Life Insurance License: California's Study Hours Requirement

To become a life insurance agent in California, you must complete a prelicensing course before taking the state licensing exam. The prelicensing course will take 20 hours for life insurance, and an additional 12 hours of ethics and California Insurance Code. This means that in total, you will need to complete 32 hours of prelicensing education to become a life insurance agent in California.

Pre-licensing course

To obtain a life insurance license in California, you must complete a prelicensing course that is certified by the California Department of Insurance (CDI). This course will provide you with the knowledge and tools necessary to pass the state licensing exam and understand your duties as a life insurance agent.

The prelicensing course requirements vary depending on the specific type of insurance license you are seeking. For example, the Life/Accident & Health license requires 40 hours of prelicensing, while the Accident & Health or Sickness license requires 20 hours. Additionally, all licenses require 12 hours of Ethics and California Insurance Code. It's important to note that you cannot exceed eight hours of instruction per day.

The prelicensing course will cover various insurance concepts, definitions, insurance laws, and agent regulations outlined in the California Pre-Licensing Educational and Examination Objectives. The course will be presented in a clear and concise format and may include instructional videos, interactive illustrations, practice exams, and student support.

It is recommended to choose a reputable prelicensing course provider, such as Kaplan, which offers high pass rates for their students. The cost of the prelicensing course can vary, but it is important to invest in a quality education to increase your chances of passing the state licensing exam.

Once you have completed the prelicensing course, you will be awarded a Certificate of Course Completion, which is valid for three years. This certificate is a requirement to schedule and sit for the state licensing exam.

Exam

To obtain a life insurance license in California, you must pass a state licensing exam. Here is some information about the exam:

The California life insurance exam is administered by PSI Exams and consists of 75 scored questions, divided into two sections: general and state-specific. The general section covers basic life insurance product knowledge, while the state section focuses on insurance concepts, terms, rules, regulations, and practices specific to California. You will have 105 minutes to complete the exam.

Preparation

To prepare for the exam, you must complete a pre-licensing course that covers various insurance concepts, definitions, insurance laws, and agent regulations. These courses are offered in classroom or online formats and typically span 32 to 52 hours. The pre-licensing course will provide you with the necessary knowledge and tools to pass the licensing exam.

Retakes

If you do not pass the exam on your first attempt, you can retake it as soon as 24 hours after your initial try. However, you are only allowed to retake the exam up to 10 times within a 12-month period. If you exceed this limit, the California Department of Insurance (CDI) will ban you from retaking the exam for a year from the date of your last attempt.

Results

After taking the exam, you will receive a diagnostic report indicating your scores in both the general and state-specific sections, along with the areas you need to improve. If you pass the exam, you can proceed to the next steps of the licensing process.

Background check

To obtain a life insurance license in California, individuals must undergo a rigorous background check to ensure their integrity and suitability for the industry. This process is designed to uphold the professionalism and security of the insurance sector, protecting both consumers and businesses. Here is an overview of the background check process for aspiring life insurance agents in California.

The California Department of Insurance (CDI) conducts comprehensive background investigations on all applicants seeking a life insurance license. This process includes a thorough review of the individual's personal, professional, and criminal history. Fingerprinting is typically part of the background check procedure, serving to verify identity and facilitate a criminal record search. The CDI may also request additional information or documentation from applicants during this comprehensive vetting process.

During the background check, the CDI scrutinizes various aspects of an applicant's history. This includes verifying their residential address history, ensuring they have a stable and legitimate living situation. Additionally, the CDI examines professional licenses held in other states or jurisdictions, assessing any disciplinary actions or complaints associated with them. This holistic review process helps maintain the highest standards of ethics and professionalism across the industry, regardless of an agent's geographic location or past experience.

The background investigation also involves a thorough review of the applicant's financial history. This includes checking for any bankruptcies, liens, or judgments that may raise concerns about their financial responsibility and trustworthiness. The CDI treats these financial matters with the utmost seriousness, as they could indicate potential risks or vulnerabilities that might impact consumers or the industry negatively. Any discrepancies or adverse findings in an applicant's financial history may lead to further inquiries or even impact their eligibility for obtaining a life insurance license.

In addition to the standard background check, the CDI may conduct interviews with applicants as part of their due diligence. These interviews serve to clarify information or address any concerns that may arise during the investigation. Applicants may be asked to discuss specific incidents, provide additional context for past actions, or offer explanations for any discrepancies discovered during the review process. This interactive component of the background check allows for a more comprehensive understanding of an applicant's background and character before rendering a licensing decision.

