Life Insurance Licenses: California's Comprehensive Credentials

Life insurance is a heavily regulated industry, and those selling insurance in California are required to hold a license. There are several types of insurance licenses available in the state, including Life, Accident & Health (L&H), Property & Casualty (P&C), and Personal Lines Property & Casualty. Obtaining a license in California involves a multi-step process, including pre-licensing education, fingerprinting and background checks, passing a state licensing exam, and submitting an application. The exact requirements and fees vary depending on the type of license being sought.

Pre-licensing course requirements

To obtain a life insurance license in California, you must complete a prelicensing course that has been approved by the Department of Insurance. This is a mandatory requirement before you can take the state licensing exam.

California requires 20 hours of life insurance pre-licensing education. You must also complete 12 hours of ethics and California Insurance Code training to satisfy the state's 32-hour pre-licensing education requirements.

Pre-licensing courses are available in both online and classroom settings, providing flexibility to accommodate different learning styles and schedules. Online courses are self-paced and include study materials like practice exams and flashcards.

When choosing a pre-licensing course, consider the following:

• Course flexibility: Does it allow for flexible learning, or does it require completion within a short time frame?
• Course price: While cost is an important factor, remember that more expensive courses may offer more comprehensive resources and support.
• Course reputation: How reliable is the course provider? Do they have a good pass rate for the exam?

Kaplan is a popular choice, with over 81% of readers of StateRequirement using their online courses, which come with a 93% pass rate.

Once you have completed your prelicensing course, you will receive a certificate of completion, and you can then schedule your state licensing exam.

Fingerprint and background check

To obtain a life insurance license in California, you must complete a fingerprint-based background check. This is a mandatory step in the process and must be done before you can take the California life insurance licensing exam. The background check is carried out by the California Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI).

The CDI's contracted fingerprint vendor is Accurate Biometrics. You can schedule an appointment with them to have your fingerprints taken at one of their locations or at a PSI test center. The total processing fee for fingerprint impressions taken at an Accurate Biometrics location is $59, including the FBI processing fee of $17, the DOJ processing fee of $32, and a CDI contractor rolling fee of $10. PSI test centers charge a total processing fee of $68.95, which includes the same processing fees and a higher CDI contractor rolling fee of $19.95.

To properly get a fingerprint-based background check, you must:

• Complete the Request for Live Scan Service (Form BCIA 8016) and print the Licensing Applicant Instructions (Form LIC 442-39A).
• Take your completed Request for Live Scan Service form to an authorized live scan fingerprint vendor.
• Complete the fingerprint impressions.
• Keep a copy of your completed Request for Live Scan Service form for your records. The live scan service vendor will provide you with an Automated Transaction Identifier (ATI) number assigned to your fingerprint impressions. If your fingerprint impressions are rejected, this number will allow you to have them redone at no charge.

It is important to note that obtaining your fingerprint impressions beforehand will minimize the risk of delaying your license issuance while awaiting results from the DOJ and FBI. The fingerprint requirement must be fulfilled before your license can be issued.

State licensing exam

To obtain a life insurance license in California, you must pass the state licensing exam. This is the third step in the process, after completing a pre-licensing course and getting a fingerprint-based background check.

The California life insurance exam contains a total of 75 scored questions across two sections: general and state-specific. The general section deals with basic life insurance product knowledge, while the state-specific section covers insurance concepts and terms, rules, regulations, and practices specific to California. You will have 105 minutes to complete the exam, which is proctored. The California life insurance exam fee is $88, which you must pay at the time of reservation by credit card, debit card, or voucher.

The exam is administered by PSI Services LLC (PSI), which provides state-based regulatory licensure services and handles the scheduling of examinations for individuals licensed by the California Department of Insurance's (CDI) Producer Licensing Bureau. You can schedule your exam with PSI online or by telephone. PSI offers the option to take the exam at one of their 20 test centers across California or via a remote online proctored exam. There is a $43 convenience fee for taking the exam at a PSI location and a $43 convenience fee for taking the remote test.

To pass the exam, you must achieve a score of 60% or higher. If you fail, you can retake the exam as soon as 24 hours after your first attempt. However, you may only retake the same exam up to 10 times within a 12-month period; after that, the CDI will ban you from retaking the exam for a year from the date of your last attempt.

Once you have passed the state licensing exam, you can proceed to the next step, which is to complete a California Life Insurance License Application.

Application process

To obtain a life insurance license in California, you must complete a five-step process:

Step 1: Complete a California Insurance Pre-license Course

Before taking the California life insurance licensing exam, you must complete a pre-license education course. This will equip you with the knowledge and tools necessary to prepare for the exam. California requires 20 hours of life insurance pre-licensing education, including 12 hours of ethics and California Insurance Code, to satisfy the state's 32-hour pre-licensing education requirements. Pre-license education courses are self-paced and include study materials like practice exams and flashcards.

Step 2: Get a Fingerprint-Based Background Check

After completing the pre-licensing education requirements, you must obtain a fingerprint-based background check before taking the licensing exam. The CDI's contracted fingerprint vendor is Accurate Biometrics, with a fee of $59 plus additional processing fees. You can also get fingerprinted at a PSI test centre for a total processing fee of $68.95.

To get a fingerprint-based background check, you must:

• Complete the Request for Live Scan Service (Form BCIA 8016) and print the Licensing Applicant Instructions (Form LIC 442-39A).
• Take your completed Request for Live Scan Service form to an authorized live scan fingerprint vendor.
• Complete the fingerprint impressions.
• Keep a copy of your completed form for your records, and give a copy to the live scan service vendor, who will provide you with an Automated Transaction Identifier (ATI) number.

Step 3: Take the California Life Insurance Licensing Exam

After completing the fingerprinting requirement, you can take the California life insurance exam. California uses PSI Exams as its official testing service. The exam contains 75 scored questions, including general and state-specific sections, and you will have 105 minutes to complete it. The exam fee is $88, which must be paid at the time of reservation.

Step 4: Complete a California Life Insurance License Application

Once you have passed the exam and completed the background check, you can apply for your California life insurance license. The application fee is $188, with an additional $5.60 transaction fee if applying via the National Insurance Producer Registry (NIPR). There is no service fee if you apply via Sircon. You can submit your application to the NIPR's Attachment Warehouse or the California Department of Insurance by mail.

Step 5: Watch for Your Application Results

After completing the above steps, the CDI will review your application and background check. This process usually takes two to three weeks from the date you send your application. You can print your license from the Sircon or NIPR websites for a small fee, and you can also check the status of your application on the CDI Check License Application Status Service (CLASS) page.

Continuing education

To maintain your life insurance license in California, you must complete 24 hours of continuing education (CE) credits every two years. This includes eight hours of California-specific annuities training before soliciting individual customers to sell annuities. If a life insurance agent sells an annuity product in a subsequent license term, they must also complete a four-hour, California-specific annuity training course during that license term.

In addition, as of January 1, 2025, California life insurance agents who sell variable life insurance policies must complete two hours of topic-specific CE before each license renewal. Agents who were licensed on or after January 1, 2024, must complete four hours of life insurance CE before soliciting customers to sell specified life insurance policies.

The required hours of CE training are the same for both resident and non-resident license holders. However, non-resident license holders must also satisfy California's specific requirements for annuities and long-term care.

You can complete your CE credits through online courses, webinars, or in-person classes. These courses cover relevant topics such as anti-money laundering, classroom equivalency, long-term care certifications, property-casualty basics, and more.

It is important to note that you should complete your CE hours at least 60 days before your license expires to ensure timely processing. The renewal fee is $188, and the late fee is $282.

Frequently asked questions