California Repeals 20-Hour Insurance Prelicensing (AB 943) – 2026 Licensing Guide

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Effective January 1, 2026, CDI will officially eliminate the long-standing California 20-hour prelicensing education requirement for insurance producers.

This major regulatory update, established under AB 943 (Chapter 566, Statutes of 2025), reshapes the path to licensure for new agents across Life, Health, Property, Casualty, Personal Lines, Commercial Lines, and Limited Lines Automobile.

However, one part of the process does not change:

All applicants must still complete the mandatory 12-Hour Ethics & California Insurance Code course and pass the full state licensing exam.

This Ultimate Guide provides the most complete and authoritative breakdown of what is changing, what is staying the same, and how California insurance candidates and agencies should prepare for 2026 and beyond.

Table of Contents

  1. What AB 943 Means for California Insurance Licensing in 2026
  2. Key Changes at a Glance (Quick Summary for 2026)
  3. Why California Removed the 20-Hour Prelicensing Requirement
  4. What the California 20-hour pre-licensing repeal changes on January 1, 2026
  5. What Requirements Stay the Same for California Licensing
  6. How to Get Your California Insurance License in 2026 (Step-by-Step)
  7. How the California 20-hour pre-licensing repeal affects Life & Accident & Health
  8. 2026 Transition Timeline: What Happens to Old Courses
  9. California Prelicensing Requirements: 2025 vs. 2026 Comparison
  10. Frequently Asked Questions About the 2026 Prelicensing Changes
  11. What These Changes Mean for Agencies, Carriers, and Hiring Managers
  12. How New Applicants Should Prepare for Licensing in 2026
  13. Final Thoughts and Next Steps for California Insurance Applicants

1. What AB 943 Means for California Insurance Licensing in 2026

Assembly Bill 943, signed into law on October 10, 2025, updates California Insurance Code §1749 and directly removes the 20-hour line-specific prelicensing education blocks for all major insurance producer licensing types.

Beginning January 1, 2026:

  • The 20-hour prelicensing requirement is fully repealed.
  • The 12-Hour Ethics & California Insurance Code requirement remains mandatory.
  • The state licensing exam continues for every line of authority.
  • Fingerprinting remains required after exam passage.

Existing 20-hour, 32-hour, and 52-hour courses will be removed from CDI’s public course search on January 1, 2026, and inactivated January 12, 2026.

2. Key Changes at a Glance (Quick Summary for 2026)

RequirementStatus in 2026Notes
20-Hour PrelicensingRepealedEliminated by AB 943
12-Hour Ethics & California Insurance CodeRequiredMust be completed by all producer applicants
State Licensing ExamRequiredUnchanged requirement
FingerprintingRequiredMust occur after passing the exam
Applies ToLife, A&H, Property, Casualty, Personal Lines, Commercial Lines, Limited Lines Auto
Not AffectedBail agents; public adjustersTheir 20-hour requirement remains

These changes come directly from CDI’s November 2025 notice and AB 943 implementation guidance.

3. Why California Removed the 20-Hour Prelicensing Requirement

California modernized its licensing pathway to:

  • Remove barriers to entry for new producers
  • Streamline the licensing timeline
  • Prioritize competency through Ethics & Code and exam performance
  • Align with evolving national standards for producer onboarding

The Legislature determined that the 12-Hour Ethics requirement + the state exam serve as adequate competency benchmarks without the need for additional 20-hour blocks.

4. What the California 20-hour pre-licensing repeal changes on January 1, 2026

A. The California 20-Hour Prelicensing Courses Are No Longer Required

CDI will no longer recognize or display the following course types:

  • 20-Hour line-specific courses
  • 32-Hour (20 + 12 Ethics) blended courses
  • 52-Hour (two lines + Ethics) courses
  • Life
  • Accident & Health or Sickness
  • Property
  • Casualty
  • Commercial Lines
  • Personal Lines
  • Limited Lines Automobile

These are removed from public catalog on January 1, 2026 and inactivated on January 12, 2026.

