What the Life, Accident and Health License Covers in California
A life, accident and health insurance license in California authorizes an agent to sell policies covering life insurance, accident insurance, and health insurance. It is issued and regulated by the California Department of Insurance (CDI). Holders may also be eligible to sell supplemental health products, disability income policies, and long-term care insurance, depending on the carrier appointments they receive. This is one of the most common entry-level insurance licenses in the state, because it opens access to a broad range of products without requiring a separate property and casualty license.
- What the Life, Accident and Health License Covers in California
- Who Needs This License
- Pre-Licensing Education Requirements
- The Licensing Examination
- Application and Background Check
- Fees and Costs
- Licensing Timeline
- Continuing Education and Renewal
- License Portability and Dual Lines
- Common Mistakes to Avoid
More from this site
Keep reading the latest coverage
Who Needs This License
Any person who wants to sell, solicit, or negotiate life, accident, or health insurance contracts in California must hold the appropriate license. This applies to independent agents, captive agents working for a single carrier, brokers, and surplus lines agents operating in those lines. The license must be placed in the name of the individual, not the firm, though the individual must be appointed by at least one admitted carrier to transact business.
Pre-Licensing Education Requirements
California requires applicants to complete a specified amount of pre-licensing education before sitting for the examination. The total hours depend on the line of authority:
- Life and Accident and Health (combined): 20 hours of approved pre-licensing education.
- The curriculum must cover ethics, insurance principles, policy structure, underwriting basics, and California-specific regulations.
- Courses must be taken through a CDI-approved pre-licensing provider, either in a classroom or online format.
- Upon completion, the provider issues a certificate of completion, which is required at the time of examination registration.
The Licensing Examination
The exam is administered by PSI Services LLC on behalf of the California Department of Insurance. Key details include:
- Format: Computer-based testing at Pearson VUE or PSI testing centers across California.
- Content: The life and accident and health exam combines general insurance knowledge with California-specific laws and regulations.
- Passing score: Scaled scoring is used; candidates are notified of their result immediately upon completion.
- Retake policy: If an applicant fails, a waiting period applies before the next attempt. Additional fees are required for each retake.
- Identification: Two forms of identification are required at the test center, one of which must be a government-issued photo ID.
Application and Background Check
After passing the exam, the applicant must submit a license application to the CDI. The process includes:
- Fingerprints and a background check conducted by the California Department of Justice and the Federal Bureau of Investigation.
- Disclosure of any criminal history, previous license denials, or disciplinary actions in any state.
- Submission of the application through the California Insurance Producer Services system.
- Payment of the applicable licensing fee, which covers the initial license issuance.
Fees and Costs
| Item | Approximate Cost |
|---|---|
| Pre-licensing education course | $150–$400 |
| Licensing examination fee | $60–$100 |
| State licensing application fee | $100–$175 |
| Background check (fingerprinting) | $50–$100 |
| Total estimated cost | $360–$775 |
Costs vary by provider and testing center. Fees are subject to change; applicants should verify current amounts on the CDI website before beginning the process.
Licensing Timeline
The timeline from starting education to receiving the license typically spans four to eight weeks, depending on how quickly the applicant completes coursework, schedules the exam, passes, and submits the application. Background checks may add additional processing time.
Continuing Education and Renewal
California requires licensed producers to complete continuing education to renew their licenses. Key points:
- CE hours: 24 hours of continuing education every two years for life and accident and health licensees.
- Ethics requirement: At least 3 of the 24 hours must be in ethics.
- Renewal cycle: Licenses renew on a biennial basis, with the renewal notice sent by the CDI before the expiration date.
- Late renewal: Failure to renew on time may result in lapsed licensure, requiring reinstatement procedures.
License Portability and Dual Lines
A California life, accident and health license does not automatically authorize the sale of property and casualty or personal lines insurance. Agents wishing to sell those products must obtain the appropriate additional lines of authority. California participates in the Insurance Producer Licensing Compact, which facilitates multi-state licensing for residents of other states who wish to write business in California.
Common Mistakes to Avoid
- Starting coursework with an unapproved provider, which will not satisfy CDI requirements.
- Missing the background check submission window after passing the exam.
- Allowing the license to lapse without completing renewal CE, which can delay reinstatement.
- Misunderstanding that the license must be tied to carrier appointments to transact actual business.