Becoming A Life Insurance Agent In California: A Guide

If you're contemplating a career as a life insurance agent in California, there are several steps you need to take to obtain a license. The process involves educational preparation, pre-licensing courses, background checks, exams, and applications. Here's an overview of the key requirements and steps to become a licensed life insurance agent in California.

Education and pre-licensing courses

To become a life insurance agent in California, you must complete a pre-licensing course. The California Department of Insurance mandates a minimum of 20 hours of approved pre-licensing study specific to life insurance. This can be found through various providers and typically covers essential topics such as insurance laws, consumer protection, and professional ethics.

In addition to the 20-hour course, you must also complete 12 hours of approved pre-licensing study on ethics and the California Insurance Code. This course is required for all applicants, even if they are applying for more than one license. However, if you are applying for both the Property and Casualty Broker-Agent license and the Life license, you only need to complete one 12-hour course on ethics and the California Insurance Code.

If you have certain designations or certifications, such as a Life Underwriter Training Council Fellowship (LUTCF) or a Chartered Life Underwriter (CLU), you may be exempt from the 20-hour pre-licensing education requirement.

The total hours of pre-licensing study required in California range from 32 to 52 hours, depending on the number of licenses you are applying for and your previous qualifications. These pre-licensing courses will give you a strong foundation in the principles of life insurance and prepare you to take the California Life Agent Qualification Exam.

Background check and fingerprinting

To become a life insurance agent in California, you'll need to complete a background check and fingerprinting. This is to ensure that you meet the state's criteria for reliability and integrity.

How to Complete a Background Check and Fingerprinting:

• After completing your pre-licensing education, you must get a fingerprint-based background check before taking the California Life Insurance Licensing Exam.
• The California Department of Insurance's (CDI) contracted fingerprint vendor is Accurate Biometrics.
• The fee for fingerprinting services is $59, plus a $17 FBI processing fee, a $32 Department of Justice processing fee, and a $10 CDI contractor rolling fee.
• Alternatively, you can take your fingerprints at a PSI test center for a total processing fee of $68.95, which includes the FBI and Department of Justice processing fees, as well as a $19.95 CDI contractor rolling fee charged at PSI test centers.
• To properly record your fingerprints, 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 and give a copy to the live scan service vendor. They will provide you with an Automated Transaction Identifier (ATI) number assigned to your fingerprint impressions. If your fingerprints are rejected, this number will allow you to have them redone at no charge.
• It is recommended to obtain your fingerprint impressions beforehand to minimize the risk of delays in license issuance while awaiting results from the California Department of Justice and the Federal Bureau of Investigation.
• If a license is not issued within 12 months of submitting your fingerprints, a new set of fingerprint impressions will be required.
• Non-payment of the fingerprint fee or failure to submit the fingerprints will delay the processing of your application.
• The fingerprint requirement must be fulfilled before the issuance of your license.

Exam preparation and registration

Once you've completed your pre-licensing courses, you'll need to register for and pass the California Life Agent Qualification Exam. This exam will test your knowledge of life insurance principles and California-specific insurance laws. A small fee is often required for registration.

The exam usually includes between 75 and 150 questions, depending on the type of insurance license you're seeking. You can schedule the exam by visiting the PSI exams test administrator website.

Kaplan's Prelicensing Content is based directly on the California licensing exams, so using their materials can help you prepare for the exam.

After passing the qualification exam, you can officially apply for your life insurance license.

Application and license issuance

Once you have completed the pre-licensing course and passed the California Life Agent Qualification Exam, you can officially apply for your life insurance license. The application will ask for details about your background, educational qualifications, and the results of your examination. A fee is generally required at this stage.

You can only file your insurance agent licensure application online through the California Department of Insurance website, as the department stopped accepting paper applications for Form 441-9 after August 2019. If you have a valid reason, you can request an exemption from the electronic-only filing rule. After applying, you will receive an eight-digit license number that shows your approval to practice in California.

Once your application has been submitted, expect to undergo a waiting period during which the California Department of Insurance reviews your credentials and conducts the necessary background checks. If everything checks out, you will be issued your life insurance license.

It is important to remember that your license will have an expiration date and continuing education (CE) requirements. In California, you must complete 24 hours of CE every two years to keep your license current.

Ongoing requirements

To maintain your life insurance license in California, you must meet certain ongoing requirements. These include:

Continuing Education

Licensees must complete approved courses, programs of instruction, or seminars equivalent to 24 hours of instruction every two years, including at least three hours of ethics training, to renew their license. This requirement may be waived for individuals over 70 years of age who have maintained a license in good standing in California for 30 continuous years. However, this exemption does not apply to those licensed for the first time on or after January 1, 2010.

License Renewal

To renew your license, you must complete the necessary continuing education requirements and pay the required fees. The frequency of renewal and specific procedures may vary, so it is essential to stay informed about the current requirements.

Professional Conduct

Adhering to ethical guidelines and staying informed about industry developments through ongoing education are crucial for success in the life insurance industry. Maintaining a high standard of professional conduct helps establish trust with clients and ensures compliance with relevant laws and regulations.

Frequently asked questions