California Insurance Sales License: Licensing and Compliance Overview

To obtain a California insurance sales license, you'll need to meet the state's licensing requirements, which include passing a licensing exam and completing a pre-licensing education course.

You must be at least 18 years old and have a high school diploma or equivalent to apply for a California insurance sales license.

The pre-licensing education course must be completed from a provider approved by the California Department of Insurance, and it typically covers topics such as insurance laws, regulations, and ethics.

The licensing exam is administered by the state and tests your knowledge of insurance principles and California insurance laws.

To pass the California licensing exam, you'll need to complete a prelicensing course that's based directly on the exam content. Kaplan's Prelicensing Content is a great option.

The exam is administered by PSI, and you can find exam information and schedule a test by visiting their website at https://test-takers.psiexams.com/.

If you have any questions about scheduling, you can call 877-392-6422 for assistance.

In California, you can sell two main types of insurance: Property & Casualty and Life Insurance.

Property & Casualty insurance protects against financial issues resulting from damage or injury. This type of insurance is essential for Californians who own property or vehicles.

To sell Property & Casualty insurance, you'll need to obtain a license that qualifies you to sell these products in California.

Life and health insurance products can be complex, but understanding the basics can help you make informed decisions.

In California, you can qualify to explain, sell, and write life and health insurance products by obtaining the right license.

This license will give you the authority to assist clients with their life and health insurance needs, including explaining policy options and helping them choose the right coverage.

Property and Casualty insurance is a type of license that qualifies you to sell products designed to protect from financial issues as a result of damage or injury in California.

This license is specifically designed to cover financial losses due to damage or injury, which is a common concern for many people.

In California, Property and Casualty insurance is a vital protection for individuals and businesses alike, helping to mitigate financial risks associated with accidents or property damage.

By obtaining this license, you'll be able to sell products that provide financial protection against unforeseen events, giving your clients peace of mind and financial security.

California has introduced new coverage codes for Surplus Lines filers. These codes are outlined in an attachment that's available for reference.

The new coverage codes aim to provide clarity and efficiency in insurance filing. This is a positive development for those working with Surplus Lines policies.

California's announcement of new coverage codes is a notable update in the insurance industry.

To become a licensed insurance agent in California, you'll need to meet certain requirements. Insurance agents must be licensed to discuss insurance products or complete sales, and failure to do so can result in penalties or legal action.

California requires a license exam, and as of January 1, 2024, there will be changes to the requirements. To prepare, it's essential to complete a prelicensing course.

To complete the prelicensing course, you'll need to meet specific education hour requirements, which vary by line of authority. Here's a breakdown of the required hours:

Note that the 12 hours of Ethics and California Insurance Code can be applied to multiple licenses, and you'll need to track your online study time, complete biodata/security questions, and follow forced progression requirements to successfully complete the course.

To become an insurance agent in California, you'll need to complete a prelicensing course. This course is required by the state and will give you the knowledge you need to pass the licensing exam.

The prelicensing education hour requirements vary depending on the line of authority you're applying for. Here's a breakdown of the required hours:

If you're applying for multiple licenses, you won't need to repeat the 12 hours of Ethics and California Insurance Code.

Insurance agents need to be licensed to discuss insurance products or complete sales, and the requirements can vary by city and state.

Licensing requirements are in place to ensure that agents are knowledgeable and trustworthy in their dealings with clients.

Insurance agents who operate without a license could face penalties or legal action.

In many places, insurance agents must obtain a license before they can start working with clients, and this license typically needs to be renewed periodically.

To become a Limited Line Automobile Insurance Agent, you must hold an active Property Broker-Agent AND Casualty Broker-Agent OR Personal Lines OR a single Limited Lines Automobile Insurance Agent license. This is a requirement for the DRLP.

To become a Travel Insurance Agent, you must ALL actively hold a NONRESIDENT Property Broker-Agent AND Casualty Broker-Agent OR Life-Only Agent AND Accident and Health Agent on PDB. This is a crucial step in the process.

You have 90 days prior to expiration date until the license expiration date to renew your license. If you miss this deadline, late renewal ends one year past expiration date.

As a licensee, you're required to register your branch, but a license isn't necessary. This is an important distinction to keep in mind.

You must notify the Department of Insurance, in writing, of any change in address. This can be done using the Address Change form available on the state's website, which must be completed and signed by the LICENSEE or an officer of the business, general partner, or partnership.

Variable life-specific training requirements have changed in California. Effective January 1, 2025, life agents must complete specified hours of life insurance training courses before selling specified life insurance policies to consumers.

Life agents licensed on or after January 1, 2024, must complete these training courses before selling these policies on or after January 1, 2025. This is a new requirement for these agents.

Any life agent who sells variable life insurance policies must complete specified hours of training before renewing their license. This applies to licenses issued or renewed on or after January 1, 2025.

Language Requirements are changing in California. Starting January 1, 2024, certain license examinations must be provided in multiple languages, including English, Spanish, Simplified Chinese, Vietnamese, and Korean.

