
Starting January 1, 2025, California life agents who sell variable life insurance policies must complete a new two-hour continuing education (CE) course before each license renewal. This requirement, established by Senate Bill 263 (SB 263), adds Section 1749.81(b) to the California Insurance Code and applies to both resident and non-resident agents.
What is a Variable Life Insurance Policy?
A Variable Life Insurance Policy is a type of permanent life insurance that provides both a guaranteed death benefit and an investment component. A Variable Life Insurance Policy allows policyholders to allocate a portion of their premiums to a variety of investment options, such as stocks, bonds, or mutual fund-like sub-accounts. The cash value of the policy fluctuates based on the performance of these investments. Therefore, the policyholder assumes more risk but also has the potential for greater growth. While the death benefit is generally guaranteed at a minimum level, the benefit increases if the investments perform well. This type of policy is best suits individuals who want lifelong coverage and are comfortable managing investment risk. Because of the investment component, variable life insurance is regulated as a securities product. Agents selling variable life insurance must be variable life insurance licensed and licensed with FINRA.
What Is the New Requirement?
Under the new law, life agents authorized to sell variable life insurance policies must complete a two-hour training course specific to these products before each license renewal. This requirement effects licenses issued or renewed on or after January 1, 2025. The training focuses on individual variable life insurance policies and is based on the California Department of Insurance’s (CDI) Bulletin 87-3. Bulletin 87-3 outlines the requirements for issuing variable life insurance in the state.
Who Needs to Comply?
The two-hour variable life insurance training is mandatory for all life agents—both resident and non-resident—who sell variable life insurance policies in California. Including agents licensed before January 1, 2025.
How Does This Fit Into Existing CE Requirements?
For California resident agents, the two-hour variable life insurance course counts toward the 24-hour CE requirement for each two-year license term. However, the two-hour course is a distinct requirement and you must complete in addition to other mandatory courses.
How to Find Approved Courses
To find the appropriate two-hour variable life insurance course:
- Visit our Course Catalog Page.
- Select California
- Select the license category – Life Only/ Life & Health/ Annuity (Reg BI) / Ethics / LTC / AML
- Add course Variable Life Insurance Policies to cart
Why This Matters
The introduction of this specific training requirement underscores the importance that life agents are adequately prepared to sell complex financial products like variable life insurance. By mandating focused education, the CDI aims to enhance consumer protection and ensure that agents have a thorough understanding of the products they offer.
Final Thoughts
Compliance with this new CE requirement is essential for agents to continue selling variable life insurance policies in California. Agents should plan to complete the two-hour course before their license renewal date to avoid any disruptions in their ability to conduct business. Staying informed and proactive about these changes will help ensure a smooth transition and continued compliance with state regulations.
For more information or assistance, agents can contact the CDI’s Curriculum Review Section at CDI.Education@insurance.ca.gov or call (916) 492-3064.
Why Use Success CE
The Success Family of Continuing Education Companies provides the highest quality Life/Health and Property/Casualty Insurance Continuing Education. CFP Continuing Education, CIMA Continuing Education, CPA Continuing Education, CLU/ChFC (PACE) Continuing Education, and MCLE (Legal). Continuing Education available in all 50 states in Live Insurance, Online Insurance, and Textbook Insurance formats. Learn More