Applies to applicants seeking:

  • Life
  • Accident & Health or Sickness
  • Property
  • Casualty
  • Commercial Lines
  • Personal Lines
  • Limited Lines Automobile

5. What Requirements Stay the Same for California Licensing

A. 12-Hour Ethics & California Insurance Code Requirement

All new resident producer applicants must continue to complete the state-mandated:

12 hours of Ethics and California Insurance Code training
(includes the 1-hour antifraud component required since 2023)

B. State Licensing Exam Remains Mandatory

Applicants must still:

  • Study the official License Examination Objectives
  • Register with PSI
  • Pass the exam for each selected line of authority

C. Fingerprinting & Application Sequence

Fingerprinting must be completed after passing the exam, before the license is issued.

D. No Change for Bail Agents or Public Adjusters

Their 20-hour requirement remains fully intact.

6. How to Get Your California Insurance License in 2026 (Step-by-Step)

Beginning January 1, 2026, your licensing process becomes more streamlined. Here is the updated path:

Step 1: Choose your line(s) of authority

  • Life
  • Accident & Health or Sickness
  • Property
  • Casualty
  • Personal Lines
  • Commercial Lines
  • Limited Lines Auto

Step 2: Complete the 12-Hour Ethics & Code Prelicensing Course

This is now the only educational requirement prior to the exam.

Step 3: Prepare for the State Exam

Use the CDI exam objectives and reputable exam prep solutions.

Step 4: Pass the State Licensing Exam

You must still pass the full exam for each line.

Step 5: Get Fingerprinted & Submit Your Application

Your exam pass is valid only after fingerprint clearance and application submission. These steps come directly from CDI’s 2026 licensing guidance.

7. How the California 20-hour pre-licensing repeal affects Life & Accident & Health

Life & Accident & Health

  • 20-Hour Life and 20-Hour A&H courses repealed
  • Only 12-Hour Ethics & Code required
  • Must pass the Life and/or A&H state exam(s)

Property & Casualty

  • 20-Hour Property and 20-Hour Casualty repealed
  • Combined P&C previously required 40 hours + Ethics; now only Ethics is required
  • Must pass the P&C exams

Personal Lines, Commercial Lines, and Limited Lines Auto

  • All 20-hour prelicensing blocks eliminated
  • Ethics still required
  • State exam still required

Unaffected License Types

  • Bail agents
  • Public insurance adjusters

These continue to require 20 hours of education.

8. 2026 Transition Timeline: What Happens to Old Courses

Through December 31, 2025

Providers may continue delivering all previously approved courses.
Rosters must be uploaded within 10 days of completion.

January 1, 2026

CDI removes 20-hour, 32-hour, and 52-hour courses from its online catalog.

January 1-11, 2026

Providers may continue uploading rosters for 2025 completions.

January 12, 2026

CDI officially inactivates all 20/32/52-hour courses.
No further roster uploads will be accepted.

9. California 20-hour Prelicensing Requirements: 2025 vs. 2026 Comparison

License TypeBefore January 1, 2026After January 1, 2026
Life20 Hours + 12 Ethics12 Ethics only
Accident & Health20 Hours + 12 Ethics12 Ethics only
Property20 Hours + 12 Ethics12 Ethics only
Casualty20 Hours + 12 Ethics12 Ethics only
P&C Combined40 Hours + 12 Ethics12 Ethics only
Personal Lines20 Hours + 12 Ethics12 Ethics only
Commercial Lines20 Hours + 12 Ethics12 Ethics only
Limited Lines Auto20 Hours + 12 Ethics12 Ethics only
Bail Agents20 Hours20 Hours (unchanged)
Public Adjusters20 Hours20 Hours (unchanged)

10. Frequently Asked Questions About the 2026 Prelicensing Changes

1. What happened to California 20-hour prelicensing requirement?

It was repealed under AB 943, effective January 1, 2026.

2. Do I still need prelicensing education in 2026?

Yes. All applicants must complete the 12-Hour Ethics & California Insurance Code course.

3. Do I still need to pass the state exam?

Yes. The exam remains fully mandatory for all lines.

4. What happens to existing 20-hour courses?

They will be removed from CDI’s public course search on January 1, 2026, and officially inactivated on January 12, 2026.

5. Does the repeal affect bail agents or public adjusters?

No. Their 20-hour requirement remains unchanged.

