What Is the California Insurance Licensing Exam?
The California Department of Insurance (CDI) requires anyone who wants to sell life insurance, accident and health (A&H) insurance, or both in California to pass a state licensing exam. The exam is administered by PSI Services LLC at testing centers across California.
There are three separate license types you can test for:
- Life Only — authorizes you to sell life insurance policies and annuities
- Accident & Health (A&H) Only — authorizes you to sell health, disability, and long-term care insurance
- Life, Accident & Health (Combined) — authorizes you to sell all of the above
Most people preparing for a career in insurance pursue the Combined license since it gives the broadest authority to sell products.
Exam Format and Structure
The format varies depending on which license you're testing for:
Life Only or A&H Only Exam
- 75 questions — all multiple choice with four answer options
- 90 minutes to complete
- Passing score: 60% (45 out of 75 questions correct)
Combined Life, Accident & Health Exam
- 150 questions — the Life section and A&H section back to back
- 180 minutes (3 hours) to complete
- Passing score: 60% on each section independently
Pre-Licensing Education Requirement
Before you can sit for the exam, California requires you to complete a state-approved pre-licensing education course:
- Life Only: 20 hours of pre-licensing education
- A&H Only: 20 hours of pre-licensing education
- Combined Life & A&H: 40 hours (20 hours Life + 20 hours A&H)
These courses cover the same topics that appear on the exam and are available through CDI-approved providers online or in person. Completing the education course does not mean you are ready for the exam — most candidates need additional practice with exam-style questions.
How to Register for the Exam
- Complete your required pre-licensing education hours
- Create an account on the PSI Services website
- Select California and your license type (Life, A&H, or Combined)
- Pay the exam fee and choose a testing center and date
- Arrive at the testing center with valid government-issued photo ID
Testing centers are located throughout California. Appointments are typically available within a few days of registration.
What to Bring to the Exam
- One valid, government-issued photo ID (driver's license, passport, or state ID)
- Your PSI confirmation number
You are not allowed to bring notes, study materials, phones, or calculators into the testing room. All personal items are stored in a locker during the exam.
Fingerprinting Requirement
California requires all insurance license applicants to submit fingerprints for a background check through the Live Scan system. This must typically be completed before or alongside your license application — not necessarily before taking the exam, but check the CDI's current requirements as they can change.
What Happens After You Pass?
When you pass, your score report is printed at the testing center. You then apply for your actual license through the CDI's online licensing system (Sircon or NIPR). The license application requires personal information, background disclosures, and proof of fingerprinting. Licenses are typically issued within a few business days of a complete application.
What Happens If You Fail?
If you do not pass, you can retake the exam. California does not impose a waiting period between attempts, though you must pay the exam fee again for each attempt. There is no limit on the number of times you can retake the exam.
Most candidates who fail do so because they underestimated the depth of the content or didn't practice with enough exam-style questions before sitting. A structured study approach significantly improves first-attempt pass rates.
How Hard Is the California Insurance Exam?
The exam tests both conceptual understanding and practical application. Questions are not simple recall — they often present a scenario and ask you to identify the correct outcome, the correct product, or the correct regulatory requirement.
Candidates who pass on the first attempt typically study for two to four weeks, using a combination of study notes, concept review, and practice questions. The 60% passing threshold is achievable, but it requires consistent preparation — particularly for candidates with no prior insurance background.
Ready to Start Preparing?
LicenseIQ is built specifically for the California CDI Life & Health exam. It tells you exactly what to study, tracks your knowledge gaps, and coaches you topic by topic — so you're not guessing what to do next.
Start Studying for Free →