So many of us are looking for a career that provides us with both freedom and the opportunity to obtain wealth. Becoming an insurance agent is one of the only ways to do this. Selling insurance – in this case, life insurance – opens the door to a rewarding career that not only helps individuals and families protect their financial futures, but also does so in a way that can provide you with a high income and considerable freedom if you do it well.
However, you cannot simply become a life insurance agent. The path to licensure involves specific requirements, exams, and regulatory compliance. The steps to getting a life insurance license have also changed as of January 1st, 2026 as a result of CA Assembly Bill 943 (AB 943) that offers more flexibility in how you obtain your license – but it also comes at a cost.
LyteSpeed Learning offers the courses that help you both obtain your license AND retain it with continuing education courses you are required to take every 2 years. The following walks you through the process of getting your life insurance license, as well as new information about the updated requirements.
NOTE: While this is focused on life insurance, the process to obtain personal lines, property and casualty, and health insurance licenses is essentially the same, and we have classes available for all of these. We are focusing on life insurance since that is often the first type of insurance license that applicants choose to obtain.
About California’s Insurance License Requirements
California’s Department of Insurance (CDI) regulates the licensing process for life insurance agents to ensure that only qualified, knowledgeable professionals enter the industry. The state’s requirements are designed to protect consumers by verifying that agents understand insurance principles, state regulations, ethical practices, and the products they sell.
Perhaps the most important requirement is the passage of the insurance licensing exam.
In the past, prospective life insurance agents were *required* to take 20 hours of timed pre-licensing education courses in order to obtain their license, followed by the insurance licensing exam.
As of 2026, this has changed.
With the passage of AB 943, California has eliminated the mandatory 20-hour pre-licensing education requirement for most insurance licenses, including life insurance. Aspiring life insurance agents are no longer required to complete 20 hours of line-specific coursework before taking their state exam.
The reason that this requirement was eliminated was because there were some that argued that they prefer flexibility in how they learn and how they study. Requiring 20 *timed* hours of insurance prelicensing instruction meant that those that prefer to study in other ways could not do so.
But it’s important to note that the exam is *hard.*
A near majority – estimated to be almost 40 to 50% of all first time test takers – fail the exam the first time.
That’s when the 20 hours of prelicensing classes were required.
Now, with AB 943, many people are going to skim or study poorly, hoping or expecting to pass the exam. The failure rate is likely to go up well above 50%.
Thus, it is very important to understand that pre-licensing courses are still incredibly important, even if they are not required. The state insurance exam remains unchanged – it covers the same material, requires the same level of mastery, and maintains the same passing standards. What has changed is that California now trusts applicants to prepare themselves adequately for the exam, however they choose to do so.
This shift places more responsibility on you to ensure you’re genuinely ready to pass your exam. While the elimination of mandatory coursework offers flexibility for self-motivated learners, it also increases the risk of failure for those who underestimate the exam’s difficulty or skip proper preparation.
With that in mind, the following is the process for becoming a life insurance agent:
Steps to Become a Licensed Life Insurance Agent in California
The process of becoming a licensed life insurance agent in California involves several key steps. While some requirements have changed with AB 943, others remain mandatory and non-negotiable.
- Complete the 12-Hour Code and Ethics Course — This is the only pre-licensing education that California still requires. Every applicant must complete 12 hours of instruction covering California Insurance Code, ethical practices, and state-specific regulations before their license can be issued. This course can be completed online or in-person through a CDI-approved education provider. Do not skip this requirement—without proof of completion, your license application will not be processed, even if you pass your exam.
- Prepare for the State Insurance Exam — Prior to January 1, 2026, life insurance applicants were required to complete 32 hours of pre-licensing education: 20 hours of life-specific coursework and 12 hours of Code and Ethics. Now, the 20-hour requirement is gone, but the exam itself has not changed. You are still responsible for mastering all the material outlined in the CDI’s License Examination Objectives for life insurance, including policy types, underwriting principles, tax considerations, annuities, and state regulations. Our courses at LyteSpeed Learning have some of the lowest failure rates of any insurance course provider, so we encourage you to still obtain our courses to help pass your exam.
