In the ever-evolving landscape of life insurance sales, staying compliant with regulatory changes is crucial for success. 

One such significant change for life insurance producers in California is the passing of Senate Bill 263, which imposes new training requirements for Life Insurance Producers (both resident and nonresident) selling cash-value life insurance, annuity contracts, or variable life contracts.  

For life insurance producers, these changes mean more than just additional hours of study. They represent a shift towards further strengthening consumer protection and prioritizing ethical sales practices.

Below, we’ve broken down the latest requirements to help you understand exactly what action you’ll need to take to remain compliant in 2025. 

Navigating the New 4-Hour Life Insurance Policies Training Requirement 

This regulation, encapsulated in Senate Bill 263, mandates that newly licensed life insurance producers complete a four-hour training course before they can sell non-term, cash-value life insurance products. This applies to any life agents licensed on or after January 1, 2024. This initiative aims to ensure that agents are well-equipped to make informed recommendations for the purchase of individual (not group) cash-value life insurance. 

Found in: California Insurance Code section 1749.81(a), in SB 263 (Dodd, Chapter 2, Statutes of 2024) Insurance: annuities and life insurance policies. This law takes effect on January 1, 2025. Read more.  

Catch the recording of our latest webinar to dive deep into the new regulation and understand your next steps to remain compliant in 2025. Watch now: 

Who Needs to Complete the CA 4-Hour Life Policies Training and When  

The new regulation targets all life insurance producers licensed in California from January 1, 2024, onward. 

Both resident and nonresident producers who intend to sell non-term cash-value life insurance to individuals must complete this training. Importantly, this is a one-time requirement and must be fulfilled by January 1, 2025, for those licensed in 2024. 

Agents licensed after January 1, 2025, must complete the training before selling applicable insurance products. 

This targeted approach ensures that new field agents are adequately prepared to navigate the complexities of cash-value life insurance. The training integrates seamlessly into the existing continuing education requirements, allowing resident agents to apply the four hours toward their overall CE credits for license renewal.

Follow this decision tree to quickly understand if you are required to take the new California Life Policies 4-Hour Training. 

Download here

The Implications for Resident and Nonresident Agents 

The regulation extends to both resident and nonresident life insurance agents, reflecting California's intention to maintain consistent standards for all California residents who purchase these types of life insurance policies. Nonresident agents who apply for a license in California starting January 1, 2024, must also complete the training if they plan to sell individual non-term cash value life insurance products to California residents. 

By applying these requirements uniformly, California ensures that all agents operating within its jurisdiction are equipped with the knowledge necessary to guide their California clients effectively. This consistency not only enhances the quality of service provided to consumers but also reinforces the credibility and trustworthiness of the insurance profession. 

Breaking Down the Types of Life Insurance Affected 

Understanding the types of life insurance affected by this regulation is crucial for compliance. The training requirement applies to all non-term cash value life insurance products sold to individuals, including whole life, universal life, variable life, and indexed life insurance policies. Essentially, any life insurance policy accumulating cash value falls under this regulation. 

Steps to Successfully Complete the Required Training 

To successfully complete the required 4-hour training, agents must complete an approved course and pass a certificate examination with a minimum score of 70%. Upon passing, agents will receive a certificate of completion as proof of compliance, and their completion will be reported to the California Department of Insurance.  

ExamFX is an approved provider of the California Life Insurance Policies 4-Hour Training under the "2025 Life Insurance Policies 4-Hour" category. The course will: 

• Fulfill the 4-hour training requirement for insurance producers selling cash value life insurance policies (not term insurance). 

• Applies to life producers licensed since January 1, 2024. Anyone licensed before January 1, 2024, is not subject to this requirement. 

• Earn 4 hours of continuing education toward license renewal. 

If you already purchased ExamFX's Continuing Education All Access Library, the California Life Insurance Policies 4-Hour Training has been automatically added to your account.  

