Effective January 1, 2026, California eliminated the former 20-hour line-specific pre-licensing education requirement for many insurance licenses. However, new applicants must still complete a state-approved California 12-Hour Ethics & Insurance Code course before their insurance license can be issued.
The required 12-hour course covers Ethics and the California Insurance Code, along with the state-mandated 1-hour Insurance Fraud Training. It applies to applicants for Life, Accident & Health or Sickness, Property, Casualty, Personal Lines, and Limited Lines Automobile licenses. Applicants pursuing more than one applicable license generally only need to complete the 12-hour course once.
National Online Insurance School offers the required state-approved 12-hour Ethics and California Insurance Code course as a standalone course. Our California Life, Health, and Life & Health exam prep courses also include the required 12-hour course.
What Changed With California Pre-Licensing in 2026?
Assembly Bill 943 changed California’s insurance prelicensing education requirements effective January 1, 2026.
Before the change, applicants for many producer licenses were required to complete 20 hours of line-specific prelicensing education in addition to 12 hours of Ethics and California Insurance Code study.
California eliminated the 20-hour line-specific education requirement for Property, Casualty, Personal Lines, Commercial Lines, Limited Lines Automobile, Life, and Accident & Health or Sickness applicants. The state did not eliminate the 12-hour Ethics and California Insurance Code requirement.
As a result, applicants are no longer required to complete the former line-specific education hours, but the 12-hour Ethics and California Insurance Code course remains required before an applicable insurance license can be issued.
California also continues to administer licensing exams based on its License Examination Objectives. Candidates may prepare independently or use an exam prep course before taking the state exam.
Who Must Complete the California 12-Hour Ethics and Insurance Code Course?
California requires new applicants for several producer license types to complete 12 hours of study on ethics and the California Insurance Code.
The requirement applies to applicants for:
- Life
- Accident & Health or Sickness
- Property
- Casualty
- Personal Lines
- Limited Lines Automobile
The required course includes 12 hours of approved instruction on ethics and the California Insurance Code, including the required 1-hour Insurance Fraud Training.
This means the requirement is not limited to California Life and Health applicants. Candidates pursuing Property and Casualty, Personal Lines, and Limited Lines Automobile licenses are also subject to the 12-hour requirement.
Do You Have to Complete the 12-Hour Course More Than Once?
In most cases, no.
California Insurance Code §1749 provides that an applicant seeking more than one applicable license type only needs to complete one 12-hour Ethics and California Insurance Code course.
For example, an applicant pursuing both Life and Accident & Health or Sickness does not need to complete separate 12-hour courses for each license.
The same principle applies when an applicant later pursues another license type covered by the provision, provided the existing certificate remains valid. California prelicensing certificates of completion expire three years from the course completion date.
Do You Need the 12-Hour Course Before Taking the California Insurance Exam?
No. California does not require applicants to complete the 12-hour Ethics and California Insurance Code course before scheduling or taking the state insurance exam.
However, the course must be completed before the California Department of Insurance can issue the applicable insurance license.
This gives you flexibility in how you complete the licensing process. You may complete the required 12-hour course before or after taking the state exam, but both requirements must be satisfied before the license can be issued.
Candidates should not confuse the removal of California’s former 20-hour education requirement with the elimination of prelicensing education altogether. The 12-hour Ethics and California Insurance Code course remains a state requirement.
What Does the California 12-Hour Ethics and Insurance Code Course Cover?
The required course focuses specifically on ethics and the California Insurance Code.
California requires the 12-hour course to include the 1-hour Insurance Fraud Training. The curriculum is established through the California Department of Insurance and must be approved for use as the required 12-hour course.
The course is separate from line-specific exam preparation. For example, a candidate preparing for the Life exam must still understand the Life insurance concepts included in California’s Life License Examination Objectives.
The 12-hour course satisfies the state’s required prelicensing education component, while exam preparation is designed to help you prepare for the separate licensing exam.
Is the California 12-Hour Ethics and Insurance Code Course State Approved?
Yes. The required 12-hour course must be approved by the California Department of Insurance.
National Online Insurance School is a California Department of Insurance-approved education provider, Provider ID 275978.
Our 12-hour Ethics and California Insurance Code course satisfies California’s required pre-licensing education requirement and includes the state-mandated 1-hour Insurance Fraud Training.
The course is completed online and is available as a standalone option for candidates who only need to satisfy California’s 12-hour education requirement.
