Becoming An Independent Life Insurance Broker In California

Becoming an independent life insurance broker in California requires a specific set of steps to be followed. While the process may seem daunting, it is a rewarding career path for those interested in the insurance industry. This paragraph will introduce the topic and provide an overview of the requirements and steps necessary to become a successful independent life insurance broker in the state of California.

Pick an area of expertise

Picking an area of expertise is an important step in becoming an independent life insurance broker in California. This will help you specialise in a specific type of policy and provide valuable expertise to your clients. Here are some factors to consider when choosing your area of expertise:

Existing Skill Set and Experience

Consider your existing skills and experiences when deciding on an area of specialisation. Ask yourself what insider knowledge you possess that will enable you to effectively guide your clients in finding the best coverage for their needs. For example, if you have a background in finance or accounting, you may be well-suited to advise clients on insurance policies that relate to financial planning, such as life insurance or annuities.

Interest in Specific Types of Policies

Choose an area of insurance that aligns with your interests. This will help you stay motivated and engaged in your work. For instance, if you are passionate about health and wellness, you may want to specialise in accident and health insurance. This type of insurance covers medical expenses and disability income, so you would be helping clients navigate their options in the event of an accident or illness.

Market Demand and Opportunities

Research the demand for different types of insurance in your target market. Identify areas where there is a high demand or a gap in the market that you can fill. For example, if you live in an area with a high concentration of businesses, you may consider specialising in commercial insurance, such as business property insurance or liability insurance.

Your Network and Connections

Think about your existing network and connections when choosing an area of expertise. For instance, if you have connections in the automotive industry, you might consider specialising in automobile insurance. Your network can provide a valuable source of referrals and help you build your client base more quickly.

Continuing Education Requirements

When selecting an area of specialisation, consider the continuing education requirements to maintain your license. Different specialisations may have varying requirements for the number of hours and types of courses needed to stay up-to-date with industry changes. Ensure you are comfortable with the ongoing education expectations for your chosen area of expertise.

Meet California's pre-licensing education requirements

To become an independent life insurance broker in California, you must meet the state's pre-licensing education requirements. Here's what you need to know:

The California Department of Insurance requires aspiring insurance brokers to complete a minimum of 20 hours of classroom instruction specifically in life insurance. This ensures that candidates have a strong understanding of insurance policies, laws, ethics, and procedures related to life insurance. This pre-licensing education can be completed through various programs offered online or in a traditional classroom setting.

In addition to the 20 hours of life insurance-specific instruction, new brokers and brokers licensed in another state must also complete a one-time, 12-hour course focusing on ethics and the California Insurance Code. This course is mandatory for your first application and license.

If you're seeking both the Property and Casualty Broker-Agent license and the Life license, you only need to take one 12-hour course covering ethics and the California Insurance Code. This is specified in Section 1749(d) of the California Insurance Code.

The pre-licensing education will equip you with the knowledge and skills necessary to pass the licensing exam and eventually succeed as a life insurance broker. It will cover essential topics such as insurance ethics, California-specific insurance codes and regulations, life insurance products, procedures, and sales.

The total pre-licensing education requirement for life insurance brokers in California is 32 hours, including the 12-hour ethics and California Insurance Code course. By fulfilling these requirements, you'll be well on your way to meeting the standards set by the state for insurance brokers.

Remember, the goal of these pre-licensing education requirements is to ensure that you have a comprehensive understanding of life insurance and the applicable laws and ethics in California. This knowledge will not only help you pass the licensing exam but also provide a strong foundation for your career as an independent life insurance broker in the state.

Submit fingerprints to the California Department of Insurance

To become an independent life insurance broker in California, you must submit your fingerprints to the California Department of Insurance (CDI) as part of the background check process. This is a mandatory step to ensure that applicants have no criminal history and to maintain a state record of licensed insurance professionals.

Step 1: Schedule an Appointment

You can schedule an appointment with the CDI's contracted fingerprint vendor, Accurate Biometrics, by calling (866) 361-9944. They have multiple locations in California, including Los Angeles, Sacramento, and San Francisco.

