The Life-Only Agent license allows individuals to transact life insurance products, including annuities, within California. This license is overseen and regulated by the California Department of Insurance (CDI), which sets standards for professional competency. Obtaining this license requires navigating administrative, educational, and testing requirements designed to ensure consumer protection and agent readiness.
Basic Prerequisites for Licensing
Prospective agents must meet foundational eligibility standards mandated by California. Applicants must be at least 18 years old and must be a resident of California or maintain a place of business in the state. The CDI requires applicants to demonstrate suitable character regarding their personal and professional history. Certain past criminal convictions, especially those related to financial dishonesty or fiduciary breaches, can disqualify an individual from obtaining a license.
Complete Mandatory Pre-Licensing Education
Applicants must complete 32 hours of mandatory pre-licensing education through a CDI-approved provider before sitting for the state examination. The 32 hours are divided into two components. Twenty hours must focus on life insurance products, concepts, and policy provisions. The remaining 12 hours must cover ethics in insurance and the California Insurance Code. Upon successful completion, the provider issues a certificate demonstrating eligibility for the licensing examination.
Passing the State Licensing Examination
After finishing the required coursework, the applicant must register for the official state licensing examination administered by PSI Services, LLC. Candidates schedule their appointment through the PSI website and must present valid photo identification at the testing center. The Life-Only Agent examination is a comprehensive, multiple-choice test assessing knowledge of insurance principles and California-specific laws. A passing score of 60% or higher is required. If unsuccessful, candidates must wait a specified period before scheduling a retake, which requires a new fee.
Undergo Background Check and Fingerprinting
A mandatory part of the licensing process involves undergoing a thorough background check conducted by both the California Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI). This check is initiated by submitting fingerprints electronically through a process known as Live Scan. Applicants must locate an authorized Live Scan vendor and provide the correct forms and codes specific to the CDI licensing requirement. The fingerprint results are transmitted directly to the DOJ and FBI for comparison against criminal databases. The CDI reviews the results to determine if the applicant has a history that might disqualify them from holding a license, particularly focusing on convictions involving fraud, deceit, or misappropriation of funds.
Submitting the License Application to the CDI
With the educational and examination requirements successfully completed, the final administrative step is to formally submit the license application to the California Department of Insurance. The application is typically filed online through the CDI’s Sircon or National Insurance Producer Registry (NIPR) portals. A non-refundable application fee must be paid at the time of submission. Applicants must confirm that they have completed the required pre-licensing education hours and passed the state examination, as the CDI system verifies these records electronically. The CDI will only issue the license once it has received confirmation of the exam passage and a clear background check report.
Maintaining Your California Life Insurance License
Once the Life-Only Agent license is granted, the agent must adhere to ongoing requirements to keep the license active and in good standing. Licenses are typically issued for a two-year period, requiring renewal before the expiration date and payment of the required renewal fee. License maintenance mandates the completion of Continuing Education (CE) requirements. Licensed agents must complete 24 hours of approved CE during each two-year license period, including four hours dedicated to ethics. Agents are also required to promptly notify the CDI of any changes to their business or residency address. Failure to fulfill the CE requirements or to renew the license on time will result in the license lapsing.