Bluefire Insurance

Looking to become a California independent insurance agent? If you were to look at the Golden State as its own national economy, it would be one of the largest in the world — and with all that economic power comes the need for effective policies. 

Becoming a California insurance agent means you need to understand the licensing process, all the California insurance regulations involved, and any additional licenses you might need to operate in the state. 

In this guide, you’ll learn how to become an independent agent, as well as additional resources for folks taking their first steps in the industry in this state. 

What It Takes to Be an Independent Insurance Agent 

As an independent agent, you can sell products from multiple carriers, allowing you to offer clients a broad range of options that suit their needs. But before you can start working independently, you’ll need to meet California state requirements for licensing. 

You need to understand state-specific laws, complete all the necessary training, pass the licensing exam, and continue to enroll in education to maintain the license in the long run. On top of that, you need to become an effective salesperson — and that always matters, whether you’re an agent in the Golden State or an independent agent in New England. 

Understanding Different California Insurance Licenses 

Here’s a look at the most common types of California insurance licenses: 

• Life-Only Agent License: Required for those who want to sell life protection and annuities. 

• Accident and Health Agent License: Required for agents who plan to sell health and accident coverage. 

• Property and Casualty Broker-Agent License: Necessary for agents selling property (like homeowners or renters coverage) and casualty coverage (such as car or business policies). 

Meeting California’s Minimum Requirements for Insurance Licensing 

The California Department of Insurance lists the exact qualifications to get a license to sell policies in the state. As of 2024, these requirements include: 

• Age: You must be 18 years of age. 

• Residency: You do not need to be a resident of California. 

• Entity: You can be an individual or an owner of a business entity. 

• Pre-licensing Experience & Education: You need a minimum of 20 hours of what the state calls “approved” studying. A new California applicant who had life protection in another state, as well as holders of designations like the CLU, CFP, etc., can waive the 20 hours of studying to meet this requirement. You also need 12 hours of approved study on ethics and the California Insurance Code. 

• Note: If you want both a Property and Casualty Broker-Agent license and a Life license simultaneously, you only need to complete one 12-hour course on ethics and the Code. 

• Continuing Education: You need to complete 24 hours of instruction each two-year renewal period. Three of these hours must be focused on ethics training. If you’re over 70 years old and have a license in good standing, you don’t need to do this. 

On top of all these minimum requirements, don’t forget to cultivate the traits that all agents need to be successful, including developing your emotional intelligence and networking skills. 

Successfully Navigating the California Licensing Exam 

After completing your pre-licensing education, you must pass the California state insurance licensing exam. Each license type has its own exam, testing your knowledge of state laws, ethics, and specific product regulations. Here’s how you can ensure success: 

• Scheduling and Taking the Exam: You’ll need to schedule your exam through PSI, the state’s authorized testing vendor, and pay the associated exam fee. Exams are usually taken at designated testing centers throughout California. 

• Exam Format and Scoring: Exams are multiple-choice, with a varying number of questions depending on the license type. You must score a minimum of 60% to 70%, depending on the exam, to pass. 

• Preparing for the Exam: Use practice tests, review your coursework, and consider additional study materials if necessary. Many candidates find online prep courses and flashcards helpful in building confidence and knowledge retention before test day. 

If you don’t pass on your first attempt, California allows you to retake the exam as many times as necessary. However, you must pay the exam fee for each attempt. 

Resources for Aspiring Independent Insurance Agents 

The California Department of Insurance provides resources to support aspiring agents, including licensing FAQs, updated laws, and ongoing training requirements. And remember why you’re doing all this work in the first place: The perks of being an agent include being your own boss and excellent potential earning opportunities. 

The Best Place for Independent Insurance Agents 

Become a California independent insurance agent for flexibility and a range of opportunities in a highly competitive field. By completing the pre-licensing education, passing the exam, and becoming a producer with a supportive network, you can build a successful career that allows you to connect with clients and offer them diverse policy options. Start your journey today with the resources and support from Bluefire Insurance. 

We’re here to help agents like you — and those aspiring to become one — achieve success. Contact us today to find out about becoming a producer with Bluefire!