Annuity Training Questions & Answers
Licensing Information
New 2025 Annuity Suitability - "Best Interest Standard" Training LawPlease review Senate Bill (SB) 263 (Dodd, Chapter 3, Statutes of 2024) and the Life Insurance Four-Hour, Variable Life Two-Hour and Annuity Training Frequently Asked Questions (FAQ). This FAQ provides responses to the four-hour annuity and the eight-hour annuity training requirements as well as respond to the Life insurance four-hour annuity and the variable life policies two-hour training requirements. New 2025 Variable Life Two-Hour CourseSenate Bill (SB) 263 (Dodd, Chapter 3, Statutes of 2024), New Life Insurance, Variable Life, and Annuity Training Frequently Asked Questions provides responses to SB 263 questions. This webpage also provides the link to the Department’s Education Provider Course Lookup Service. Variable Life Insurance Training LawWhere can I find out more information about the variable life insurance training law?The variable life two-hour training requirement is stated in California Insurance Code 1749.81(b). Senate Bill (SB) 263 (Dodd, Chapter 3, Statutes of 2024) implemented the variable life policies two-hour training requirement. In addition, the Curriculum Board developed the 2025 Outline of Topics to be Included in the Two-Hour Variable Life Insurance Policies Continuing Education Course Curriculum. Annuity Training Courses1. How can I locate courses that are approved to satisfy the eight-hour annuity training requirement?Classroom, correspondence, and online courses have been approved by the Department to meet this requirement. A listing of the courses approved by the Department can be accessed using the following link: Education Provider Course Lookup Service . Please select "Life" as the License Type, "Continuing Education" as the Education Type, and the “2025 Annuity 8-Hour Training” as the Category Type. 2. How can I locate courses that are approved to satisfy the four-hour annuity training requirement?Classroom, correspondence, and online courses have been approved by the Department to meet this requirement. The courses can now be accessed using the Department's Education Provider Course Lookup Service. Please select "Life" as the license type, "Continuing Education" as the education type, and the “2025 Annuity 4-Hour Training” as the category type. Also note, the completion of an eight-hour annuity training course during a subsequent license renewal will not satisfy the four-hour annuity training requirement (Cal. Ins. Code section 1749.8(b)). Training Requirement1. What is the California annuities training requirement?California law requires Life agents who are authorized to sell annuities to complete an initial eight hours of California specific annuities course prior to soliciting individual customers to sell annuities. In addition, a Life agent who sells annuity products must complete a four-hour California specific annuity training course prior to the expiration of their license. Also note, the completion of an eight-hour annuity training course during a subsequent license renewal will not satisfy the four-hour annuity training requirement (Cal. Ins. Code section 1749.8(b)). 2. What kind of training is required?California Insurance Code Section 1749.8 requires training in annuities. SB 263 provides the specific laws that pertain to the 2025 Annuity Suitability “Best Interest Standards.” In addition, please review the 2025 Annuity Four-Hour Training Course Curriculum and 2025 Annuity Eight-Hour Course Curriculum. California law, regulations, and requirements related to annuities; prohibited sales practices; “Best Interest Standards”; and fraudulent and unfair trade practices. 3. When must the eight-hour annuity training requirement be completed?For Life agents licensed after January 1, 2025, the eight-hour annuity training course must be completed prior to soliciting the sale of any annuity products (Cal. Ins. Code section 1749.8(a)). For Life agents licensed prior to January 1, 2025 who have taken a previous eight-hour annuity training, the new 2025 eight-hour annuity training course must be completed prior to July 1, 2025. 4. How can insurers and insurance agencies verify that their life agents that sell annuities have completed the required training?Yes, the Department provides an Annuity and Variable Life Training Report that enables insurers and agencies to verify their agents' course completion. The Department has also placed the Annuity Training and the Variable Life Training Course that was completed by the agents on the agent's Check A License page, under the "Continuing Education” link. In addition, the Department will be checking insurer's records during market conduct reviews. Legal action may be pursued if agents are found that have not met the annuity training requirement. 5. Does the annuity and variable life course training have to be provided in a classroom?No, the training may be in a classroom, webinar, correspondence, or online. 6. Do I need to send in any proof of completing the annuity and variable life course training?No. The approved education provider will submit the agent’s course completion to the Department. However, you will receive a Certificate of Completion from the education provider which you must keep in your records for five years. 7. Does this requirement apply only to those who sell annuities and/or variable life policies in the senior market?No, it applies to every life agent who sells annuities and/or variable life policies. 8. If the annuity and/or variable life training requirement(s) is not completed, will the life agent’s variable life and variable authority be terminated?No, the agent’s license will be active; however, the agent must complete the annuity and/or variable life policies training before the agent can sell any type of annuities or variable life policies. 