California AB 943 Explained — What the 2026 Insurance Prelicensing Changes Mean for You

If you're getting your California insurance license in 2026, the rules just changed — and they changed in your favor. California Assembly Bill 943, signed into law in 2024 and effective January 1, 2026, eliminated the old line-specific prelicensing hour requirements that had been on the books for decades. The 52-hour Life course, the 40-hour Accident & Health course, the 40-hour Property course, and the 40-hour Casualty course are gone.

What replaced all of them is simpler: a single 12-hour Code and Ethics prelicensing course. That's it. One course covers every line of authority you want to qualify for.

If you've been hearing conflicting information from different schools about how many hours you need, this guide cuts through it with the actual statutory citation, what changed and what didn't, and what most candidates are doing now that the rules are looser.

What AB 943 actually changed

Before AB 943, California Insurance Code § 1749 required every insurance license applicant to complete a specific number of education hours per line of authority before they could sit for the state exam. The hour counts were:

• Life-Only Agent: 52 hours total (40 hours general + 12 hours Code & Ethics)
• Accident & Health Agent: 40 hours total (28 hours general + 12 hours Code & Ethics)
• Property Broker-Agent: 40 hours total (28 hours general + 12 hours Code & Ethics)
• Casualty Broker-Agent: 40 hours total (28 hours general + 12 hours Code & Ethics)
• Personal Lines Broker-Agent: 20 hours total (8 hours general + 12 hours Code & Ethics)

If you wanted multiple lines, you stacked the hours. A new agent pursuing a combined Life/Accident & Health license needed roughly 92 hours of seat time before they could schedule their exam.

Effective January 1, 2026, the line-specific hours were eliminated entirely. The only mandatory prelicensing education that remains is the 12-hour Code and Ethics course, codified in Cal. Ins. Code § 1749(a)(1) (Article 13.5, as amended by AB 943).

That single 12-hour course now satisfies the prelicensing education requirement for every major line: Life, Accident & Health, Property, Casualty, and Personal Lines.

What did NOT change

It's important to be specific about what AB 943 did and didn't touch, because some online sources are getting this wrong.

Still required:

• The state licensing exam. You still must pass the California Department of Insurance exam administered by PSI. AB 943 didn't change exam content, format, or passing score (60% to pass).
• Fingerprinting and background check. Live Scan fingerprinting is still required for all applicants. Submit through a CDI-approved Live Scan provider; results go directly to the Department of Insurance.
• The license application. You still apply through NIPR or CDI's online portal. The application fee schedule wasn't affected by AB 943.
• Continuing education. Once you're licensed, you still owe 24 hours of CE every 2 years, including 3 hours of ethics. CE rules are governed by separate statutes (Cal. Ins. Code § 1749.3), not AB 943.
• Age and residency. Still 18 years old, still must be a California resident or licensed non-resident.

What also didn't change:

• The Code and Ethics course content itself. The 12-hour curriculum covers California insurance law, the Producer Licensing Model Act, ethical sales practices, and consumer protection — the same material the Department has required for years.
• The fact that your education must come from a CDI-approved provider with a current Provider Approval Number on file with the state.

Why California eliminated the line-specific hours

The legislative analysis behind AB 943 made two arguments. First, the old line-specific hour requirements created a barrier to entry that the Department of Insurance had grown skeptical of — the state already gates licensure with a substantive exam and a fingerprint-based background check, so adding mandatory seat time on top wasn't producing meaningfully better-prepared agents. Second, candidates pursuing multiple lines were paying for and sitting through redundant content (the Code & Ethics block was repeated in every line-specific course), which the bill's author called "an inefficiency without a corresponding consumer protection benefit."

The Department of Insurance supported the bill, as did most major industry associations. The change brings California in line with several other large markets that don't impose line-specific hour mandates — Texas, Pennsylvania, and Arizona, among others, have no prelicensing education requirement at all.

What this means for you in practice

The shortest version: you can complete the only required prelicensing education in a single afternoon. A 12-hour Code & Ethics course, taken online and self-paced, takes most candidates between one full day and one weekend depending on how they break it up.

Three things to keep in mind, though:

1. The 12-hour Code & Ethics course is required even though you may not need to learn from it

The course exists primarily to make sure every new licensee in California has formal exposure to state insurance law and ethical sales practices before they can be appointed by a carrier. Even if you've worked in the industry in another state, you still need to complete California's specific Code & Ethics course because the curriculum is California-specific.

2. The state exam content didn't get easier — only the prelicensing requirement

Removing seat-time hours doesn't remove the underlying knowledge requirement. The PSI exam still tests the same material. Most candidates who pass on the first try report studying 20 to 40 hours of state-exam-aligned material before sitting for the test, even when their state doesn't mandate it. Voluntary exam prep is now where most of the actual learning happens for California candidates.