6. Do I still need fingerprinting?

Yes. Fingerprinting is required after exam passage and before licensure.

11. What These Changes Mean for Agencies, Carriers, and Hiring Managers

This regulatory shift impacts hiring pipelines, onboarding workflows, and internal training expectations.

Key impacts:

  • Faster onboarding for new hires
  • Reduced friction for prospective producers
  • More emphasis on exam preparation
  • Agencies must update internal documentation
  • Strict Ethics compliance remains essential
  • Vendors and carriers must update LMS workflows and contracts

The Ethics requirement becomes the single standardized prelicensing education component, placing more weight on selecting a reputable provider.

12. How New Applicants Should Prepare for Licensing in 2026

A. Enroll in the 12-Hour Ethics & Code Course

Since this requirement does not change, completing Ethics early ensures you are exam-ready as soon as the new rules take effect.

B. Begin Exam Preparation

Use resources aligned with CDI’s License Examination Objectives.

C. Monitor CDI updates

CDI may release additional guidance as January approaches.

D. Start the fingerprinting process immediately after passing your exam

13. Final Thoughts and Next Steps for California Insurance Applicants

California’s adoption of AB 943 marks the largest modernization of producer licensing in decades.
By removing the 20-hour prelicensing blocks while preserving Ethics education and exam rigor, the state has created a streamlined pathway that benefits both applicants and agencies.

In 2026 and beyond, your required steps are simple:

  1. Complete the 12-Hour Ethics & California Insurance Code course
  2. Prepare for and pass the state licensing exam
  3. Get fingerprinted and submit your application

Success CE is ready to support candidates and agencies with approved Ethics training and comprehensive prelicensing preparation.

For official updates, visit the California Department of Insurance.

California 20-hour pre-licensing repeal AB 943 infographic

Learn More About Success Prelicensing, powered by Success CE, Inc.

Start the required 12-Hour Ethics & California Insurance Code course today!

Your licensing journey begins here.

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Key Insurance Regulatory Updates in 2025

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The insurance industry is no stranger to regulatory change, and 2025 has already brought a wave of updates at both the federal and state level. From healthcare reforms to property and casualty adjustments, regulators are tightening oversight and responding to evolving risks. Below is a summary of the most significant updates—and what they mean for insurance professionals.

Federal Health Insurance and ACA Reforms

The Centers for Medicare & Medicaid Services (CMS) finalized the Marketplace Integrity and Affordability Rule in 2025, introducing several key changes to strengthen oversight of the Affordable Care Act (ACA) marketplaces.

Highlights include:

  • Stricter Verification: Enhanced income verification and pre-enrollment checks for special enrollment periods (SEPs) to reduce misuse.
  • Eligibility Adjustments: DACA recipients will no longer qualify as “lawfully present” for marketplace and Basic Health Program eligibility.
  • Enrollment Windows: Open enrollment will now run from November 1 through December 15 for the 2027 plan year on federal exchanges.
  • Premium Payment Requirement: Individuals automatically re-enrolled in zero-premium plans will now need to pay a minimum $5 monthly premium.
  • Tax Credit Reconciliation: Rules around advance premium tax credits (APTCs) have tightened, with consequences for those failing to reconcile past credits.

The Notice of Benefit and Payment Parameters for 2025 introduced consumer-friendly adjustments, aiming to improve plan choice, expand access, and strengthen marketplace standards.

Impact: For insurers and brokers, these changes mean more administrative oversight, stricter compliance, and potential adjustments to plan design and marketing strategies.

State-Level Insurance Developments

California

California has taken the lead with several regulatory shifts:

  • Auto Insurance: Minimum liability coverage limits doubled in 2025, rising to $30,000 per person / $60,000 per accident for bodily injury, and $15,000 for property damage. These limits will rise again in 2035.
  • Wildfire and Climate Risk: New rules require insurers to incorporate catastrophe modeling into rate filings and expand coverage options in wildfire-prone areas. Reinsurance cost pass-throughs will also face stricter oversight.

North Carolina

Regulators approved a 5% auto insurance rate increase effective October 1, 2025—far below the much larger hikes initially sought by carriers.

