California Life & Health Insurance Exam 2026

What This License Is

A California Life, Accident & Health (Life & Health) insurance license allows you to sell life insurance, annuities, accident insurance, and health insurance to individuals and businesses in California. It is issued by the California Department of Insurance (CDI) and is required for anyone who solicits, negotiates, or sells these products in the state.

This is a resident producer license. If you live in California and want to sell insurance here, this is the license you need. Once you hold it, you can also apply for non-resident licenses in other states through reciprocity agreements.

The licensing process has four main steps: complete pre-licensing education, get fingerprinted, pass the state exam, and submit your license application through the CDI's FLASH system. This guide walks through each step in detail.

Eligibility Requirements

To apply for a California Life & Health insurance license, you must meet the following requirements:

There is no degree or prior experience requirement. Anyone who meets the age, education, and background check requirements can apply.

Pre-Licensing Education

Before you can take the licensing exam, you must complete a CDI-approved pre-licensing course. The requirements depend on which license you're pursuing:

Courses are available online or in-person from CDI-approved education providers. Online self-paced courses are the most popular option — they typically cost between $30 and $100. You must complete the course within a certain timeframe (usually 6 to 12 months, depending on the provider) and pass a final course exam.

After completing the course, you'll receive a certificate of completion. Your education provider reports your completion to PSI (the exam administrator) electronically. Keep a copy of your certificate — you may need it for your license application.

Your pre-licensing education is valid for 12 months. You must pass the state exam within 12 months of completing your pre-licensing course. If 12 months pass without passing the exam, you'll need to retake the pre-licensing course.

Fingerprinting

California requires electronic (Live Scan) fingerprinting for all insurance license applicants. Your fingerprints are used for a background check through the California Department of Justice and the FBI.

You should get fingerprinted before or shortly after passing your exam. The CDI will not issue your license until your background check clears, and processing can take several weeks.

For insurance license applicants, the CDI contracts with Capital Live Scan to process fingerprints. You can schedule an appointment at a Capital Live Scan location or at many UPS Store locations that offer Live Scan services. The fingerprinting fee is approximately $49 to $75 depending on the location and rolling fee.

When you go, you'll need to bring a valid government-issued photo ID and the correct ORI (Originating Agency Identifier) number for CDI insurance licensing. Capital Live Scan will have this information on file. Your fingerprint results are submitted electronically — you do not need to mail anything to the CDI.

Exam Options

The California insurance licensing exam is administered by PSI. You have three exam options depending on which license you want:

Which should you choose? Most people take the combined Life, Accident & Health exam. It qualifies you to sell all three lines of insurance with a single exam and a single license. There's no cost savings from taking the individual exams, and taking both separately means two exam sessions and two fees.

The Life-Only or Accident & Health Only exams make sense if you only plan to sell one line and want a shorter, more focused test. You can always add the other line later by passing the additional exam.

What the Exam Covers

The combined Life, Accident & Health exam tests your knowledge across the following areas:

The California Insurance Code sections are heavily tested. Roughly 20–30% of the exam focuses on California-specific rules and regulations. This is the area that trips up candidates who use only generic national study materials.

Scheduling Your Exam with PSI

After completing your pre-licensing education, you can schedule your exam through PSI's online portal. You'll need to create a PSI account if you don't already have one.

When scheduling, you'll select:

You can reschedule or cancel your exam appointment up to 2 days before your scheduled date without penalty through your PSI account. Cancellations within 2 days may forfeit your exam fee.

Exam Fees

The exam fee has two components:

Total per attempt: $131. Both fees are paid together when you schedule through PSI's website. Payment is by credit or debit card.

Separately, you'll pay for fingerprinting (~$49–$75) and your license application fee ($188 for an initial 2-year license) after you pass the exam. Budget approximately $400–$450 total for the entire licensing process from start to finish.

In-Person vs. Remote Testing

You have two options for taking the exam:

The exam content, format, time limit, and fee are identical regardless of which option you choose. The remote option is convenient if you don't live near a testing center, but be aware that technical issues (internet drops, webcam problems) can disrupt your session. If you have a reliable setup and a quiet room, remote testing works well.

Exam Day

If testing in person: Arrive at the PSI testing center at least 30 minutes before your scheduled appointment. You'll need to present a valid government-issued photo ID (driver's license, passport, or state ID). The name on your ID must exactly match the name on your exam registration. You'll be given a locker or asked to leave personal belongings outside the testing room — no phones, notes, or study materials are allowed.