9. Does the requirement apply to the sale of fixed, indexed and variable annuities?Yes, the requirement applies to all types of annuities and variable life policies. Effective Date1. How will life agents know if they meet the training requirements to sell annuities and/or variable life policies?As long as the life agents have completed the California specific eight-hour approved annuity training course and the agents are authorized to sell annuity products during the current license term. Additionally, the agents must complete a four-hour California specific annuity training course and a two-hour variable life policies course prior to the renewal of their license if they sold any annuity or variable life products during that license term. 2. Will a life agent’s license state that the agent is authorized to sell annuities and/or variable life products once the agent completes the required training?No. The Life agent’s license will not reflect this authorization. However, the agent’s continuing education record will verify the agent completed the required training. To check the agent’s continuing education record, the Department has placed the Annuity and the Variable Life Training that was completed on the agent’s Check A License page, under the "Continuing Education” link.” Continuing Education1. What is the continuing education requirement?For resident life agents, the annuity and the variable life training requirements count toward the agent’s 24-hour continuing education requirement. 2. If the agent completes the four hours of annuity training and/or the two hours of variable life training after the expiration of the agent’s license, will the agent have to pay a penalty fee and will there be a break in the agent’s license?The Life agent must complete the annuity and variable life insurance policies continuing education requirements prior to renewing the agent’s license. Failing to complete the required annuity and/or variable life policies training prior to expiration date of the agent’s license will not affect the agent’s license renewal. However, the agent will be in violation of the California Insurance Code if the agent sold any annuity and/or variable life products during a license term and did not complete the four-hour annuity or the two-hour variable life policies training during that license term. 3. Is this requirement in addition to the continuing education hours currently required in California Insurance Code sections 1749.3 and 1749.33?No, the annuity and/or variable life policies training hours are part of, and not in addition to, the 24-hour continuing education requirements stated in California Insurance Code sections 1749.3 and 1749.33. Non-Resident Licensees1. Does this requirement apply to non-residents?Yes, unless the non-resident life agents are representing an insurer that is a direct response provider. 2. What is a direct response provider?For purposes of this requirement, a "direct response provider" means an insurer that meets each of the following criteria:
3. I am a licensed non-resident of California who holds a non-resident Life license, will the eight-hour or the four- hour annuity training or variable life policies training count toward my resident continuing education requirement?Since the eight-hour and the four-hour annuity courses contains California specific information, the course may not be approved by the agent’s resident state. Please check with the education provider who supplied the course to determine whether that the specific course completed is also approved in in the agent’s resident state for continuing education credits. Exemptions1. Are there exemptions from this training requirement?The only exception is if the individual represents an insurer that is a direct response provider. The definition of a direct response provider is stated in the Non-Resident Licensee section on this webpage. 2. If I am 70 years old resident licensee who has 30 years of continuous licensing in the State of California and am exempt from the continuing education requirements, am I still required to complete the eight-hour and four-hour annuity and/or the two-hour variable life policies training courses?Yes, for the annuity training. Although this life agent may be exempt from the 24-hour continuing education requirements, if this agent is soliciting the sale of annuities, this agent must complete the required annuity training (Cal Ins. Code sections 1749.8, 10509.915 and 10509.9205). Whereas, for the variable life two-hour course, a licensee who is exempt from the continuing education requirement is also exempt from having to complete the variable life policies two-hour course (Cal. Ins. Code section 1749.3). Annuity and Variable Life Training Course Completion Lists1. Can an insurer or agency obtain a list of their Life agents who have and have not completed the eight- hour and the four-hour annuity training and/or the variable life two-hour training requirements?Yes, the Insurer or Agency can download a list of their Life agents who have and have not completed the annuity training and/or the variable life training requirement(s) by following the instruction on this link: Annuity and Variable Life Two-Hour Training Reports. 2.How can an Insurer or Agency obtain a list of their Life agents who have and have not completed the annuity and variable life training courses in an Acrobat Printable Document Format (PDF)?You will need to follow the instructions noted on the following link: Printable Document Format (pdf). This report is formatted and pops up using a current Adobe Acrobat or later versions. You can download a current Adobe Acrobat Reader by accessing our Free Document Readers page. 3. How can an Insurer or Agency obtain a list of their Life agents who have and have not completed the annuity and variable life training courses in an Excel format?You will need to follow the procedures to create a Comma Separated Values (csv) document. This link provides you with the procedures to run the report. To open the report in an Excel format, please follow the steps noted below.
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