Alabama

A new law allows Alfa Insurance to offer alternative health plans exempt from certain ACA protections. The new law also includes preexisting condition coverage requirements. While promoted as affordable options, critics warn consumers may lose critical safeguards.

Illinois

Illinois is preparing to launch its own state-based health insurance marketplace, moving away from Healthcare.gov beginning in 2026.

Impact: These shifts highlight the growing divergence among states—some expanding protections, others pulling back federal safeguards. Insurers operating across state lines must remain vigilant about varying compliance obligations.

NAIC and Industry-Wide Priorities

The National Association of Insurance Commissioners (NAIC) has laid out its 2025 priorities, reaffirming its commitment to state-based regulation and improved risk oversight. Key initiatives include:

  • A new Risk-Based Capital (RBC) Model Governance Task Force to review capital standards and better account for catastrophe risk, reinsurance, and market consolidation.
  • Development of a U.S. version of the Global Insurance Capital Standard, with a draft expected by 2026.
  • Updated asset adequacy and reinsurance guidelines to improve transparency and strengthen solvency protections.

Impact: These measures signal increasing scrutiny on carriers’ capital adequacy and risk management frameworks. The measures apply to both large insurers and smaller regional players.

What This Means for Insurance Professionals

Taken together, these regulatory updates underscore several key trends:

  • Compliance is Tightening: Expect more detailed verification, stricter reporting, and less tolerance for administrative errors.
  • Pricing Pressures Are Rising: Higher liability minimums, climate modeling, and capital requirements will directly impact rate filings and underwriting strategies.
  • Consumer Access Is Evolving: Some reforms aim to expand choice and affordability, while others could create gaps in coverage—leaving room for brokers and agents to guide clients carefully.
  • Regulators Are Proactive: Both federal and state regulators are signaling a more hands-on approach to ensuring solvency, sustainability, and fairness.

Final Thoughts

For insurance professionals, the lesson is clear: staying ahead of regulatory change is no longer optional. These new rules will affect everything from product design to client conversations, and the ability to adapt quickly will set successful agents, brokers, and carriers apart.

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

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P&C Insurance in a Warming World

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Property and casualty (P&C) insurers are facing an undeniable reality—climate change is no longer a distant risk, it’s a daily business challenge. Wildfires, hurricanes, floods, and severe storms are happening with greater frequency and severity, driving losses to record levels. For insurers, this means higher claims, rising reinsurance costs, and difficult decisions about where and how to provide coverage. For policyholders, it often translates into higher premiums—or in some regions, limited availability of coverage altogether.

To meet these challenges, the industry is moving toward three key solutions: parametric insurance, climate-resilient underwriting, and community-driven resilience programs.

1. Parametric Insurance: Speed and Certainty in a Crisis

Unlike traditional insurance, which pays out after adjusters assess the actual damage, parametric insurance provides payouts triggered by predefined events. For example, if wind speeds reach a certain threshold during a hurricane, or rainfall exceeds a set level in a flood-prone area, the policyholder receives a payout—regardless of the actual damage.

This model delivers two major advantages:

  • Speed: Payouts can be issued within days, helping policyholders recover quickly.
  • Transparency: Policyholders know exactly what event will trigger a claim, reducing disputes.

Parametric coverage is especially appealing in regions where natural disasters are frequent and traditional insurance has become costly or limited. We are even seeing pilot programs in wildfire-prone communities where group parametric policies offer lower premiums and deductibles than standard options.

2. Resilience Incentives: Rewarding Risk Mitigation

Insurers increasingly recognize that preventing losses is as important as covering them. That’s why many carriers are offering incentives for property owners and communities that adopt resilience measures.

Examples include:

  • Discounts for homes built or retrofitted to FORTIFIED standards, which improve resistance to wind and water damage.
  • Premium credits for properties in Firewise USA® communities, where residents work collectively to reduce wildfire risk.
  • New partnerships with tech firms providing real-time monitoring—like water-leak sensors or wildfire risk alerts—to help stop damage before it starts.

This shift toward resilience not only reduces claims but also strengthens insurer-customer relationships by showing that carriers are active partners in risk management.

