Selling Life Insurance In California: A Comprehensive Guide

If you're looking to sell life insurance in California, you'll need to get a license. The process is relatively straightforward and involves five main steps. First, you'll need to complete a pre-licensing course, which will provide you with the necessary knowledge to pass the licensing exam. This course covers various insurance concepts, definitions, laws, and regulations. Next, you'll need to pass the California Life Insurance Licensing Exam, which consists of 75 scored questions and has a time limit of 105 minutes. After passing the exam, you'll need to get a fingerprint-based background check. Once that's done, you can submit your license application, which has an associated fee. Finally, you'll need to wait for your application to be reviewed and approved. The entire process can take a few weeks, so it's important to be patient and thorough.

Complete a pre-licensing course

To sell life insurance in California, you need to complete a pre-licensing course. This is a requirement for anyone seeking an insurance license in California. The pre-licensing course will equip you with the knowledge and tools to prepare for your state licensing exam.

The California Department of Insurance (CDI) requires a minimum of 20 hours of approved prelicensing study. However, if you are applying for more than one license and have already completed the required 12 hours of Ethics and California Insurance Code, you will need to complete a total of 40 hours of prelicensing study.

The pre-licensing course will cover various insurance concepts, definitions, insurance laws, and agent regulations listed on the California Pre-Licensing Educational and Examination Objectives. It will include instructional videos, interactive illustrations, practice exams, and student support.

You can choose to take your pre-licensing course online, live online, live, or through self-study. Online courses are self-paced and typically allow a maximum of eight hours per day of instruction. To successfully complete the course, you must answer biodata/security questions correctly and progress through each page of the course before proceeding to the next (forced progression).

After completing your pre-licensing course, you will need to pass a state licensing exam. The exam will cover general insurance product knowledge and state-specific insurance concepts, terms, rules, regulations, and practices. You will need to answer between 75 and 150 questions, depending on the type of insurance license you are seeking.

Pass the California Insurance Licensing Exam

To sell life insurance in California, you must pass the California Insurance Licensing Exam. Here's a step-by-step guide to help you pass:

Step 1: Complete a Prelicensing Course

Before taking the California Insurance Licensing Exam, you must complete a prelicensing course. This course will provide you with the necessary knowledge and skills to pass the exam and become a licensed insurance agent. The prelicensing course covers various topics, including insurance fundamentals, state-specific laws and regulations, and ethical guidelines. You can choose from different study options, such as online courses, live classes, or self-study materials. The number of study hours required varies depending on the type of license you are seeking. For example, the Life and Accident and Health license, which is the highest line of authority available, requires 52 hours of prelicensing study. However, if you are applying for multiple licenses and have completed the 12-hour Ethics and California Insurance Code course, the required hours are reduced to 40.

Step 2: Register for the Exam

Once you have completed your prelicensing course, you need to register for the California Insurance Licensing Exam. The exam is administered by PSI Services, and you can schedule your exam appointment online, by phone, or by mail. The exam consists of 75-150 questions, depending on the type of insurance license you are seeking. You will have a time limit of 90 minutes to 3 hours to complete the exam, and you must achieve a passing score of 60%. It is important to note that security measures are in place for all testing methods, and restrictions on what you can bring to the testing centre will be enforced.

Step 3: Prepare for the Exam

To increase your chances of passing the California Insurance Licensing Exam on your first attempt, it is essential to prepare thoroughly. You can find various study materials and practice exams offered by different providers. These materials cover the exam topics, such as insurance laws, regulations, and ethical practices. Additionally, you can enrol in exam prep courses or review classes to reinforce your knowledge and identify areas that require extra focus. It is recommended to create a study plan and stick to it to ensure you cover all the necessary material before the exam.

Step 4: Take the Exam

On the day of your exam, arrive at the testing centre early with a valid form of government-issued identification, such as a driver's license or passport. If you do not bring the required identification, your exam may be rescheduled. During the exam, carefully read and follow the instructions provided. Manage your time effectively, as you will have a limited amount of time to complete the exam. Answer the questions to the best of your ability, and if you are unsure about a question, you can mark it for review and return to it later if time allows.