3. Combined-line study is now genuinely combined

Under the old rules, you'd pay for and sit through a 52-hour Life course and a 40-hour Health course as two separate experiences. Now you take the 12-hour Code & Ethics course once, then study for the Life and Accident & Health exam content with whatever exam prep makes sense for you. JustInsurance's California prelicensing courses include the required 12-hour Code & Ethics course plus full exam prep covering both Life and Accident & Health content in a single bundle.

Step-by-step: How to get licensed in California in 2026

Here's the updated process under AB 943, start to finish:

1. Decide which line of authority you want. Life-Only, Accident & Health, combined Life & Accident/Health (most common), Property, Casualty, or Personal Lines. You can pursue multiple at once.
2. Complete the 12-hour Code and Ethics course with a CDI-approved provider. Online and self-paced is the most common format. You'll receive a certificate of completion.
3. Schedule your state exam through PSI. California's exam administrator is PSI. Schedule online at test-takers.psiexams.com. Each line is a separate exam; the combined Life & Accident/Health exam covers both lines in one sitting.
4. Complete Live Scan fingerprinting. Use any CDI-approved Live Scan provider. Bring the official CDI Request for Live Scan Service form, available on the CDI website.
5. Submit your license application. Apply through NIPR or directly through the CDI online portal. Pay the application fee.
6. Wait for license issuance. California's processing time runs 4 to 8 weeks for resident license applications, depending on background check turnaround.

For a complete fee breakdown, fingerprinting requirements, and current renewal cycles, see our California insurance license requirements page.

Are some schools still selling the old hour packages?

Yes, and this is where it gets confusing. Some prelicensing providers haven't updated their California catalogs to reflect AB 943. You may still see "52-hour California Life Insurance Course" listings on competitor sites in 2026. There are two reasons this happens:

• Inertia. Some providers haven't gotten around to updating their state-specific catalogs.
• Bundling exam prep as "required hours." Some schools sell exam prep content under a label that suggests it's mandatory state hours when it isn't. Read the fine print: if the description says the hours are "required by California for licensure," verify against Cal. Ins. Code § 1749 directly. The only required prelicensing education in California after January 1, 2026 is 12 hours of Code & Ethics.

That said, voluntary exam prep is genuinely valuable — it's where most candidates do the actual studying that gets them past the PSI exam. Just understand the distinction between mandatory state-required hours (12) and exam prep you choose to take on top.

Frequently asked questions

How many hours of prelicensing do I need in California now?

12 hours total — the Code and Ethics course required under Cal. Ins. Code § 1749(a)(1). This applies to Life, Accident & Health, Property, Casualty, and Personal Lines licenses as of January 1, 2026.

Do I need separate prelicensing courses for Life and Health?

No. The same 12-hour Code & Ethics course satisfies the prelicensing education requirement for both lines. You will, however, need to pass a separate state exam for each line — or take the combined Life & Accident/Health exam.

What if I started my prelicensing in 2025 under the old rules?

If you completed your prelicensing under the old hour requirements before January 1, 2026, your education credit remains valid. Submit your application within the standard window after completing your education and you'll be processed under the rules in effect at the time of completion. If you're still in progress, switching to the AB 943 12-hour pathway is straightforward — most schools will let you transition.

Did AB 943 change continuing education?

No. CE requirements are governed by Cal. Ins. Code § 1749.3 and were not amended by AB 943. California still requires 24 hours of CE every 2 years (including 3 hours of ethics) for license renewal. See our California continuing education courses for renewal options.

Is the 12-hour Code & Ethics course the same as the CE Ethics requirement?

No. The 12-hour Code & Ethics course is prelicensing — required before you can sit for your initial state exam. The 3-hour Ethics requirement in CE is a continuing education requirement that recurs every renewal cycle. They serve different purposes and are required at different points in your career.

Do I still need to be 18 and a California resident?

Yes. AB 943 didn't change minimum age (18), residency requirements (California resident or licensed non-resident), or background check requirements. Live Scan fingerprinting is still mandatory.

Where can I take the 12-hour Code & Ethics course?

The course must be completed with a CDI-approved provider with a current Provider Approval Number. JustInsurance is a CDI-approved provider, and our California prelicensing courses include the required 12-hour Code & Ethics course plus optional exam prep tailored to your line of authority.

Bottom line

California AB 943 made the prelicensing process dramatically simpler and faster. If you've been putting off getting licensed because of the old 52-hour or 92-hour combined seat-time requirement, those barriers are gone. The path is now: 12-hour Code & Ethics course → state exam → fingerprinting → application → license. Most candidates can move from enrollment to active license in 2 to 6 weeks depending on exam scheduling and background check turnaround.

The exam is still the gating event — that didn't change. But the runway to get to it just got a lot shorter.

Ready to start? Browse California prelicensing courses for the 12-hour Code & Ethics course plus state-aligned exam prep.

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Sources: California Assembly Bill 943 (2023-2024 Session), Cal. Ins. Code § 1749, California Department of Insurance — Producer Licensing.