Study guide
1.2 California Producer Licensing Requirements
California Life & Health Insurance State
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1 Standalone Coverage Map
Standalone Coverage Map: National Content vs. California Rules
2 Introduction: California Life & Health Insurance Exam Overview
California Life & Health Exam Overview
3 National Portion: Insurance & Risk Fundamentals
Risk, Peril, Hazard, and the Law of Large Numbers Insurable Interest, Indemnity, and Insurance Principles Insurance Contract Law and Elements Producers, Agents, Brokers, and Authority Types of Insurers and Distribution Systems
4 National Portion: Life Insurance Basics
2.1 Purpose and Need for Life Insurance 2.2 Term Life Insurance 2.3 Whole Life Insurance 2.4 Adjustable, Limited-Pay, and Endowment
5 National Portion: Interest-Sensitive & Variable Life
3.1 Universal Life Insurance 3.2 Variable and Variable Universal Life 3.3 Indexed Universal Life 3.4 Specialized Policies (Joint, Survivorship, Juvenile)
6 National Portion: Life Policy Provisions & Options
4.1 Standard Policy Provisions and Beneficiaries 4.2 Nonforfeiture Options and Cash Value 4.3 Dividend Options and Settlement Options 4.4 Policy Loans, Withdrawals, and Assignments
7 National Portion: Life Riders & Underwriting
5.1 Living Benefit and Disability Riders 5.2 Death Benefit and Insured Riders 5.3 Life Insurance Underwriting and Risk Classification 5.4 Field Underwriting, Applications, and Replacement
8 National Portion: Annuities - Structure & Types
6.1 Annuity Principles and Parties 6.2 Fixed and Immediate Annuities 6.3 Deferred and Indexed Annuities 6.4 Variable Annuities
9 National Portion: Annuities - Payout, Uses & Suitability
7.1 Annuity Payout Options and Annuitization 7.2 Uses of Annuities and Suitability 7.3 Annuity Regulation and Disclosure
10 National Portion: Life & Annuity Taxation, Group, and Retirement
8.1 Taxation of Life Insurance and MEC Rules 8.2 Taxation of Annuities 8.3 Group Life Insurance 8.4 Qualified Plans, IRAs, and Retirement (TEFRA/SEP/401k)
11 National Portion: Health Insurance Basics
9.1 Health Insurance Concepts and Defining the Insured 9.2 Medical Expense Insurance (Basic and Major Medical) 9.3 Managed Care: HMO, PPO, POS, and HSA/HDHP 9.4 Cost Containment and Provider Arrangements
12 National Portion: Disability Income Insurance
10.1 Disability Income Policies and Definitions of Disability 10.2 Benefit Periods, Elimination Periods, and Riders 10.3 Business Disability (Key Person, Buy-Sell, BOE) 10.4 Disability Underwriting and Taxation
13 National Portion: Health Policy Provisions & Clauses
11.1 Required and Optional Uniform Provisions 11.2 Renewability and Continuation Provisions 11.3 Exclusions, Riders, and Pre-Existing Conditions 11.4 Claims, Coordination of Benefits, and Subrogation
14 National Portion: Group Health & Employer Plans
12.1 Group Health Fundamentals and Eligibility 12.2 Group Underwriting and Contribution/Participation 12.3 COBRA, HIPAA, and Continuation 12.4 Section 125 / Cafeteria Plans and Self-Funding
15 National Portion: Senior & Government Health Programs
13.1 Medicare Parts A, B, C, and D 13.2 Medicare Supplement (Medigap) Policies 13.3 Medicaid and Long-Term Care Partnership 13.4 Social Security Disability and Benefits
16 National Portion: Long-Term Care & Supplemental Health
14.1 Long-Term Care Insurance 14.2 Dental, Vision, and Limited Benefit Plans 14.3 Specified Disease, Critical Illness, and Hospital Indemnity 14.4 Accidental Death & Dismemberment and Supplemental
17 National Portion: Affordable Care Act & Individual Market
15.1 ACA Essential Health Benefits and Metal Levels 15.2 Guaranteed Issue, Rating Rules, and Marketplaces 15.3 Premium Tax Credits and Cost-Sharing Reductions
18 National Portion: Underwriting, Producers & Claims