If testing remotely: Log into PSI Bridge about 15 minutes before your scheduled time. The proctor will verify your identity via webcam, ask you to show your room and workspace, and then launch your exam. Make sure your phone is out of reach and your desk is completely clear.

The exam is multiple-choice on a computer. You can flag questions to review and navigate back and forth between questions — unlike the DMV test, you are not locked into answering in order. At the end of the allotted time (or when you submit), your score is calculated instantly and you'll see your pass/fail result on screen.

Passing Score

The passing score for all California insurance licensing exams is 60%.

While 60% may sound low compared to other professional exams, the questions are designed to be challenging. The exam includes several nuanced California Insurance Code questions and scenario-based questions that require careful reading. Most successful candidates study for 40–80 hours over 2–4 weeks.

If You Pass

When you pass the exam, you'll see your result on screen immediately. PSI reports your passing score to the CDI electronically, typically by the next business day.

Your next step is to apply for your license through the CDI's FLASH (Fast Licensing Application SelfService Hub) system. You can also apply through Sircon or NIPR (National Insurance Producer Registry).

You must apply within 12 months of passing the exam. If you wait longer than 12 months, your exam results expire and you'll need to retake the exam.

The license application fee is $188 for an initial 2-year license. Your license will not be issued until your fingerprint background check clears — this is why it's important to get fingerprinted early in the process.

If You Fail

If you don't pass, you'll see your score on screen along with a diagnostic report that breaks down your performance by topic area. This report is extremely valuable — it tells you exactly which sections you need to study before retaking the exam.

California allows you to retake the exam up to 10 times within a 12-month period (from the date of your first attempt). However, there are mandatory waiting periods:

Each retake costs $131 ($88 CDI + $43 PSI). Use your diagnostic report to focus your studying. Most candidates who fail do so because of the California Insurance Code sections — if that's where your weak spots are, prioritize those topics.

Applying for Your License

Once you've passed the exam and completed fingerprinting, you're ready to apply for your license. The primary method is through the CDI's FLASH system:

You can also apply through NIPR or Sircon, which are third-party platforms that submit your application to the CDI on your behalf. These services charge a small convenience fee on top of the $188 state fee.

License Types

California insurance producer licenses are categorized by line of authority. When you pass the combined exam, you receive a license with both Life and Accident & Health lines of authority. The main license types relevant to this guide are:

If you plan to sell variable products (variable life insurance or variable annuities), you'll also need FINRA securities licenses (Series 6 or Series 7) in addition to your state insurance license. The state insurance license alone does not authorize you to sell variable products.

Continuing Education

To keep your license active, you must complete 24 hours of continuing education (CE) every 2 years before your license renewal date. Of those 24 hours:

CE courses are available online from CDI-approved providers. Costs vary but typically range from $20 to $60 for a full 24-hour package.

Your initial license renewal is 2 years from your issue date. The renewal fee is $188. If you fail to complete CE or renew on time, your license will lapse. You can reinstate a lapsed license within a certain period by completing CE and paying any back fees, but it's much easier to stay current.

Insurer Appointments

Having a license is necessary but not sufficient to sell insurance. You also need to be appointed by at least one insurance company. An appointment is the formal authorization from an insurer that allows you to represent their products.

Appointments are initiated by the insurance company, not by you. When you join an agency or sign a contract with a carrier, the insurer files an appointment notice with the CDI on your behalf. There is no separate fee for you — the insurer pays the appointment fee.

You can be appointed by multiple insurance companies simultaneously. Many producers are appointed with several carriers to offer a wider range of products to their clients. Your appointment status is visible in the CDI's public license lookup tool.

Study Strategy

Most successful candidates spend 40 to 80 hours studying over a period of 2 to 4 weeks. Here's a proven approach:

Practice Tests

Taking practice tests is the single most effective way to prepare. They help you get comfortable with the question format, identify knowledge gaps, and build confidence before the real exam.

DMV Question Bank practice exams: You can take California insurance practice exams on DMV Question Bank. The practice exams cover all tested topics including life insurance, health insurance, annuities, and the California Insurance Code. Questions are written in the same multiple-choice format as the actual PSI exam.

A good benchmark: if you can consistently score 75% or higher on practice tests, you're likely ready for the real exam. The actual passing score is 60%, so aiming for 75% gives you a comfortable margin.

Common Mistakes

These are the most common reasons candidates fail the California insurance exam:

Quick Reference

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