- Schedule and Pass Your State Exam — Once you feel prepared, you can schedule your state insurance exam through PSI Services LLC, the CDI’s testing vendor. The exam is computer-based and can be taken at a testing center or online with remote proctoring. The life insurance exam consists of multiple-choice questions covering the topics outlined in the CDI’s Examination Objectives. You must achieve a passing score to move forward with your licensing application. If you do not pass on your first attempt, you can retake the exam, but each attempt requires an additional fee and delays your ability to start working.
- Submit Fingerprints for a Background Check — After passing your exam, you must complete a Live Scan fingerprinting appointment for a background check. California requires all insurance agents to undergo this criminal background screening before licensure. You can find an approved Live Scan location through the CDI website. The fingerprinting fee is separate from your licensing and exam fees.
- Apply for Your Life Insurance License — Once you have passed your exam and completed your fingerprinting, you can submit your license application through the National Insurance Producer Registry (NIPR) or directly through the CDI. Your application will require proof of your Code and Ethics course completion, exam passage, and background check clearance. Make sure you apply for all the authority lines you are eligible to hold. For example, if you plan to sell both life insurance and accident and health (disability and health) products, apply for both lines at the same time. Adding lines later requires additional steps and fees.
- Complete Any Additional Employer or Carrier Requirements — Once you receive your license, your employing agency or insurance carrier may have additional onboarding requirements, such as product training, compliance certification, or contracting processes. These are separate from the state licensing requirements but are necessary to begin selling insurance products.
A supplementary consideration is continuing education. Once licensed, California requires life insurance agents to complete 24 hours of continuing education every two years to maintain their license. This includes at least 3 hours of ethics training. Unlike the new licensing requirements, continuing education has not changed under AB 943—it remains mandatory for all licensed agents.
Why Proper Preparation Still Matters (Even Without Mandatory Coursework)
One of the biggest misconceptions about AB 943 is that eliminating the 20-hour requirement means aspiring agents can skip education entirely and still pass the exam. This is false, and it is a belief that will lead to failure.
The California life insurance exam is comprehensive and challenging. It covers policy structures, underwriting principles, federal and state regulations, tax implications, annuities, retirement planning, and ethical practices. The exam is designed to ensure that only qualified, knowledgeable agents are licensed to sell life insurance products to California consumers.
Even when the 20-hour pre-licensing course was mandatory, many applicants struggled with the exam. Now that the requirement is optional, the pass rate is likely to decrease, not increase. Applicants who skip preparation or rely solely on self-study without a clear plan are setting themselves up for failure.
Here’s what you should do to prepare effectively:
- Review the CDI’s License Examination Objectives — These outlines, available on the CDI website, detail exactly what topics the exam will cover. Read through them carefully so you understand the scope of the material you need to master.
- Enroll in a Quality Exam Prep Course — Even though the 20-hour course is no longer required, comprehensive exam prep courses are still available and highly valuable. Providers like LyteSpeed Learning offer courses that align with the CDI’s Examination Objectives and are designed to help you pass the exam on your first attempt. These courses provide structure, expert instruction, and practice exams to ensure you are fully prepared.
- Create a Study Plan — Without mandatory coursework, you are responsible for creating your own study schedule. Set aside dedicated time each day or week to review material, take practice tests, and reinforce concepts you find challenging.
- Take Practice Exams — Practice exams help you identify weak areas, familiarize you with the exam format, and build your confidence. Do not skip this step. We have several exam prep tools right here at LyteSpeed Learning.
- Complete the 12-Hour Code and Ethics Course Early — Do not wait until after you pass your exam to complete this requirement. Taking it earlier gives you foundational knowledge about California insurance law that will actually help you on your state exam.