16.1 Health Underwriting and Risk Selection 16.2 Application, Producer Responsibilities, and Fair Credit Reporting 16.3 Claims Handling and Fraud Prevention
19 National Portion: Insurance Regulation & Licensing
17.1 State Regulation, Licensing, and McCarran-Ferguson 17.2 Marketing, Advertising, and Replacement Regulation 17.3 Company Operations, Solvency, and Guaranty Associations
20 National Portion: Ethics & Unfair Trade Practices
18.1 Unfair Trade Practices and Unfair Claims Settlement 18.2 Producer Ethics, Fiduciary Duty, and Suitability 18.3 Privacy (HIPAA/GLBA), Fraud, and Consumer Protection
21 Chapter 1: California Insurance Regulation & Licensing
1.1 California Department of Insurance (CDI) 1.2 California Producer Licensing Requirements 1.3 License Maintenance and Continuing Education
22 Chapter 2: California Life Insurance Laws
2.1 California Life Insurance Policy Requirements 2.2 California Annuity Regulations 2.3 California Replacement Rules
23 Chapter 3: California Health Insurance Laws
3.1 California Health Insurance Policy Requirements 3.2 California Medicare Supplement (Medigap) Regulations 3.3 California Disability and Long-Term Care Insurance
24 Chapter 4: California Insurance Ethics & Prohibited Practices
4.1 Unfair Trade Practices 4.2 Producer Conduct and Fiduciary Duties 4.3 California Life and Health Insurance Guarantee Association
25 Chapter 5: California Annuity Regulations & Senior Protections
5.1 California Annuity Best Interest Standard 5.2 California Senior Consumer Protections 5.3 California Variable Annuity and Indexed Annuity Regulations
26 Chapter 6: California Group Insurance & Special Topics
6.1 California Group Life and Health Insurance Requirements 6.2 California COBRA and Cal-COBRA Continuation 6.3 California State Insurance Programs
1.2 California Producer Licensing Requirements
Key Takeaways Explain This Topic AI
Effective January 1, 2026 (AB 943), California repealed the 20-hour line-specific pre-license course; only the 12-hour Ethics & CA Insurance Code course (including 1 hour of fraud) remains required.
The combined Life, Accident & Health exam has 150 scored questions; CDI lists 3 hours, and PSI may add 5 to 10 unscored experimental questions with extra time for them.
California's passing score is 60% of scored questions (90 of 150) for producer exams; adjuster and bail exams require 70%.
PSI Services LLC administers California insurance exams at testing centers statewide and via online remote proctoring; results are reported immediately.
Applicants submit Live Scan fingerprints through CDI's vendor Capital Live Scan after filing the license application; the license cannot issue until the results arrive.
Last updated: November 2026
Pre-License Education — AB 943 (Effective January 1, 2026)
California historically layered a 20-hour line-specific course on top of a 12-hour Ethics & California Insurance Code course . Assembly Bill 943 , effective January 1, 2026 , repealed the 20-hour requirement for most producer lines — including Life and Accident & Health. The only pre-license course now mandated is the 12-hour Ethics & California Insurance Code course, which must include 1 hour of insurance fraud content.
- License Type Pre-License Hours (from Jan 1, 2026) Before AB 943
- Life-Only 12 hrs (Ethics & Code) 32 hrs (20 line + 12 ethics)
- Accident & Health Only 12 hrs (Ethics & Code) 32 hrs (20 line + 12 ethics)
- Life, Accident & Health 12 hrs (Ethics & Code) 52 hrs (20+20 line + 12 ethics)
Course rules: the 12-hour course must be taken at a CDI-approved provider ; it is not required to schedule or take the exam, but it must be completed before the license is issued, and the completion certificate expires three years after the course is completed (Insurance Code 1749).