3. Building Sustainable Insurance Models

The hardest-hit markets, like California and Florida, show what happens when climate risk collides with affordability and availability. In some areas, homeowners have turned to state-backed “last resort” programs as private insurers scale back.

To maintain a sustainable market, insurers are:

  • Integrating advanced catastrophe modeling and geospatial data into underwriting.
  • Passing reinsurance costs transparently to consumers under new regulatory frameworks.
  • Exploring alternative risk transfer methods like captives and community-based pools.

The ultimate goal is to create models that are financially sustainable for insurers while still accessible to policyholders—no small task given the growing climate pressures.

Final Thoughts

Climate change is reshaping the P&C industry faster than almost any other force. Parametric insurance, resilience incentives, and new underwriting approaches are no longer “innovations”—they are necessities. Insurers who embrace these tools will be better equipped to manage volatility, serve policyholders, and ensure long-term stability in an uncertain climate future.

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

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How Insurance Agents Can Use AI to Generate Sales

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Artificial Intelligence (AI) isn’t just a buzzword anymore—it’s a business tool that forward-thinking insurance agents are using to increase efficiency, improve client interactions, and ultimately close more sales. Whether you’re new to the industry or a seasoned professional, learning how to integrate AI into your sales process can give you a major competitive edge. With these tools you can use AI to generate sales.

1. Lead Generation and Prospecting Made Easy

AI-powered tools can analyze large amounts of data to identify potential leads that are most likely to convert. Platforms like HubSpot, Salesforce with Einstein AI, or insurance-specific CRMs can rank and score leads based on behavior, demographics, and interaction history. This allows agents to focus time and effort on high-quality prospects rather than chasing cold leads.

Example: AI can analyze online search patterns or social media activity to flag people likely shopping for life insurance after major life events like marriage or having children.

2. Personalized Marketing at Scale

Personalization is key in today’s insurance market, and AI makes it easier than ever. Email platforms and social media tools with built-in AI can segment your audience and automatically tailor messages based on age, income, policy needs, and prior interactions.

Tip: Use AI to schedule and personalize follow-up emails after a quote is given, increasing your chances of turning inquiries into policies.

3. Chatbots to Qualify and Convert

AI-powered chatbots on your website or social media can engage with visitors 24/7, answer basic questions, collect contact information, and even qualify leads. These bots ensure you’re not missing out on prospects after hours or when you’re in meetings.

Bonus: Chatbots can book appointments directly into your calendar, saving you time and streamlining the sales funnel.

4. Smarter Cross-Selling and Upselling

AI can analyze existing client data to recommend additional products they might need, like bundling auto and home policies or suggesting umbrella coverage. These recommendations are based on algorithms trained to identify buying patterns and coverage gaps.

Pro Tip: Use your CRM’s AI engine to generate reports that highlight cross-sell opportunities with current clients.

5. Automated Follow-Ups and Reminders

Staying top-of-mind is critical, but following up manually takes time. AI can automate reminders and check-ins, ensuring no lead falls through the cracks. Whether it’s a birthday message, a renewal alert, or a “time to review your coverage” note, AI can handle it while you focus on selling.

6. Client Insights and Predictive Analytics

AI tools can analyze customer behavior and predict future needs. For example, if a client’s driving patterns change or if they purchase a new property, AI systems can flag it and suggest a conversation.

How the Internet is Reshaping Insurance Sales

Key Benefit: Predictive analytics help agents be proactive instead of reactive—offering solutions before clients even realize they need them.

7. AI-Powered Training and Sales Coaching

Some platforms use AI to analyze your sales calls and emails, giving you feedback on tone, keywords, and closing techniques. This real-time coaching can help you become a more persuasive communicator and identify areas for improvement.

Final Thoughts

AI doesn’t replace the human element of sales—it enhances it. Insurance agents who embrace AI are finding they can do more with less, from generating quality leads to improving client retention. By working smarter with AI tools, you can focus on building relationships, delivering value, and growing your book of business.

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

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New CE Requirement: Variable Life Insurance Policies

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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:

  1. Visit our Course Catalog Page.
  2. Select California
  3. Select the license category – Life Only/ Life & Health/ Annuity (Reg BI) / Ethics / LTC / AML
  4. 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

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