These languages are required for the Life Agent, Life - Limited to the Payment of Funeral and Burial Expenses, Disability Analyst, Accident and Health or Sickness Agent, Property Broker - Agent, Personal Lines, Limited Lines Auto, Commercial and Casualty Broker - Agent examinations.

Tagalog will also be added to the list of required languages on July 1, 2024, for the same examinations.

Scheduling for these new license examinations will be available starting on Friday, December 15, 2023.

To get appointed with an insurance company in California, you'll need to complete an application with each company you plan to sell products for and be granted an appointment and binding authority, which is recorded on your state insurance license.

In California, appointments must be submitted within 14 days of first business submission for Life/Health/Annuity lines, or prior to soliciting business for Property/Casualty lines.

If you're selling Life/Health/Annuity products, you can take advantage of Just-In-Time (JIT) appointments, which allow you to submit appointments within 14 days of submitting the first piece of business to the carrier. However, for Property/Casualty lines, appointments must be submitted prior to soliciting business.

If your appointment is terminated, you'll need to renew your license and appointments with the appropriate forms and fees, as there is no grace period on license expiration.

California requires licensees and applicants to report any changes in background information to the California Department of Insurance (CDI) within 30 days of learning about the change.

You'll need to stay on top of this, as California sent a reminder about background check disclosures, and it's your responsibility to keep your information up to date.

California Insurance Code (Cal. Ins. Code) section 1729.2 is the law that governs this requirement, so be sure to familiarize yourself with it.

Some licenses and license qualifications will be converted to comply with PLMA standards, which means your current license may become inactive on May 27, 2022, and new license types will be added to your record.

To get an insurance license in California, you need to pass the state licensing exam. You can schedule your exam through PSI, the exam provider, by visiting their website or calling 877-392-6422.

You'll need to complete a prelicensing course before taking the exam, which can be taken online or in-person. The course requirements vary depending on the line of authority you're applying for, but most require 20-40 hours of training.

In California, you'll need to complete 12 hours of Ethics and California Insurance Code training, which can be exempted if you hold a certain designation or certification.

To apply for your insurance license, you'll need to submit your license application and background check to your state licensing department. Some states may require a background check, which involves fingerprints.

Once you've obtained your licensure, you'll be assigned a National Producer Number (NPN), which is a unique identifier used to track individuals and business entities on a national basis.

Here are the required prelicensing education hours for different lines of authority in California:

Continuing education is a must for insurance professionals in California. As of now, any person who is 70 years of age or older, and has been licensed in good standing for 30 continuous years is exempt from completing continuing education to renew Life and/or Fire & Casualty licenses, but still needs to satisfy the California LTC requirement to sell long-term care insurance.

You'll need to complete an 8-hour initial certification with 4 hours of LTC-specific training each renewal cycle thereafter, which must be specific to California laws, no state equivalents accepted. This applies to all licensees, including resident and nonresident licensees.

P&C insurance licensees selling homeowners insurance must take a one-time state-approved course covering home valuations before transacting business. This is a one-time requirement, not an ongoing one.

Limited lines auto insurance agents have it a bit easier, only needing to complete 20 hours of continuing education. This is a lower requirement compared to other types of insurance licenses.

As of January 1, 2025, California will require resident and nonresident licensees to complete a four-hour annuity training requirement, which will be part of the continuing education requirement. This will apply to all licensees, including those who are exempt from continuing education.

The Surplus Line Association of California has updated their Diligent Search Report Form, effective January 1, 2024. This change reduces content in multiple sections.

The updated form is now available for use, and it's a good idea to review the changes to ensure compliance.

California has updated its requirements for including license numbers in emails, effective January 1, 2024.

The update applies to both Residents and Nonresidents, and requires a licensee's license number to be included in emails involving activity that requires licensure.

The license number must be in a type size that is no smaller than the largest of any phone number, street address, or email address in the email.

For individual licensees, the license number must appear next to or on the line below the individual's name or title.

If the email is sent from an organization, the license number must appear next to or on the line below the organization's name.

Effective January 1, 2024, California is making significant changes to its license exam requirements.

The changes will impact individuals seeking licenses in various professions, and it's essential to familiarize yourself with the new requirements.

According to the latest updates, California is implementing these changes to ensure public safety and protect consumers.

To learn more about the specific changes and how they will affect you, be sure to check the attachment for full details.

California has updated its educational objectives, which now include a required one hour study on insurance fraud, effective March 1, 2023. This change aims to educate professionals about the importance of preventing and detecting insurance fraud.

In California, course providers must now include this additional study in their training programs. This update is part of the state's ongoing efforts to maintain high standards in the industry.

As of March 1, 2023, course providers are expected to comply with this new requirement. This means that any training programs offered after this date must include the one hour study on insurance fraud.

California is removing Non-Uniform questions related to Surplus and Special lines. This change applies to individual entity types.

A business rule is being added, requiring a specific bond to be on file with the state for a license request to be approved.