What Key Person Insurance Requirements Apply in New Jersey?

A life policy’s guaranty-association death-benefit protection in New Jersey is capped at $500,000 per insured life. If your business is insuring more than one key person or buying a large benefit, ask how the state limit applies to each insured and to policies held by the same owner. Ask the broker to link the person’s role, business exposure, and proposed owner in the application materials. Include that explanation in the issuance checklist. Compare your ownership and insured’s role with N.J.S.A. 17B:24-1.1(a)(4).

What Is Key Person Insurance?

Key person insurance pays the business, not the person’s family, when a founder, partner or employee it relies on dies. Disability, overhead expense and buyout funding are separate products to discuss on their own. Read the national Key person guide.

What Should You Watch for With Key Person Insurance in New Jersey?

Document the Business Interest
Ask the broker to link the person’s role, business exposure, and proposed owner in the application materials. Include that explanation in the issuance checklist. ¹
Complete Written Notice and Consent
The employer’s New Jersey file should preserve both the written notice and signed consent before coverage begins. Match the disclosed amount to the policy schedule. ^2,³
Check the State Guaranty Backstop
The published New Jersey life-association limit is $500,000 per insured life. For a multi-person program, compare the per-life amount with the separate owner aggregate reported in NOLHGA’s model. Include it when assessing exposure to one insurer failure. For issuance, also check N.J.S.A. 17B:24-1.1(a)(4). ^4,^5,¹

Which Key Person Insurance Providers Have New Jersey License Records?

These providers publish a national listing for Key person; the license records below name the licensed entities and roles. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in New Jersey. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

Vouch
Insurance producer, Surplus-lines broker · checked 2026-09-28
Vouch Specialty Insurance Services, LLC
Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. ²⁰
Vouch arranges key person coverage for technology businesses.

Who Regulates Insurance in New Jersey?

New Jersey Department of Banking and Insurance

New Jersey DOBI licenses insurers and producers, reviews insurance products and rates, monitors insurer solvency and responds to insurance complaints. The Property and Casualty unit regulates commercial and personal property and casualty rates, rules and forms. ^6,^7,^8,⁹

Website: Regulator website
License lookup: Search licensed producers
Complaints: File a complaint
Phone: 800-446-7467

Surplus-Lines Tax and Stamping Office in New Jersey

Reported tax rate. 5% of gross premium, less return premium ^10,^11,¹²

New Jersey’s Department of Banking and Insurance states a 5% surplus-lines tax for policies effective on or after July 1, 2009; its FAQ also describes direct-procurement tax filing for premium allocated to New Jersey. A New Jersey surplus-lines producer generally must make a diligent effort to place the risk with authorized insurers, subject to the exportable-list and other statutory exceptions. New Jersey’s separate surplus-lines guaranty fund has narrow coverage; ordinary commercial surplus-lines claims are generally outside guaranty protection.

What Should You Ask Before Buying Key Person Insurance in New Jersey?

What New Jersey law supports our business’s insurable interest in this person, and what should we retain to prove the role?
What written notice and consent must the insured receive before this policy is issued, and can coverage continue after employment ends?
How would New Jersey’s guaranty-association limit apply to this policy and our other business-owned life policies?

Key Person Insurance in New Jersey: Frequently Asked Questions

How much of a key person life policy is protected if an insurer fails in New Jersey?

NOLHGA’s New Jersey entry shows $500,000 for life death benefits. The amount applies to guaranty coverage; ask how your ownership and insured lives are counted. NOLHGA reports an aggregate $5 million limit for one owner’s multiple nongroup life policies. ^4,⁵

Does my business need an employee’s consent for key person insurance in New Jersey?

Yes. Federal rules require written notice and consent before issue for the employer-owned life tax exception. The employer’s New Jersey file should preserve both the written notice and signed consent before coverage begins. Match the disclosed amount to the policy schedule. Ask who will retain the consent and how the insured can access it. For state-law details, check N.J.S.A. 17B:24-1.1(a)(4). ^2,^3,¹

Sources for Key Person Insurance in New Jersey

1
New Jersey Revised Statutes § 17B:24-1.1 — Insurable Interest. State statute (Justia U.S. Codes and Statutes); N.J.S.A. 17B:24-1.1(a)(4). Accessed 2026-09-28.
2
26 U.S.C. § 101(j) — Certain employer-owned life insurance contracts. Office of the Law Revision Counsel, U.S. House of Representatives; 26 U.S.C. § 101(j)(2), (4). Accessed 2026-09-28.
3
Internal Revenue Bulletin 2009-24 — Employer-Owned Life Insurance Contracts. Internal Revenue Service; Notice 2009-48, Q&A 6–7; written notice and consent. Accessed 2026-09-28.
4
How You’re Protected: Coverage Levels by State. National Organization of Life & Health Insurance Guaranty Associations; Coverage Levels by State; life insurance death benefits; report current as of May 2025. Accessed 2026-09-28.
5
Life and Health Insurance Guaranty Association Model Act. National Association of Insurance Commissioners; Section 8(A)(2)(d), owner aggregate benefit cap. Accessed 2026-09-28.
6
New Jersey Department of Banking and Insurance. New Jersey Department of Banking and Insurance; Official regulator homepage. Accessed 2026-09-28.
7
Division of Insurance. New Jersey Department of Banking and Insurance; States that Division issues insurer/producer licenses, reviews products and rates, monitors solvency and responds to consumer concerns. Accessed 2026-09-28.
8
Insurance Licensing and Education. New Jersey Department of Banking and Insurance; Official producer licensing page links to NJDOBI Licensee Search and SBS Licensee Search. Accessed 2026-09-28.
9
Consumer Information. New Jersey Department of Banking and Insurance; Official consumer assistance/complaints destination; DOBI hotline 800-446-7467. Accessed 2026-09-28.
10
Surplus Lines FAQs. New Jersey Department of Banking and Insurance; Current DOBI FAQ states 5% on policies effective on/after July 1, 2009 and identifies direct-procurement filing when NJ receives an out-of-state surplus-lines premium allocation. Accessed 2026-09-28.
11
N.J.A.C. 11:1-33.3, Surplus Lines Procurement Requirements. New Jersey Department of Banking and Insurance; Rule requires diligent effort to place with authorized insurer except coverages on Exportable List. Accessed 2026-09-28.
12
Surplus Lines Tax Q&A. New Jersey Department of Banking and Insurance; DOBI FAQ states Surplus Lines Guaranty Fund covers medical malpractice liability and property covering owner-occupied dwellings under four units; this is narrow and not ordinary business coverage. Accessed 2026-09-28.
13
Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
14
Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
15
Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
16
About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
17
Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
18
About Risklytics. Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16.
19
Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
20
Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

What Key Person Insurance Requirements Apply in New Jersey?

What Is Key Person Insurance?

What Should You Watch for With Key Person Insurance in New Jersey?

Document the Business Interest

Complete Written Notice and Consent

Check the State Guaranty Backstop