California Insurance CE Requirements: What Changed for 2025-2026?
If you hold a California insurance license, your continuing education (CE) requirements just got more complicated. The California Department of Insurance (CDI) has rolled out several new mandatory CE courses for the 2025-2026 renewal cycle—including annuity best interest training, variable life insurance CE, and updated non-term life requirements.
This comprehensive, completely free guide breaks down every CE requirement so you never risk letting your license go inactive.
General CE Requirements at a Glance
Every licensed California insurance agent or broker must complete continuing education on a 2-year renewal cycle tied to your birth month. Here is the baseline requirement:
| Requirement | Details |
|---|---|
| Total CE Hours | 24 hours every 2 years |
| Limited Lines Auto | 20 hours every 2 years |
| Ethics/Anti-Fraud | 3 hours minimum (included in total) |
| Line-of-Authority Hours | 21 hours must be approved for your specific line(s) |
| Renewal Cycle | Every 2 years, based on birth month |
| Renewal Fee | $188 per line of authority |
| Recommended Completion | 60 days before license expiration |
How the 24 Hours Break Down
Out of your 24 total CE hours:
- 3 hours must be Ethics and Anti-Fraud education
- 21 hours must be in courses approved for your line of authority (Life, Accident & Health, Property, Casualty, etc.)
- Up to 25% (6 hours) may be in general CE not specific to your line
Important: No more than 75% of your CE can come from courses provided by the insurance company you are affiliated with. At least 25% must come from independent providers.
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NEW: 4-Hour Annuity Best Interest Standard Training
California adopted the Annuity Best Interest Standard (based on the NAIC model), and the follow-up CE requirement is now active for the 2025-2026 renewal cycle.
| Requirement | Details |
|---|---|
| Course Length | 4 hours |
| Who Must Complete | Any agent selling or soliciting annuity products |
| When Required | Each 2-year renewal cycle (2025-2026 and beyond) |
| Counts Toward | Your 24-hour total CE requirement |
| Replaces | Previous 4-hour Annuity Suitability Training |
What the Annuity Best Interest Training Covers
- The shift from "suitability" to "best interest" standard
- Producer obligations under the new standard (care, disclosure, conflict of interest, documentation)
- Comparison of the old suitability framework vs. the new best interest framework
- Consumer disclosure requirements
- Supervision and compliance obligations
8-Hour Initial Annuity Certification (Critical Deadline)
Under Senate Bill 263, ALL California life producers who sell annuities must complete the 8-hour initial Annuity Best Interest Training:
| Agent Status | Required Training | Deadline |
|---|---|---|
| Newly licensed (after Jan 1, 2025) | 8-hour initial certification | Before soliciting any annuity products |
| Seasoned agents (licensed before Dec 31, 2024) | 8-hour initial Best Interest Training | Must have completed by July 1, 2025 |
| All agents (ongoing) | 4-hour ongoing each renewal cycle | Before each 2-year renewal |
Important for 2026 renewals: If you are an existing agent and missed the July 1, 2025 deadline for the initial 8-hour annuity training, you may be non-compliant. Contact the CDI immediately to verify your status and complete the required training before your renewal date.
NEW (Effective January 1, 2025): 2-Hour Variable Life CE Course
Starting January 1, 2025, California requires a 2-hour CE course specific to variable life insurance for any agent selling or soliciting:
- Variable Life Insurance
- Variable Universal Life Insurance
| Requirement | Details |
|---|---|
| Course Length | 2 hours |
| Who Must Complete | Agents selling variable life or variable universal life |
| Effective Date | January 1, 2025 |
| Frequency | Each renewal cycle |
| Counts Toward | Your 24-hour total CE requirement |
What the Variable Life CE Course Covers
- Characteristics of variable life and variable universal life products
- Investment risks and sub-account options
- Suitability and best interest considerations for variable products
- Consumer disclosure requirements specific to variable contracts
- Coordination with FINRA securities licensing requirements
Note: This is in addition to any FINRA CE requirements you may have for your Series 6 or Series 7 registration. The California 2-hour course is insurance-specific and does not satisfy securities CE.
Non-Term Life Insurance Training (Senate Bill 263)
Senate Bill 263 introduced a one-time 4-hour training requirement for agents selling non-term life insurance products (whole life, universal life, indexed universal life, etc.).
