Key Takeaways
- Effective January 1, 2026, California only requires 12 hours of Ethics & CA Insurance Code (AB 943 eliminated the 20-hour line-specific requirement)
- The exam is administered by PSI with a 70% passing score required
- California has strict fingerprinting requirements through Capital Live Scan (CLS)
- Pre-licensing certificate is valid for 3 years; license application fee is $188
- Candidates who fail 10 times are barred from retesting for 12 months
California Life & Health Exam Overview
Welcome to OpenExamPrep's FREE California Life & Health Insurance exam prep guide. This comprehensive resource covers California-specific regulations, licensing requirements, and state insurance laws you need to know to pass your exam.
About the California L&H Exam
The California Life & Health insurance examination is administered by PSI Services LLC on behalf of the California Department of Insurance (CDI). The exam tests your knowledge of:
- California Insurance Code and regulations
- Life insurance principles and coverages
- Health insurance including major medical, disability, and LTC
- Annuities and retirement products
- Ethics and professional conduct
Exam Structure
| Exam Component | Details |
|---|---|
| Testing Provider | PSI Services LLC |
| Regulatory Authority | California Department of Insurance (CDI) |
| Passing Score | 70% or higher |
| Question Format | Multiple choice |
| Test Delivery | Computer-based at testing centers |
| Results | Immediate |
| Registration | test-takers.psiexams.com/cadi |
Important: California does not combine Life and Health into one exam. You must pass each line separately if seeking both.
Major Change: Pre-Licensing Education Requirements (Effective January 1, 2026)
Assembly Bill No. 943 (AB 943) significantly changed California's pre-licensing requirements effective January 1, 2026.
Before January 1, 2026
| License Type | Previous Requirement |
|---|---|
| Life Insurance | 32 hours (20 line-specific + 12 Ethics/Code) |
| Health Insurance | 32 hours (20 line-specific + 12 Ethics/Code) |
| Combined L&H | 52 hours (40 line-specific + 12 Ethics/Code) |
After January 1, 2026 (Current)
| License Type | New Requirement |
|---|---|
| Life Insurance | 12 hours (Ethics & CA Insurance Code only) |
| Health Insurance | 12 hours (Ethics & CA Insurance Code only) |
| Combined L&H | 12 hours (Ethics & CA Insurance Code only) |
Key Points About the Change
- The 20-hour line-specific requirement was eliminated
- Only 12 hours of Ethics & California Insurance Code training is now required
- Must include 1 hour of insurance fraud education
- Education is required BEFORE license issuance, not before the exam
- The exam itself has NOT changed
Exam Tip: You can schedule and take the licensing exam WITHOUT completing the 12-hour Ethics course first. However, you must complete it before your license can be issued.
Pre-Licensing Course Requirements
| Requirement | Details |
|---|---|
| Total Hours | 12 hours |
| Content | Ethics & California Insurance Code |
| Fraud Education | 1 hour included in the 12 hours |
| Certificate Validity | 3 years from completion |
| When Required | Before license issuance (not exam) |
License Application Process
Step-by-Step Process
-
Schedule and Pass the Exam (Can do before education)
- Register with PSI online
- Pay exam fee
- Pass with 70%+ score
-
Complete 12-Hour Ethics Course
- From California-approved provider
- Must include 1 hour of fraud education
- Obtain certificate of completion
-
Complete Fingerprinting
- Required for all unlicensed applicants
- Use CDI's vendor: Capital Live Scan (CLS)
- Background check processed
-
Apply for License
- Submit application to CDI
- Pay $188 license application fee
- Provide all required documentation
-
Receive License
- License issued upon approval
- Begin selling insurance in California
Exam Retake Policy
| Situation | Policy |
|---|---|
| Failed Exam | Can retake with new registration |
| 10 Failed Attempts | Barred from exam for 12 months |
Warning: If you fail an examination 10 times, you are barred from taking that license examination for a 12-month period from the date of your last failed attempt.
License Maintenance
| Requirement | Details |
|---|---|
| CE Hours | 24 hours every 2 years |
| Ethics Hours | Included in total hours |
| License Term | 2 years |
| Renewal | Through CDI |
California Department of Insurance Contact
| Resource | Details |
|---|---|
| Website | insurance.ca.gov |
| Consumer Hotline | 1-800-927-HELP (4357) |
| Producer Licensing | 916-492-3051 |
| licensing@insurance.ca.gov |
What This Guide Covers
This FREE study guide focuses on California state-specific content:
Chapter 1: California Insurance Regulation & Licensing
- California Department of Insurance (CDI) structure and authority
- Producer licensing requirements and continuing education
- California Insurance Code overview
Chapter 2: California Life Insurance Regulations
- California-specific life insurance laws
- Policy requirements and consumer protections
- California Life & Health Insurance Guarantee Association (CLHIGA)
Chapter 3: California Health Insurance Regulations
- Health insurance requirements in California
- Covered California marketplace
- Group and individual health coverage rules
Chapter 4: California Ethics & Consumer Protection
- Fiduciary duties and professional conduct
- Prohibited practices and penalties
- Consumer complaint procedures
Chapter 5: California Annuities & Retirement Products
- Annuity regulations and suitability
- Senior protection requirements
- California-specific disclosure requirements
Chapter 6: California Long-Term Care & Medicare
- LTC insurance requirements
- Medicare supplement regulations
- California Partnership program
Note: This guide covers ONLY California state law. Complete the national Life & Health exam first for foundational knowledge.
California Insurance Market Context
Why California Is Unique
California has one of the largest insurance markets in the world:
-
Market Size
- Largest state insurance market in the U.S.
- Population of nearly 40 million
- Diverse insurance needs across regions
-
Regulatory Approach
- Strong consumer protection laws
- CDI is elected position (Insurance Commissioner)
- Prior approval rate regulation for many lines
-
Covered California
- State-run health insurance marketplace
- Significant health insurance reforms
- Agent certification requirements for marketplace
-
Senior Protections
- Enhanced protections for annuity sales
- Strict LTC insurance requirements
- Anti-fraud enforcement
Understanding AB 943 Impact
What Changed
- Eliminated mandatory 20-hour line-specific pre-licensing courses
- Retained 12-hour Ethics and California Insurance Code requirement
- No change to the licensing exam itself
What Stayed the Same
- Exam content and difficulty unchanged
- 70% passing score required
- Fingerprinting still required
- $188 application fee
Practical Impact
- Faster path to taking the exam
- Lower upfront education costs
- Still need comprehensive exam prep (this guide helps!)
- 12-hour course can be done after passing exam
Next Steps
Ready to begin? Here's your action plan:
- Complete this FREE study guide - Read all 6 chapters
- Take chapter quizzes - Test your knowledge
- Practice with full exams - Aim for consistent 80%+ scores
- Register with PSI - Schedule your exam
- Pass exam - With 70%+ score
- Complete 12-hour Ethics course - Before license issuance
- Complete fingerprinting - Through Capital Live Scan
- Apply for license - Pay $188 fee
Remember: This guide focuses on California-specific content. Supplement with national L&H study materials for comprehensive preparation.
Let's get started with Chapter 1: California Insurance Regulation & Licensing!
As of January 1, 2026, how many hours of pre-licensing education does California require before obtaining a Life & Health license?
Which testing company administers California insurance licensing exams?
What happens if you fail a California insurance exam 10 times?
What is the license application fee in California?