An insurance license in California gives people the authority to legally conduct insurance-related business in the state. It allows you to handle, explain, and market insurance policies by acting as a go-between for customers and insurance companies.
All companies in the state that wish to sell insurance must first get the required licenses to be able to sell legally. This is usually the first and most important thing insurance entrepreneurs need to do when opening an agency.
Types of Insurance License California
To legally conduct business in California, all companies and professionals who sell insurance policies must possess the required licenses. Licenses for insurance agencies can be divided into two categories:
- Resident insurance agency license: This enables you to conduct business across state lines if your company is headquartered in California. On a business level, it functions exactly like a regular insurance agent license.
- Non-resident insurance agency license: A non-resident license is necessary for insurance agencies located outside of the state. The good news is that other states and California have reciprocity agreements. This lets out-of-state insurance agencies and agents apply for licenses without taking California’s licensing exam.
Insurance companies can also choose which insurance categories to focus on. You must obtain a license for each line in which you intend to sell policies and there are associated costs and prerequisites for these licenses.
How Much Does Insurance License California Cost?
The price of getting this license varies depending on the kind. For instance, in addition to completing a pre-licensing education course and other course materials, an Accident and Health agent will have to pay a filing fee of $188 and an exam fee of $55.
The cost of renewal is $188, plus an additional 50% for late renewals, totalling $282. Additional fees may apply to business entities for changes like staff additions or deletions ($32 per modification).
How Long Does an Insurance License in California Last?
In California, insurance licenses are valid for two years. The license’s term starts on the day it is issued and ends two years later on the last day of the same calendar month. The expiration date of the first license will apply to any further licenses that are granted after this.
The licenses’ expiration dates are displayed on the front. About ninety days before the expiration of your license, the CDI reminds you via email.
Eligibility Criteria for Insurance License in California
To obtain a license in the state, you must:
- Be at least eighteen (18) years old.
- Show proof of your U.S. citizenship.
- Pass the state licensing test.
These are a few of the prerequisites.
What Disqualifies You from Getting an Insurance License in California?
For every license application, the CDI conducts thorough background investigations. Applicants must thus answer the screening questions completely and honestly. Among the background details you have to provide are:
- Disciplinary action was taken for a professional or business license.
- Convictions for crimes, such as DUIs, careless driving, misdemeanours, felonies, and offences related to the military.
- Pending criminal charges at the time of application.
Failure to withhold any of the items mentioned above could be interpreted as an attempt to obtain a license through deception or fraud. The application may be rejected as a result.
How to Apply for an Insurance License in California
The first step will be to decide what kind of insurance policies you want to sell. After that;
- If you want to increase your chances of passing the licensing exam, complete a pre-licensing course.
- Schedule your exam online with your state’s exam provider at PSI.
- Schedule a fingerprint appointment to comply with the background check requirement set by the California Department of Insurance.
- Take the state licensing exam, pass it, and apply for a license after that. You can apply for an insurance license through Sircon.
- On the home page, choose “Apply for a license” and press the “New Insurance License” button.
Choose the type of license you wish to apply for, then fill out all the required information. And send in your payment.
Frequently Asked Questions
Below are some frequently asked questions.
Will I Need to Renew my Insurance License in California?
Yes. You will need to renew your California insurance license every two years. Depending on your license type, the renewal process requires you to complete either 20 or 24 continuing education (CE) hours.
How Long Does It Take to Get an Insurance License in California?
The CDI will process and issue your insurance license three to five weeks after you have finished all the necessary steps.
Is the Insurance License California Exam Hard?
The kind of license you are seeking and your familiarity with state laws and insurance principles will determine how challenging the exam is. Ultimately, the secret to passing an insurance exam, be it general or specialized, is to allow enough time to ensure that you have fully grasped the subject matter.
How do you get an Insurance Agency License in California?
By visiting Sircon’s website, you can apply for this state’s insurance agency license. If you do not already have an account, you must register. It is the software solutions partner of CDI.
Conclusion
Getting your license makes pursuing a fulfilling career in the insurance sector possible. For those who want to become insurance agents, it is a crucial step.
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