| Requirement | Details |
|---|---|
| Course Length | 4 hours (one-time) |
| Who Must Complete | Agents licensed on or after January 1, 2024 |
| Products Covered | Whole life, universal life, IUL, VUL, and other non-term products |
| Deadline | Must complete before selling non-term life products |
| Counts Toward | Your 24-hour total CE requirement (in the cycle completed) |
This training focuses on:
- Differences between term and non-term life products
- Illustrations and projections for permanent life insurance
- Policy cost disclosures
- Replacement and exchange considerations (1035 exchanges)
- Consumer protection provisions
Long-Term Care (LTC) Insurance CE Requirements
California has some of the most rigorous LTC CE requirements in the nation. If you sell or plan to sell long-term care insurance, here is the full schedule:
| Stage | Requirement |
|---|---|
| Initial Certification | 8-hour LTC training course before selling |
| Years 1-4 (after initial) | 8 hours of LTC CE per year |
| Year 5 and Beyond | 8 hours of LTC CE every 2 years |
Key LTC CE Details
- LTC CE hours count toward your 24-hour total requirement
- Courses must be specifically approved for Long-Term Care
- California Partnership for Long-Term Care products have additional training requirements
- LTC CE must cover topics like benefits, eligibility, claims processes, and consumer protections
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Excess Credit Carryover Rules
What happens if you complete more than 24 hours in a renewal cycle? California allows limited carryover of excess credits:
| Rule | Details |
|---|---|
| Carryover Allowed | Yes, excess hours can carry over once to the next renewal cycle |
| Specialty Credits | Carry over as general CE credits only (not as specialty hours) |
| Ethics Hours | Cannot be carried over—must be earned fresh each cycle |
| Maximum Carryover | No published cap, but specialty hours lose their designation |
Example: If you complete 30 hours in your current cycle, the 6 excess hours carry over to your next cycle as general CE. However, if 4 of those excess hours were in an annuity specialty course, they carry over as general CE—not as annuity-specific credit.
Renewal Timeline and Penalties
Key Renewal Dates
Your California insurance license renews every 2 years based on your birth month. Here is the timeline you need to follow:
| Milestone | Timeframe |
|---|---|
| Start completing CE | As early as you want during the 2-year cycle |
| Recommended completion | 60 days before expiration |
| License expiration | Last day of your birth month |
| Grace period | None — license goes INACTIVE on expiration |
| Reinstatement window | Up to 1 year from expiration |
| After 1 year expired | Must re-take licensing exam and start from scratch |
What Happens If You Miss the Deadline?
There is no grace period. If you fail to complete all required CE and pay the $188 renewal fee by your expiration date:
- Your license immediately goes INACTIVE
- You cannot sell, solicit, or negotiate any insurance products
- You have up to 1 year to complete CE and reinstate
- If more than 1 year passes, you must re-take the licensing exam and go through the entire licensing process again
- There may be additional reinstatement fees on top of the standard $188
Pro tip: Complete your CE at least 60 days early. This gives you a buffer for any processing delays and ensures you never accidentally lapse.
Special CE Requirements by Product Line
Beyond the general 24-hour requirement, certain product lines have their own mandatory training:
| Product Line | Special CE Requirement |
|---|---|
| Annuities | 4-hour Best Interest Standard (ongoing) + 8-hour initial for new agents |
| Variable Life/VUL | 2-hour Variable Life CE (new, effective Jan 2025) |
| Non-Term Life | 4-hour one-time training (SB 263, agents licensed after Jan 1, 2024) |
| Long-Term Care | 8 hours initial, then 8 hrs/year (years 1-4), then 8 hrs/every 2 years |
| Flood Insurance | Separate FEMA-approved training if selling NFIP policies |
| Workers Compensation | Additional specialty CE required for workers comp line |
| Surplus Lines | Separate CE requirements for surplus lines brokers |
The 75% Company-Provided CE Cap
California limits how much of your CE can come from your affiliated insurance company:
- Maximum 75% of CE hours can be company-provided (employer or appointed insurer)
- Minimum 25% must come from independent CE providers
- This applies to your total 24-hour requirement
- In practice: No more than 18 hours from your company, at least 6 hours from outside providers
This rule ensures agents receive education that is not solely product-focused and includes broader industry knowledge.
Complete CE Checklist for 2025-2026 Renewal
Use this checklist to make sure you have covered everything before your renewal date:
All California Insurance Agents:
- 24 total CE hours (20 for Limited Lines Auto)
- 3 hours of Ethics/Anti-Fraud
- 21 hours approved for your line of authority
- No more than 75% from company-provided courses
- $188 renewal fee per line of authority
Annuity Agents:
- 4-hour Annuity Best Interest Standard training (or 8-hour initial if newly certified)
Variable Life/VUL Agents:
- 2-hour Variable Life CE course
Non-Term Life Agents (licensed on/after Jan 1, 2024):
- 4-hour Non-Term Life Insurance training (one-time, SB 263)
Long-Term Care Agents:
- 8 hours LTC CE per year (years 1-4) or 8 hours per 2 years (year 5+)
How to Find CDI-Approved CE Courses
- Visit the California Department of Insurance website at insurance.ca.gov
- Navigate to the Continuing Education section under Licensing
- Search for approved courses by line of authority and specialty
- Verify the course is approved for the specific requirement you need (e.g., Annuity Best Interest, Variable Life, Ethics)
- Keep certificates of completion for at least 5 years as proof
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