Step 2: Download and Fill Out the Required Forms

Before your appointment, download and fill out the necessary forms, which include:

• CDI Applicant Instruction Form (LIC 442-39A): This form includes instructions for residents and a form for credit card payment.
• Live Scan Form: Fill out the applicant information and sign the form. Note that the form number on the Live Scan Form itself is BCIA 8016, while the CDI form packet number is LIC 442-39A.
• Credit Card Payment Form (optional): If you plan to pay by credit card, complete this form and bring it with you.

Step 3: Attend the Appointment

On the day of your appointment, bring the following documents with you:

• Completed Live Scan Request (LIC 442-39A)
• Completed Credit Card Payment Form (if applicable)

Step 4: Pay the Processing Fee

The total processing fee for the fingerprint impressions is $59.00, which includes the FBI processing fee of $17, the DOJ processing fee of $32, and the CDI's contractor's rolling fee of $10.00.

Please note that Accurate Biometrics accepts various payment methods, including money order, cashier's check, personal check, and credit card (Visa, MasterCard, American Express, or Discover Card). Cash is not accepted.

Step 5: Check the Status of Your Fingerprints

It is recommended to allow a minimum of seven days from the date the fingerprint impressions were taken before checking the status. If your fingerprints are delayed, follow these steps:

• Check with the California Department of Insurance (CDI) at (800) 967-9331, as the Department of Justice (DOJ) sends results directly to them.
• If the CDI does not have your results, use the DOJ's online Applicant Background Check Status: https://applicantstatus.doj.ca.gov. You will need your date of birth and the 10-digit Automated Transaction Identifier (ATI) number from the DOJ form.

By following these steps, you can ensure that your fingerprint submission is properly processed and that your application for an insurance broker license in California remains on track.

Pass the California insurance licensing exam

To pass the California insurance licensing exam, you must first complete the required prelicensing education for your specialty. The California Department of Insurance requires all aspiring insurance brokers to receive 20 hours of classroom instruction in the type of insurance they want to specialize in.

For example, if you are seeking a license in life insurance, you will need to complete 40 hours of prelicensing education. This includes 20 hours of education in life insurance and procedures, and 20 hours of training in accident and health insurance. If you are seeking a license in property and casualty insurance, you will need to complete 40 hours of prelicensing education, including 20 hours of education in property and casualty insurance codes and procedures.

Once you have completed the required prelicensing education, you can register for the licensing exam. The exam is a computer-based test that covers 60 to 150 questions, depending on the type of exam. For example, if you are testing for accident and health insurance, the exam is 75 questions long and you are allowed one and a half hours for completion.

To register for the exam, you will need to visit the PSI website and schedule an appointment. The examination fee is $50 if scheduled at a California Department of Insurance examination site or $83 at a PSI examination site. California Department of Insurance examination sites are located in Los Angeles, Sacramento, and San Francisco.

On the day of the exam, arrive at least 30 minutes early and bring a valid form of state or government-issued identification, such as a passport, employment authorization card, or permanent resident card. The content of the exam will depend on the insurance specialty you have chosen. It will cover fictional scenarios, specific policies, and California laws regarding insurance.

If you do not pass the exam on your first attempt, you can reschedule and try again. However, a rescheduling fee will be charged.

Apply for a license

Once you have passed your exam, you can apply for a license. You can do this online using the Fast Licensing Application Service (FLASH). You will need to provide information for a background check and a credit check. If you have been convicted of felony crimes of dishonesty or breach of trust, or any violation of Title 18 U.S.C. § 1033, you must submit a 1033 Application for Written Consent to obtain the consent of the Commissioner prior to licensing.

The licensing fee depends on your specialty. It is $170 for most specialties, but for Bail Agents, the fee is $566.

You can access your license on the California Department of Insurance site. However, you will need to submit additional forms before you can act as an insurance agent.

Frequently asked questions