Trap : AB 943 reduced required class hours , not exam difficulty. The 150-question exam and 60% passing standard are unchanged — expect a question that tries to get you to say the exam got easier or shorter.
The Examination
PSI administers the exam. The combined Life, Accident & Health exam is the largest of the three:
- Detail Life, Accident & Health
- Scored questions 150
- Unscored experimental items PSI may add 5 to 10, with time added for them
Time limit 3 hours (CDI exam table; PSI's February 2025 bulletin lists 195 minutes including experimental items)
- Passing score 60% (90 of 150 scored)
- Format Multiple choice, computer-based
- Results Reported immediately on screen
- Provider PSI Services LLC
Narrower licenses are shorter: a Life-Only or Accident & Health-Only exam typically runs 75 scored questions in about 1.5 hours . Whatever the line, the bar is 60% .
Exam Tip : Memorize 150 questions / 60% / 3 hours for the combined exam, and 75 questions / 1.5 hours for each single-line exam.
Scheduling and Exam-Day Logistics
Schedule with PSI online or by phone; the 12-hour course is not a prerequisite for the exam.
Plan the 12-hour course at a CDI-approved school so it is done before the license is issued.
Pick a format : a physical PSI test center (locations statewide) or online remote proctoring from home.
Bring one valid, unexpired government photo ID with a signature (for example a driver's license, California ID card, passport or military ID) — the name must match your registration.
Get results immediately ; a failing report shows your performance by content area.
Retake policy: re-register with PSI and pay the exam fee again; after 10 failures of the same exam you are barred from it for 12 months (Insurance Code 1682). Budget for the PSI exam fee per attempt; the producer application/license fee is separate and paid to CDI.
Background Check — Live Scan Fingerprinting
Every applicant must submit Live Scan electronic fingerprints , which CDI uses to check records with the California Department of Justice (DOJ) and the FBI.
- Item Detail
- Method Live Scan (electronic, not ink cards)
- Timing After filing the license application, or soon after (CDI fingerprint page)
- Where CDI's vendor Capital Live Scan , more than 800 sites statewide
- Cost $74 total ($17 FBI + $32 DOJ + $25 CLS fee)
- Routing Results sent electronically to CDI and DOJ
- How Criminal History Is Evaluated
Under California Insurance Code section 1668 , CDI may deny a license for misconduct, but a record is not an automatic disqualification . CDI weighs:
- Crimes involving fraud, dishonesty, or breach of trust (most serious for an insurance fiduciary)
- Felonies substantially related to insurance duties
- Time elapsed since the offense and evidence of rehabilitation
- Any pattern of conduct
Applicants must disclose prior convictions and administrative actions on the application; failure to disclose is itself grounds for denial — often a worse outcome than the underlying offense.
Filing the License Application
After passing the exam (CDI requires residents to pass before applying):
Apply through CDI's online producer licensing system (or via NIPR), then submit Live Scan fingerprints.
Pay the license fee to CDI (the producer license is issued for a 2-year term ).
Disclose background/regulatory history truthfully.
CDI reviews and issues the license once the exam, fingerprint results and 12-hour course are on file.
License Types and Authority
License What It Authorizes
Life-Only Agent Life insurance and annuities; may include accidental death and dismemberment and disability income benefits (Insurance Code 1626)
- Accident & Health Agent Health, disability income, and long-term care insurance
- Life, Accident & Health Agent All life and health/disability products
- Life & Disability Insurance Analyst Advise/charge fees for analyzing life or disability policies
- Agent vs. Broker (and Appointments)
An agent transacts on behalf of insurers and must hold a company appointment — the insurer files the appointment with CDI authorizing the agent to represent it.
A broker arranges coverage on the client's behalf and may charge broker fees (with required fee disclosures and, often, a broker bond).
A life agent owes the applicant a duty of honesty and good faith ; California's best-interest / suitability rules apply strongly to annuity and senior sales.
Trap : An agent cannot legally transact until properly appointed by the insurer whose products are being sold — holding a license alone is not enough to write business for a given carrier.