There seems to be some confusion among prospective insurance agents and brokers concerning the elimination by California of its 20-hour prelicensing course requirement for newly licensed individuals. Let us help set the record straight.
Myth #1: California Removed All Prelicensing Education Requirements
Fact: Only the 20-Hour Course Was Eliminated — Ethics Training Still Applies
Under Assembly Bill 943, effective January 1, 2026, the 20-hour prelicensing education requirement has been removed from the California Insurance Code. This education requirement for accident and health or sickness applicants (as well as property, casualty, personal lines, commercial lines, limited lines automobile, and life insurance) no longer applies.
However, it is important to note that the change in regulation does not alter the requirement that a new licensee needs 12 hours of ethics courses (including one hour of fraud prevention education). This coursework must be completed before a new insurance license can be issued.
Myth #2: Previously Completed Prelicensing Courses No Longer Count
Fact: Pre-2026 Certificates Remain Valid for Three Years
If an applicant completed California’s approved 32-hour prelicensing courses before the end of 2025, that prelicensing certificate of completion does not expire for three years. As such, the 12 hours of ethics (included in the 32 hours) would meet the state’s ongoing requirement for ethics education.
Myth #3: The State Licensing Exam Is Changing
Fact: The Exam, Fingerprinting, and Fees Remain the Same
The insurance license examination is not changing at this time. AB 943 only repeals (and eliminates) the prior prelicensing education requirements. A new license applicant must still pass the state licensing exam, agree to fingerprinting, and pay the required fees associated with the application process.
Myth #4: California Is Alone in Removing Prelicensing Requirements
Fact: California Now Joins 33 Other States Streamlining Licensing
By eliminating the 20-hour prelicensing mandate, California joins 33 other states, and the District of Columbia, in streamlining the insurance licensing process.
Where to Get More Information
For more information about California insurance license application information, visit the Department of Insurance website.
