How to Get and Maintain a California State Life and Health Insurance License

What Is a California Life & Health Insurance License?

A California Life & Health Insurance License authorizes an individual to sell life, annuity, health, and disability insurance products within the state. The license is issued by the California Department of Insurance (CDI) and is required for agents, brokers, and independent producers who want to conduct business legally.

Key Requirements Before You Apply

Before you begin the application, you must meet four core prerequisites:

• Be at least 18 years old.
• Hold a clean criminal record (no felony convictions related to fraud or theft).
• Complete the required pre‑licensing education.
• Pass the state licensing exam.

Step‑by‑Step Process to Obtain the License

1. Complete Pre‑Licensing Education

California mandates 20 hours of approved coursework covering both life and health insurance topics. Courses can be taken online or in‑person through CDI‑approved providers. Upon completion you'll receive a certificate of completion, which you'll upload during the application.

2. Create an Account on the CDI eLicensing System

Visit CDI eLicensing and register as a new user. The platform is where you'll submit your application, upload documents, and schedule the exam.

3. Submit the License Application

Log in, select "Apply for a New License," and choose the "Life & Health" line of authority. Upload your education certificate, provide personal details, and pay the non‑refundable filing fee ($65 as of 2024).

4. Schedule and Pass the State Exam

The exam is administered by Pearson VUE. It consists of 150 multiple‑choice questions, with a passing score of 70%. You have 3 hours to complete it. Study guides and practice exams are available from the CDI and third‑party providers.

5. Fingerprinting and Background Check

After passing the exam, you'll be prompted to submit fingerprints through the Live Scan system. The cost is typically $50‑$60, and results are reviewed within 2‑4 weeks.

6. Receive Your License

Once the background check clears, the CDI will issue your license electronically. You'll receive a PDF certificate and can begin selling life and health insurance products.

Renewal and Continuing Education

California licenses are valid for two years. Renewal requires:

• Completion of 24 hours of continuing education (CE) every renewal period, including 3 hours of ethics.
• Payment of the renewal fee ($115 in 2024).
• Submission of the renewal application before the expiration date.

Failure to renew on time results in a 30‑day grace period with a late fee; beyond that, the license is suspended.

Costs Overview

Common Questions & Answers

• Can I sell both life and health insurance with one license? Yes. The "Life & Health" license covers all products in both lines of authority.
• Do I need a separate license for annuities? Annuities fall under the life insurance line; no extra license is required.
• What if I move to another state? You must obtain a license in the new state. Some states have reciprocity agreements, but you'll still need to apply and meet local requirements.
• How long does the entire process take? Typically 4‑8 weeks, depending on exam scheduling and background‑check turnaround.

Maintaining Compliance and Avoiding Penalties

Beyond renewal, agents must adhere to CDI regulations:

• Maintain accurate records of all policies sold for at least five years.
• Report any disciplinary actions or criminal convictions within 30 days.
• Stay current with changes to California insurance statutes; the CDI issues bulletins quarterly.

Resources and Helpful Links

• California Department of Insurance – Licensing Center: https://www.insurance.ca.gov/
• CDI Approved Pre‑Licensing Providers: https://www.insurance.ca.gov/producer/education/
• Pearson VUE Exam Scheduling: https://home.pearsonvue.com/
• Live Scan Fingerprinting Locations: https://www.cdcr.ca.gov/