Step 5: Review Your Results

After completing the exam, you will receive your results immediately. If you pass, you will receive a successful notification and a performance summary. If you do not pass, you will receive an unsuccessful notification along with a diagnostic report indicating your strengths and weaknesses in different exam areas. Use this information to identify areas you need to improve upon if you need to retake the exam.

Get fingerprinted

To sell life insurance in California, you'll need to get fingerprinted as part of the background check process. This is a requirement for all unlicensed applicants.

How to Get Fingerprinted:

You can get your fingerprints taken before or after your licensing exam. It's recommended to get them done beforehand to minimize the risk of any delays in getting your license issued while awaiting the results from the California Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI).

To get your fingerprints taken, follow these steps:

• Schedule an Appointment: Contact the California Department of Insurance's (CDI) contracted fingerprint vendor, Accurate Biometrics, at (866) 361-9944 to find a fingerprint location near you and schedule an appointment.
• Complete the Necessary Forms: Download and complete the Live Scan Form (BCIA 8016) and the CDI Applicant Instruction Form (LIC 442-39A), which includes instructions for residents on page 1. If you plan to pay by credit card, also complete the Credit Card Payment Form.
• Bring the Required Documents to Your Appointment: When you go for your fingerprint appointment, bring the completed Live Scan Request form and, if paying by credit card, the completed Credit Card Payment Form.
• Pay the Applicable Fees: 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. Checks should be made payable to Accurate Biometrics. They also accept money orders, cashier's checks, personal checks, and major credit cards (Visa, MasterCard, American Express, or Discover Card). Cash is not accepted.
• Check the Status of Your Fingerprints: Allow a minimum of seven days from the date your fingerprints were taken before checking the status. First, check with the CDI at (800) 967-9331, as the DOJ sends results directly to them. If the CDI does not have the results, visit the DOJ website (https://applicantstatus.doj.ca.gov) to verify your status. You will need your date of birth and the 10-digit Automated Transaction Identifier (ATI) number from the DOJ form requesting Live Scan fingerprint background checks.

Please note that 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 your license can be issued.

Apply for a license

Once you have passed your state licensing exam and completed the background check, you can apply for your California life insurance license. The application fee is $188. There is no service fee if you apply via Sircon. If you apply via the NIPR, you must pay a $5.60 transaction fee.

You can submit your application to the NIPR's Attachment Warehouse or the California Department of Insurance by mail:

California Department of Insurance Producer Licensing Bureau

320 Capitol Mall

Sacramento, CA 95814

The CDI will issue a life insurance license to individuals who are at least 18 years old and have passed the proper licensing exam. You should submit your completed license application within 12 months of passing the exam.

To apply for a life insurance license in California, make sure you comply with the insurance licensing requirements as defined under the California Insurance Code.

Send any questions or supporting documents to the CDI Contact Form.

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. Sircon charges a $5.60 fee to print a license. You can also check the status of your license application by visiting the CDI Check License Application Status Service (CLASS) page.

Complete required CE credits

To sell life insurance in California, you must complete the required insurance continuing education (CE) credits. The number of CE credits required depends on the type of insurance license you are seeking. For example, the Life and Accident and Health license, which is the highest line of authority you can test for, requires 52 hours of pre-license study. If you are applying for more than one license and have already completed the required 12 hours of Ethics and California Insurance Code, the 52 hours are reduced to 40.

In California, you need to take 24 hours of CE credits every two years to renew your life insurance license. The state also requires life insurance agents to complete eight hours of California-specific annuities training before soliciting individual customers to sell annuities. This training must be completed every license renewal period. If a life insurance agent sells an annuity product in a subsequent license term, they must complete a four-hour, California-specific annuity training course during that license term.

It is important to note that if you have a non-resident license and are in good standing in your home state, you are not required to take CE courses in California. To determine if you need to take California-specific courses, visit the Sircon website and click on "Continuing Education Transcript Inquiry."

Frequently asked questions