The 5 steps
- Complete the 12-hour ethics and Insurance Code course. California repealed the old 20-hour pre-licensing requirement on January 1, 2026, but the 12 hours on ethics and the California Insurance Code are still mandatory before a license can issue. On top of that required course, get a real exam prep course and study until your practice scores are strong.
- Pass the state exam through PSI. The exam fee is $55 plus a $43 convenience fee, so $98 at the register. It covers life insurance concepts, products, and California-specific regulations.
- Submit fingerprints through Live Scan, about $74. California requires your fingerprints to be on file before you submit the license application, so do not skip ahead to step 4.
- Apply for your license. The application fee is $188, which covers life-only, accident and health, or both lines at once. File it after your fingerprints are submitted and your 12-hour ethics course is complete.
- Get contracted and start training. The license lets you sell. It does not give you clients, a system, or anyone to call when you get stuck. That is where Oihana Consulting comes in: mentorship and training from people who do this work every day. One thing to be clear about: agents are independent contractors, not employees. The tradeoff is real. You own your schedule and your results, and the income is commission-based, so nobody hands you a paycheck either. What you get instead is a team, a process, and someone in your corner while you build.
What it costs
| Item | Cost |
|---|---|
| State exam (PSI, incl. convenience fee) | $98 |
| License application | $188 |
| Fingerprints (Live Scan) | ~$74 |
| Exam prep + 12-hr ethics course | ~$100-200 (typical) |
| Total | $360 in state fees; ~$360-500 with prep |
Frequently asked questions
Can I do this part-time?
Yes. The license does not care how many hours you work. Plenty of new agents keep their day job while they study, get licensed, and build their first clients on nights and weekends. The tradeoff is speed. Part-time means slower momentum, and this business rewards consistency. Be honest with yourself about how many hours you will actually put in each week.
Do I need a degree?
No. No state requires a college degree to hold an insurance producer license. The exam tests insurance concepts, not academics. What matters more is whether you can learn the material, talk to people plainly, and follow through when things get uncomfortable.
What if I have a criminal record?
A record does not automatically disqualify you. The background check weighs what happened, how long ago it was, and whether it involved fraud, theft, or dishonesty. Financial crimes are the hardest to get past. Disclose everything on the application. Lying on the application is what actually gets people denied.
How hard is the exam?
It is a memorization test, not a trick test. The people who fail it are usually the ones who tried to wing it. Take a real prep course, drill the practice exams until your scores are consistently strong, and schedule the real thing only when you are ready. Respect the test and it is very passable.
How long does the whole process take?
Plan on 4 to 8 weeks from the day you start to the day the license is in hand, assuming you pass the exam on the first attempt and the state processes at its normal pace.
Do veterans get any fee help?
No state program here covers licensing fees specifically. The one thing worth checking: VA education benefits may reimburse licensing and certification exam fees, up to $2,000 per test. That is a federal benefit, not a state one, so confirm the details at va.gov before counting on it.
What happens after you are licensed
Once the license is in hand, the real work starts: learning the products, finding clients, and building a practice. That is the part nobody can do alone, and it is exactly what Oihana Consulting exists for. Mentorship, training, and a team around you from day one. Start with the career fit assessment and see whether this business fits you before you spend a dollar: /career-fit-assessment
Fees verified October 2026. Confirm current amounts with your state Department of Insurance before you pay anything.