For employers and agencies, it is also important to emphasize preparation to new hires. Just because the state no longer mandates the coursework doesn’t mean you should skip it. Encourage or require new agents to complete comprehensive exam prep courses to ensure they pass the exam on their first attempt and are ready to succeed in the field.
Common Mistakes to Avoid When Pursuing Your California Life Insurance License
Aspiring agents often make preventable mistakes during the licensing process that delay their ability to start working or cost them additional time and money. Being aware of these pitfalls can help you navigate the process more smoothly.
- Underestimating the Difficulty of the Exam — Many applicants assume that because the 20-hour requirement is gone, the exam must be easier. This is not true. The exam remains rigorous, and without proper preparation, you are likely to fail. Do not skip studying or rush through the process.
- Skipping the Code and Ethics Course Until the Last Minute — Some applicants wait until after passing the exam to complete the mandatory 12-hour Code and Ethics course. This delays their ability to submit their license application and start working. Complete this course early in your preparation.
- Not Applying for All Eligible Lines — If you plan to sell both life insurance and accident and health products, apply for both lines at the same time. Adding lines later requires additional applications, fees, and administrative steps.
- Ignoring the CDI’s Examination Objectives — These outlines are your roadmap to what the exam will cover. Failing to review them means you may miss critical topics or focus on the wrong material.
- Relying Solely on Self-Study Without Structure — While self-study is possible, most people benefit from structured instruction, expert guidance, and practice exams. Do not overestimate your ability to learn complex material on your own.
- Failing to Complete Fingerprinting Promptly — After passing your exam, complete your Live Scan fingerprinting as soon as possible. Delays in this step will delay your license issuance.
For agency owners, one of the most significant mistakes is assuming that new hires will adequately prepare themselves without guidance or structure. With AB 943 removing mandatory coursework, agencies must take a more active role in ensuring their employees are studying and preparing effectively.
How to Choose the Right Education Provider for Exam Preparation
Even though pre-licensing education is no longer mandatory, choosing a quality education provider for exam preparation is one of the most important decisions you can make. Not all courses are created equal, and selecting the wrong provider can leave you unprepared for the exam.
Here’s what to look for in an exam prep course:
- CDI-Approved Provider — Ensure the provider is approved by the California Department of Insurance. This guarantees that the content is accurate, up-to-date, and aligned with state requirements.
- Comprehensive Coverage of Examination Objectives — The course should cover all the topics outlined in the CDI’s License Examination Objectives for life insurance. Do not settle for a course that only covers part of the material.
- Practice Exams and Study Resources — Look for a provider that offers practice exams, study guides, flashcards, and other resources to reinforce your learning and help you prepare effectively.
- Expert Instruction — Choose a provider with experienced instructors who understand the exam content and can explain complex concepts clearly.
LyteSpeed Learning offers comprehensive exam prep courses designed specifically for California insurance licensing exams. Even though the 20-hour requirement is no longer mandatory, LyteSpeed’s courses provide the structure, instruction, and resources you need to pass your exam on the first attempt and start your career with confidence.
Pass the Exam – Start Your Career
Becoming a licensed life insurance agent in California is a significant professional achievement that opens doors to a rewarding career helping individuals and families protect their financial futures. With the changes brought by AB 943, the licensing process now offers more flexibility—but also requires more personal responsibility in how you prepare for your state exam.
The elimination of the mandatory 20-hour pre-licensing requirement does not mean licensing has become easier. The exam remains rigorous, and proper preparation is essential to passing on your first attempt. By completing the mandatory 12-hour Code and Ethics course, enrolling in a comprehensive exam prep course, reviewing the CDI’s Examination Objectives, and approaching your preparation with discipline and focus, you can successfully navigate the licensing process and launch your insurance career with confidence.
If you are ready to pursue your California life insurance license, or if you are an agency owner looking to support your new hires through this transition, you can find courses right here on our website, or you can reach out to LyteSpeed Learning for more information. LyteSpeed Learning is here to provide the education, resources, and guidance you need to succeed in California’s evolving insurance licensing landscape.