Can You Take the California 12-Hour Course Online?
Yes. California permits the required 12-hour Ethics and California Insurance Code course to be completed through an approved online education provider.
Online courses remain subject to California’s course completion requirements, including time tracking and reporting requirements. The January 1, 2026 changes did not eliminate these requirements for the 12-hour course.
National Online Insurance School’s course is completed online, allowing you to work through the required education without attending scheduled classroom sessions.
California 12-Hour Ethics and Insurance Code Course Only
If you have already passed the California insurance exam or only need to satisfy the state’s education requirement, you can enroll in the standalone 12-hour Ethics and California Insurance Code course.
The course includes:
- 12 hours of required instruction
- Ethics and California Insurance Code
- 1-hour Insurance Fraud Training included
- Online course access
- State-approved pre-licensing education
The standalone course is $49.99.
View the 12-Hour Ethics Course
California Insurance Exam Prep With the 12-Hour Course Included
Although California eliminated its former line-specific prelicensing education requirement, applicants who are required to pass a licensing exam still need to prepare for the material included on the state’s License Examination Objectives.
The California Department of Insurance continues to maintain examination objectives for individual license types, including Life and Accident & Health or Sickness. Education providers may offer exam preparation based on these objectives, although California no longer reviews or approves these line-specific exam prep courses.
National Online Insurance School offers California exam prep for:
- Life
- Accident & Health or Sickness
- Life, Accident & Health or Sickness
Each exam prep option includes the required state-approved 12-hour Ethics and California Insurance Code course.
Our California exam prep also includes exam-level practice questions, Pass Report readiness insights, instructor support, and our Guarantee Pass program.
Candidates preparing for Life or Health can therefore complete the required 12-hour course and prepare for the California licensing exam through the same enrollment.
View California Insurance Exam Prep
Do You Still Need Exam Prep in California?
California no longer requires line-specific prelicensing education before taking the state insurance exam. However, applicants who are required to pass a licensing exam are still responsible for preparing for the topics included in California’s License Examination Objectives.
Exam prep can help you learn the tested material, become familiar with exam-style questions, identify weaker areas, and prepare for the PSI licensing exam.
Our California Life, Health, and Life & Health exam prep courses include the required state-approved 12-hour Ethics and California Insurance Code course, so you do not need to purchase it separately.
Frequently Asked Questions
Is the 12-hour Ethics and California Insurance Code course still required in 2026?
Yes. California eliminated the former 20-hour line-specific prelicensing education requirement effective January 1, 2026, but the required 12-hour Ethics and California Insurance Code course remains in effect.
Who needs the California 12-hour Ethics and Insurance Code course?
New applicants for Life, Accident & Health or Sickness, Property, Casualty, Personal Lines, and Limited Lines Automobile licenses are required to complete the course.
Does the California 12-hour course include insurance fraud training?
Yes. The required 12-hour Ethics and California Insurance Code course includes the state-mandated 1-hour Insurance Fraud Training.
Do I need to complete the 12-hour course before taking the state exam?
No. You may schedule and take the California insurance exam before completing the 12-hour course. However, the required course must be completed before the insurance license can be issued.
Do I have to take another 12-hour course for each insurance license?
Generally, no. Applicants pursuing more than one applicable license type are generally only required to complete one 12-hour Ethics and California Insurance Code course.
Can I take the California 12-hour Ethics and Insurance Code course online?
Yes. The course may be completed online through an approved provider. California continues to require applicable course monitoring, completion, and reporting requirements for the 12-hour course.
Is insurance exam prep still required in California?
California does not require line-specific exam preparation for the producer licenses affected by the January 1, 2026 change. Candidates who must pass a licensing exam are still responsible for preparing for the material included in California’s License Examination Objectives.
Does your California exam prep include the required 12-hour course?
Yes. Our California Life, Health, and Life & Health exam prep courses include the required state-approved 12-hour Ethics and California Insurance Code course. This allows you to prepare for the state licensing exam and complete California’s required pre-licensing education through the same enrollment.
Choose Your California Course
If you only need to satisfy California’s pre-licensing education requirement, enroll in our state-approved 12-hour Ethics and California Insurance Code course for $49.99.
If you are preparing for the California Life, Health, or Life & Health insurance exam, choose one of our California exam prep courses. The required 12-hour Ethics & California Insurance Code course is already included.
