Significant updates to insurance agent training requirements in California are coming in 2025. These changes, mandated by Senate Bill 263, reshape the continuing education landscape for licensed life insurance agents across the state. These changes apply to both resident and non-resident licensees selling certain life insurance products.
As a leading provider of California insurance CE courses, BetterCE is here to guide agents through these updates to ensure compliance and success. This article explores the four major insurance agent training changes agents need to understand to stay compliant.
1. New 4-Hour Life Insurance Policy Training Course
Starting January 1, 2025, a new four-hour training course will be required for agents licensed after January 1, 2024, who sell non-term life insurance policies with cash value. This course is mandatory for agents to understand product-specific features, sales ethics, and compliance regulations.
Who Does This Affect?
Any agents (both resident and non-resident) licensed in California after January 1, 2024, selling individual life insurance products other than term life without cash value. Agents licensed prior to January 1, 2024 do not have to meet this new training requirement.
Key Deadlines
- Agents licensed in 2024 must complete this training by January 1, 2025.
- Agents licensed after January 1, 2025, must complete this course before selling such products.
This new requirement ensures agents understand the nuances of non-term life policies, aligning with California’s efforts to enhance consumer protection and professional competency. BetterCE is here to make the process smooth for agents in California, USA.
The California Department of Insurance has issued a curriculum that provides a description of the new requirements, here: CA 4-HOUR ANNUITY TRAINING CURRICULUM
Agents can access the newly approved 4-Hour Life Insurance Policies Course, here: CA 4-HOUR LIFE INSURANCE POLICIES COURSE
2. New 2-Hour Variable Life Insurance Agent Training Course
All agents selling variable life insurance products will face a new two-hour training requirement tied to their license renewals starting in 2025. This course focuses on regulatory and ethical guidelines, as well as investment-related intricacies unique to variable life policies.
Who Is Affected?
All agents (resident and non-resident) engaged in the sale or solicitation of variable life insurance products in California. Agents must complete this training before every license renewal starting January 1, 2025.
This addition reinforces the importance of staying informed about variable product dynamics, helping agents provide compliant and well-suited recommendations to clients.
The California Department of Insurance has issued a curriculum that provides a description of the new requirements, here: CA 2-HOUR VARIABLE CURRICULUM
Agents can access the newly approved 2-Hour Variable Life Insurance Policies Course, here: CA 2-HOUR VARIABLE LIFE POLICIES COURSE
3. Updated 8-Hour Annuity Training Course for New “Best Interest” Standards
For life agents selling annuity products, the state has replaced the old eight-hour course with an updated version that incorporates the “Best Interest” standard. This ensures that agents are well-versed in aligning recommendations with consumer needs and priorities.
Who Needs to Complete This Course?
Any agent who sells or solicits variable life insurance policies in California are required to complete this insurance agent training.
Key Deadlines
- Agents licensed before January 1, 2025, must complete this training by July 1, 2025.
- Agents licensed after January 1, 2025, must complete it before soliciting or selling annuities.
The updated training builds on ethical sales practices and deeper knowledge of annuities, enhancing trust and transparency between agents and their clients.
A summary of this new training requirement can be viewed on the California Department of Insurance website, here: CA ANNUITY Q&A
Agents can access the newly approved 8-Hour Annuity Training Course, here: CA 8-HOUR ANNUITY TRAINING COURSE
4. Updated 4-Hour Annuity “Best Interest” Training
The state also revised the existing four-hour annuity insurance agent training course for those who have already completed the updated eight-hour course. This renewal training focuses on maintaining knowledge of the “Best Interest” standard in annuity transactions.
Who Does This Impact?
Agents who have completed the new eight-hour annuity course and continue selling annuity products in California. Agents must complete this training as part of every license renewal after their initial eight-hour annuity training.
This step ensures that agents keep their knowledge of ethical and compliant annuity sales practices fresh, which is critical for maintaining their California insurance license and meeting ongoing regulatory expectations.
A summary of this new training requirement can be viewed on the California Department of Insurance website, here: CA ANNUITY Q&A
Agents can access the newly approved 4-Hour Annuity Training Course, here: CA 4-HOUR ANNUITY TRAINING COURSE
Understanding the Impact of These Changes
These new and updated requirements highlight California’s commitment to safeguarding consumer interests while raising the bar for professional competence in the insurance industry. By introducing specific insurance agent training for different product lines, the state ensures that agents are well-prepared to handle the complexities of modern insurance sales.
For both resident and non-resident agents licensed in California, these changes mean staying vigilant about new deadlines and understanding the scope of updated curricula. Failing to comply could lead to lapses, or regulatory violations which may lead to fines or other actions affecting your ability to serve clients.
BetterCE: Your Partner in Meeting Insurance Agent Training Requirements
At BetterCE, we understand how overwhelming it can be to navigate changing California insurance agent training requirements. Our goal is to make your compliance journey straightforward and manageable. Our courses are easy to access, user-friendly, and designed for busy agents like you. If you have questions about insurance agent training obligations or need guidance, we are here to help. Contact us today for assistance or to enroll in a course.