Selling Annuities? New 4 & 8-Hour Annuity Suitability & Best Interest Training Required by July 1, 2025, or at Renewal 

California's Senate Bill 263 introduced changes for insurance producers selling annuity contracts, mandating life insurance producers selling annuities to complete specific training to ensure consumer protection and uphold new “best interest” standards (applies to both residents and nonresidents). 

Catch the recording of our latest webinar about this Annuity Suitability requirement to dive deep into the new regulation and understand your next steps to remain compliant in 2025. Watch now: 

Who Needs to Complete the CA 8-Hour Annuity Suitability & Best Interest Training and When 

Starting January 1, 2025, California requires all life agents involved in annuity transactions to complete an 8-hour course on annuity suitability and best interest training. Producers must also undertake a 4-hour refresher course before each license renewal.  

These efforts reflect the state's commitment to aligning with the National Association of Insurance Commissioners (NAIC) Model Act, which emphasizes the importance of acting in the customer's best interest rather than merely ensuring product suitability. 

This new mandate impacts producers at all stages of their careers. New life agents must complete this training before they can begin selling annuity contracts. Existing agents are given until July 1, 2025, to fulfill the eight-hour training requirement. This ensures that all producers are equipped with the latest knowledge and skills to serve their clients effectively. 

Follow this decision tree to quickly understand which Annuity Suitability & Best Interest Training to take, and when. 

Download here 

Available soon: ExamFX approved Annuity Suitability & Best Interest Training Courses 

Coming soon, both the 4 and 8-hour Annuity Suitability & Best Interest Training courses will be available for purchase at examfx.com.  

Once available, these courses will be added automatically in the All Access Continuing Education Library, which includes a complete collection of state-specific trainings needed to renew a standard Life/Life and Health license. 

New 2-Hour Training Requirement for life insurance producers selling variable life insurance 

Another change enacted by Senate Bill 263, a new 2-hour training is required for life agents who sell individual variable life insurance. 

Who Needs to Complete the 2-Hour Variable Life Training and When 

Life agents who sell variable life insurance policies must complete 2 hours of variable life-specific training before each license renewal. 

• Applies to licenses that are issued or renewed on or after January 1, 2025.  

• Applies to both California resident and non-resident licenses.  

This requirement is part of, and not in addition to, the California resident licensee's continuing education requirement. 

ExamFX will be developing this as a new course offering early in 2025. 

ExamFX: Your Partner in Meeting Training Obligations 

Navigating these new requirements can be overwhelming, but you're not alone. ExamFX is ready to support you with resources designed to simplify continuing education and ensure compliance. Our comprehensive solutions are crafted to make your training journey as seamless as possible. 

Maximizing the Benefits of the ExamFX All Access Library 

The ExamFX All Access Library is your gateway to fulfilling California's training mandates efficiently and effectively. This all-inclusive continuing education library offers a suite of courses that are tailored to meet California’s specific renewal requirements, including these new courses, providing a one-stop resource for your continuing education needs. 

For the best bang for your buck, consider purchasing the All Access Continuing Education Library to get automatic access to all of the upcoming required training courses. 

• Includes a complete collection of courses needed to renew a standard Life/Life and Health license.*  

• Library updates automatically if requirements change. 

• 365-day access to more than 20 state-specific online courses producers can use towards license renewal. 

• Includes the California Life Insurance Policies 4-Hour Training, and, once they're approved, the newly required 4- and 8-hour Annuity Suitability and Best Interest Training courses will automatically be added to any CA All-Access Libraries purchased.   

Key takeaways: The impact of California’s Senate Bill 263 

As you navigate these new regulatory waters, remember that preparation and proactive learning are your keys to success. California's new training requirements are designed to protect consumers and elevate industry standards. By embracing these changes, you position yourself as a knowledgeable and ethical insurance producer. 

ExamFX is here to guide you through these changes. Our comprehensive resources and expert support are tailored to help you meet and exceed these new requirements, ensuring your continued success in the insurance industry.

Stay informed, stay compliant, and continue to serve your clients with the highest level of integrity and expertise.