California Life vs. Health Insurance License: What's the Difference?

The Three License Types

The California Department of Insurance (CDI) issues three separate license types for agents who want to sell life and health products. Each license authorizes a different scope of business, and each has its own licensing exam administered by PSI Services LLC.

What the Life Only License Authorizes

A Life Only license (CDI designation 0L) lets you sell products that pay a benefit when the insured person dies or survives to a certain age. Covered products include:

• Term life insurance
• Whole life insurance
• Universal life (UL) and variable universal life (VUL) insurance
• Endowment policies
• Annuities (fixed, variable, and indexed)
• Credit life insurance

A Life Only license does not allow you to sell health, disability, or long-term care products. If a client asks you about medical coverage or income replacement due to sickness, you would not be licensed to help them.

Life Only Exam Format

The Life Only exam covers topics including life insurance policy types and provisions, annuities, California insurance regulations, ethics, and the CDI's rules for agent conduct.

What the Accident & Health Only License Authorizes

An Accident & Health (A&H) Only license (CDI designation 0H) lets you sell products that pay benefits when someone gets sick, injured, or disabled. Covered products include:

• Individual and group health insurance
• HMO (Health Maintenance Organization) plans
• PPO (Preferred Provider Organization) plans
• Medicare Supplement (Medigap) plans
• Medicare Advantage plans
• Disability income insurance (short-term and long-term)
• Long-term care (LTC) insurance
• Dental and vision coverage
• Accident-only policies
• Credit disability insurance

An A&H Only license does not allow you to sell life insurance or annuities of any kind.

A&H Only Exam Format

The A&H Only exam covers health insurance policy types, federal laws like HIPAA and ACA, Medicare and Medicaid, disability income, long-term care, and California-specific health insurance regulations.

What the Combined Life & A&H License Authorizes

The Combined Life & Accident and Health license (CDI designation 0LA) is exactly what it sounds like — it combines both licenses into one. You are authorized to sell every product listed under both the Life Only and A&H Only categories above.

This is the license that most insurance agents in California hold. It gives you the flexibility to serve clients across their full range of insurance needs — life coverage, retirement income through annuities, health plans, disability protection, and long-term care planning — without restriction.

Combined Life & A&H Exam Format

Why Most People Get the Combined License

Here are the most common reasons agents choose the Combined Life & A&H path:

• Employer requirements. Insurance agencies, banks, and financial services firms routinely require the Combined license before they will hire you. Showing up with only a Life Only or A&H Only license limits your options immediately.
• Client needs are not predictable. A client who comes to you for life insurance may also need disability coverage or a Medicare supplement plan. A Combined license means you never have to refer them elsewhere.
• One application, one fee. Getting both licenses at once is administratively simpler and often cheaper than getting them separately at different times.
• Annuities and health both matter for retirement planning. If you work in financial planning or retirement services, you need both to serve clients fully.

When a Single-Line License Makes Sense

There are situations where taking only the Life Only or A&H Only exam is the right move:

Life Only makes sense if:

• You are joining a firm that exclusively sells life insurance and annuities (for example, some final expense or annuity-focused shops).
• You want to enter the workforce faster and plan to add the A&H license later.
• You are certain you will not be selling health-related products in your role.

A&H Only makes sense if:

• You are working specifically in health insurance sales — for example, an ACA marketplace enrollment agency or a Medicare broker.
• Your employer only writes health and disability products and does not need you to sell life or annuities.

Pre-Licensing Education Requirements

Before you can sit for any CDI licensing exam, you must complete a state-approved pre-licensing course. The hour requirements are:

• Life Only: 20 hours of approved pre-licensing education
• A&H Only: 20 hours of approved pre-licensing education
• Combined Life & A&H: 40 hours total (20 hours for Life + 20 hours for A&H, often offered as one combined course)

Pre-licensing courses are offered by a variety of CDI-approved providers, in both live classroom and online self-study formats. After completing the course, you will receive a certificate of completion that you must have before PSI will allow you to schedule your exam.

The Exam Itself: What to Expect

All CDI licensing exams are administered by PSI Services LLC at testing centers throughout California. Key facts that apply to all three exam types:

• All questions are multiple choice with four answer options.
• The passing score is 60% for every exam.
• You will receive your pass/fail result immediately after finishing.
• If you fail, you may retake the exam after a 24-hour waiting period. There is no limit on the number of attempts.
• You must bring two valid forms of ID to the testing center.
• No personal items — including phones, notes, or calculators — are allowed in the testing room.

How to Decide: A Simple Framework

Answer these three questions to pick your path:

1. Does your employer or intended employer require a specific license? If yes, get that one (or the Combined if they want both).
2. Do you know exactly what you will be selling? If you are certain you will only ever sell health insurance, get A&H Only. If you are certain you will only sell life and annuities, get Life Only.
3. Are you unsure or want maximum flexibility? Get the Combined Life & A&H license. This is the right answer for the majority of new agents.