California Life & Health Insurance License Exam Overview
The California Life & Health Insurance License Exam is your gateway to selling life insurance, health insurance, and related products in the Golden State. Administered by the California Department of Insurance (CDI), this exam ensures you have the knowledge to serve California consumers ethically and competently.
California has one of the largest insurance markets in the nation—passing this exam opens doors to significant earning potential.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 150 multiple-choice |
| Scored Questions | 150 |
| Time Limit | 3 hours |
| Passing Score | 60% (90 correct answers) |
| Testing Vendor | PSI Services |
| Exam Fee | $92 |
| Pre-licensing Education | 52 hours required |
Why Get Licensed in California?
- Largest state market — Over 39 million potential clients
- High earning potential — Average insurance agent salary exceeds $70,000
- Growing demand — Healthcare changes drive need for knowledgeable agents
- Diverse product opportunities — Life, health, disability, long-term care
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Key Topics Covered on the Exam
1. Life Insurance Fundamentals (25-30%)
Types of Life Insurance:
- Term Life (level, decreasing, renewable, convertible)
- Whole Life (ordinary, limited pay, single premium)
- Universal Life (flexible premiums, adjustable death benefit)
- Variable Life (securities-based, requires additional licensing)
Policy Provisions:
| Provision | California Requirement |
|---|---|
| Grace Period | 30 days minimum |
| Incontestability | 2 years |
| Suicide Clause | 2 years |
| Free Look Period | 30 days |
| Reinstatement | 3 years |
2. Health Insurance Fundamentals (25-30%)
Major Medical Coverage:
- Deductibles, copays, coinsurance
- Out-of-pocket maximums
- Network types (HMO, PPO, EPO, POS)
- Essential health benefits under ACA
California-Specific Health Topics:
- Covered California marketplace
- California Partnership for Long-Term Care
- Mental Health Parity Act compliance
- AB 72 surprise billing protections
3. Annuities (15-20%)
- Fixed vs. variable annuities
- Immediate vs. deferred annuities
- Accumulation and annuitization phases
- California annuity suitability requirements
- Free look period: 30 days in California
4. California Insurance Code and Regulations (20-25%)
Key California Laws:
- Unfair trade practices
- Replacement regulations
- Advertising guidelines
- Privacy laws (California Consumer Privacy Act)
- Anti-discrimination requirements
Licensing Requirements:
- Pre-licensing education: 52 hours
- Continuing education: 24 hours every 2 years
- Background check required
- Fingerprinting required
5. Ethics and Producer Responsibilities (10-15%)
- Fiduciary duty to clients
- Needs analysis and suitability
- Disclosure requirements
- Handling premiums
- Reporting misconduct
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1-2 | Life insurance products and provisions | 15-20 |
| Week 2-3 | Health insurance and ACA | 15-20 |
| Week 3-4 | Annuities and retirement products | 10-12 |
| Week 4-5 | California regulations and ethics | 10-12 |
| Week 5-6 | Practice exams and review | 15-20 |
Total recommended study time: 65-85 hours
🎯 Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the California Life & Health exam.
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California-Specific Exam Tips
1. Know Your California Laws
The exam heavily tests California-specific regulations:
- AB 72 — Surprise billing protections
- California Consumer Privacy Act — Privacy requirements
- Covered California — State exchange rules
2. Master the Numbers
| Topic | Number to Remember |
|---|---|
| Grace period | 30 days |
| Free look period | 30 days |
| Incontestability | 2 years |
| CE requirement | 24 hours/2 years |
| Pre-licensing | 52 hours |
| Passing score | 60% |
3. Understand Covered California
The state health insurance marketplace is unique to California. Know:
- Enrollment periods
- Subsidy qualifications
- Plan metal tiers (Bronze, Silver, Gold, Platinum)
- Medi-Cal coordination
Common Mistakes to Avoid
- Underestimating California regulations — They're heavily tested
- Skipping health insurance — It's equal weight to life insurance
- Ignoring annuity suitability — California is strict on this
- Not practicing with timed exams — Time management matters
- Cramming — Spread study over 4-6 weeks
After Passing Your Exam
- Apply for license through California DOI
- Complete fingerprinting at LiveScan location
- Pay license fee — $188 for resident license
- Affiliate with insurance company or agency
- Begin selling — Your license is good for 2 years
2026 California Updates
For 2026, be aware of:
- Updated DMHC regulations
- New telehealth coverage requirements
- Enhanced consumer protection rules
- Modified CE requirements
Start Your California Insurance Career Today
The California Life & Health license opens doors to one of the nation's largest insurance markets. With proper preparation, you can pass the exam on your first attempt.
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Our free study materials include:
- ✅ Complete topic coverage
- ✅ Practice questions with explanations
- ✅ California-specific regulations
- ✅ Study guides and summaries
- ✅ AI-powered study assistance
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