The background check process for a life insurance license in California is designed to be rigorous and comprehensive. It aims to uphold the integrity and professionalism of the insurance industry while protecting consumers by ensuring that only qualified and trustworthy individuals obtain licenses. By meticulously scrutinizing applicants' personal, professional, and financial histories, the CDI maintains high standards for agents operating within the state. This meticulous vetting process helps foster trust and confidence in the insurance sector, assuring consumers that their interests are safeguarded when dealing with licensed life insurance agents in California.

Application

The application process for a life insurance license in California is straightforward and can be completed online. Here is a step-by-step guide on how to apply:

Step 1: Complete a Pre-licensing Course

Before applying for a life insurance license in California, you must complete a pre-licensing course that is certified by the California Department of Insurance (CDI). This course will provide you with the necessary knowledge to sell insurance and prepare you for the licensing exam. The pre-licensing course requirements for life insurance in California include:

• 20 hours of life insurance pre-licensing education
• 12 hours of ethics and California Insurance Code

There are various pre-licensing course providers, such as Kaplan and AB Training Center, that offer these courses in different formats, including classroom, online, and self-study options. After successfully completing the course, you will receive a Certificate of Course Completion, which is valid for three years.

Step 2: Register and Pass the Licensing Exam

Once you have completed your pre-licensing course, the next step is to register and pass the California Life Insurance Licensing Exam. This exam is administered by PSI Exams, and you can schedule an appointment by creating an account on their website or calling them directly. The exam consists of 75 scored questions, including general and state-specific sections, and you will have 105 minutes to complete it. The exam fee is $88, plus a $33 convenience fee, and you must bring a valid form of photo identification.

Step 3: Submit Fingerprints and Background Check

As part of the application process, the California Department of Insurance requires fingerprinting and a background check to ensure applicants are eligible to become licensed insurance agents. You can schedule an appointment for fingerprinting at a PSI testing site or a CDI testing site. The fingerprinting process will vary in cost depending on the site you choose:

• $75 at a CDI testing site
• $84.95 at a PSI testing site
• $68.95 if done on-site at a PSI test center

Step 4: Complete the License Application

After passing the licensing exam and completing the background check, you can proceed to apply for your California life insurance license. The application can be submitted online through the CDI website or via mail. The application fee is $188, and there may be an additional transaction fee of $5.60 if applying through the National Insurance Producer Registry (NIPR).

Step 5: Wait for Application Results

The final step is to wait for your application to be reviewed and approved. The CDI typically requires four weeks to process and approve your license once they have received all the required documentation. You will receive an email with a link to view and print your insurance license.

Additional Information

It is important to note that you must complete the application process and receive your insurance license within 12 months of passing the licensing exam. Additionally, to maintain your license, you will need to renew it every two years and complete 24 hours of continuing education credits.

Renewal

To renew your life insurance license in California, you must complete 24 hours of continuing education (CE) credits every two years. The California Department of Insurance recommends completing these hours at least 60 days before your license expires.

The 24-hour CE requirement consists of 21 hours in the line(s) of insurance you're licensed to sell, and 3 hours of ethics training (including 1 hour of state-mandated Anti-Fraud Video content for renewals after 3/1/2023).

If you are a Limited Lines Automobile Agent, you must complete 20 hours of CE every two years, with 17 hours in your licensed line of insurance and 3 hours of ethics training.

If you are 70 years of age or older and have been licensed for 30 continuous years in California as a licensee in good standing, you may be exempt from the continuing education requirement. However, this exemption does not apply to individuals licensed for the first time on or after January 1, 2010.

In addition to the general CE requirements, there are specific course requirements for different types of insurance licenses. For example, agents licensed in Accident & Health who sell, solicit, or negotiate Long-Term Care (LTC) products must complete 8 hours of initial LTC Certification Training. After the initial requirement, agents must complete 8 hours of LTC training during each two-year licensing term.

To renew your license, you will need to file a renewal application through the California Department of Insurance website. You will need your license number and renewal ID number, as well as a credit or debit card to pay the renewal fee. The renewal fee is $188, and the late fee is $282.

If your license renewal is late, you will be required to pay a 50% penalty fee. You have one calendar year from the expiration date to renew a lapsed license. During this time, you will not be able to transact insurance business until the license is renewed. If the expired license is not renewed within one year, you will need to file a new application and may need to complete prelicensing education and pass the qualifying exam again.

Frequently asked questions