California requires insurance producers to pass a state licensing exam overseen by the California Department of Insurance (CDI) and administered by PSI. As of January 1, 2026, AB 943 repealed the 20-hour prelicensing education requirement for major lines, though the 12-hour ethics and California Insurance Code course remains. ExamsLib offers free practice questions and study guides to help you prepare.
Overview
Exam Overview
The California Department of Insurance (CDI), through its Producer Licensing Bureau, sets the standards for insurance licensure. Exams are administered by PSI Services LLC at roughly 20 PSI test centers in California plus the CDI exam site in Los Angeles.
The rules changed recently: AB 943 (Chapter 566, Statutes of 2025), effective January 1, 2026, repealed the 20-hour prelicensing education requirement for property, casualty, personal lines, commercial lines, limited lines automobile, life, and accident and health applicants. The 12-hour ethics and California Insurance Code course is still required before a license can be issued, and bail agents and public insurance adjusters still need 20-hour prelicensing.
Scope
License Types
California recognizes several producer license types:
- Life-Only Agent (LO) - Life insurance products.
- Accident and Health or Sickness Agent (AH) - Health and disability products.
- Property Broker-Agent and Casualty Broker-Agent (PR/CA) - Property and casualty lines.
- Personal Lines Broker-Agent (PL) - Personal auto, homeowners, and similar coverage.
Structure
Exam Format
California insurance exams are administered by PSI Services LLC at approximately 20 PSI test centers in California, plus the CDI exam site in Los Angeles. Exams are line-specific, so the content depends on the license type you are pursuing. Check the CDI exam information pages and PSI materials for current formats and scheduling steps.
Score
Passing Score
Passing standards for California insurance exams are set by the CDI for each license type. Confirm the current passing requirement for your line on the CDI exam information pages or with PSI before your exam date.
Eligibility
Requirements
Typical requirements for a California producer license include:
- Completion of the 12-hour ethics and California Insurance Code course before the license can be issued.
- A completed application with the filing fee submitted to the CDI.
- A passing score on the PSI-administered exam for your license type.
- Fingerprinting, with the fee paid separately.
Under AB 943, effective January 1, 2026, the 20-hour prelicensing course is no longer required for major lines; bail agents and public insurance adjusters still need it. Requirements can change. Always confirm current licensing rules with the official state licensing authority before applying.
Cost
Fees
The filing fee is $188 for most producer types (LO, AH, PR/CA, PL) and the examination fee is $55. Renewal costs $188, with late renewal at $282. The fingerprinting fee is separate. Always confirm current fee amounts with the CDI before submitting payment.
Plan Ahead
Study Plan
A focused 4 to 6 week study plan works well for most candidates:
- Week 1-2: Review the fundamentals of Life and Health Insurance and Property and Casualty Insurance for your license line.
- Week 3-4: Work through Insurance Regulations, the California Insurance Code, and ethics material, then take a full-length practice test.
- Week 5-6: Review every missed question, drill weak areas, and simulate exam timing.
Practice topics on ExamsLib cover Life and Health Insurance, Property and Casualty Insurance, Insurance Regulations.
Focus Areas
Study Topics
LI Life and Health Insurance
Study life and health insurance for your licensing exam. Covers term and whole life, annuities, HMO vs PPO, disability income, and key policy provisions.
Study this topicPI Property and Casualty Insurance
Study property and casualty insurance for your licensing exam. Covers homeowners policies, commercial property, liability, auto insurance, and workers' comp.
Study this topicIR Insurance Regulations
Study insurance regulations for your licensing exam. Covers producer licensing, unfair trade practices, cancellation rules, rebating, and insurable interest.
Study this topic
Keep Exploring
Related Pages
Frequently asked questions
Do I still need prelicensing courses for a California insurance license?
Mostly no. AB 943, effective January 1, 2026, repealed the 20-hour prelicensing requirement for property, casualty, personal lines, commercial lines, limited lines automobile, life, and accident and health applicants. The 12-hour ethics and California Insurance Code course is still required, and bail agents and public insurance adjusters still need 20-hour prelicensing.
Who administers the California insurance exam?
PSI Services LLC administers the exams at about 20 PSI test centers in California, plus the CDI exam site in Los Angeles. Licensing itself is overseen by the California Department of Insurance's Producer Licensing Bureau.
How much does the California insurance license cost?
The filing fee is $188 for most producer types and the exam fee is $55. Renewal is $188, or $282 if late, and fingerprinting is billed separately. Fees can change, so confirm current amounts on the CDI licensing fees page.
What continuing education does California require for insurance agents?
The license term is 2 years, with 24 hours of continuing education per term. That total includes 3 hours of ethics as part of, not in addition to, the 24 hours. Confirm the current CE rules for your license type with the CDI.
