Breaking: California Drops Prelicensing Requirement in 2026, Keeps 12-Hour Ethics Mandate

With the signing of Assembly Bill 943 into law, effective January 1, 2026, California will eliminate the prelicensing education requirement for Life, Health, Life & Health, Property & Casualty, Personal Lines, and other limited lines. Candidates hoping to earn an insurance producer license are no longer required to complete a minimum number of hours of study for each line of authority; however, 12 hours of Code and Ethics is still required before a license can be obtained . 

There are no changes to the content of the state licensing exam. Applicants should still prepare for the state exam by studying a complete prelicensing program specific to their line of authority. 

What action should I take if I'm currently enrolled in an ExamFX course?

Candidates currently enrolled in ExamFX California licensing courses must complete their course to earn Certificates of Completion by midnight, December 31, 2025. Course access will remain available to candidates for the full access period starting from the purchase date. However, candidates who fail to complete their course before December 31, 2025, will be required to take an additional 12-hour Code and Ethics course in order to obtain their insurance license in 2026.

If you're in an active California course for Life, Health, Life and Health, Personal Lines, Property and Casualty, or Limited Lines Auto, please take the following action to remain compliant: 

1. Log in to your course and complete it by 11:59 p.m. on December 31. 
2. Download your Certificate of Completion after you've completed your course. 
   
   

What should I do if I don't complete my course by midnight, December 31? 

On January 1, 2026, any active courses that haven't been completed will still be available to enrolled users; however, the content in that course will not meet the 12-Hour Insurance Code & Ethics requirement.

Candidates must complete the standalone 12-Hour Insurance Code & Ethics course to obtain their producer license. Any progress made in the impacted course(s) after this date will not count toward the required standalone, 12-Hour Insurance Code & Ethics course.   

Changes to ExamFX California Courses in 2026

On December 15th, individual California Line of Authority courses (Life, Health, Life and Health, Personal Lines, Property and Casualty, and Limited Lines Auto) will no longer be for sale. Bundled pairings of each course with a Code and Ethics course will be offered instead. These bundled California products will be available for sale starting December 15, 2025. 

For more information about getting licensed in the state of California, learn more about California's state licensing requirements. 

Prelicensing Education: Still Essential, Still Impactful

Regardless of state regulations, prelicensing education remains the cornerstone to exam success. Passing the insurance licensing exam isn’t just about memorizing terms—it’s about understanding the concepts that will shape your career. Prelicensing courses provide structure, expert guidance, and proven strategies to help you master complex material and avoid costly retakes. 

Even without state mandates, investing in quality education gives you a competitive edge, builds confidence, and sets the foundation for long-term success in the industry. Simply put: prelicensing isn’t a box to check—it’s the key to unlocking your future.

Passing the insurance licensing exam isn’t easy—national pass rates for first-time test takers hover around 57–65% according to industry reports. That means nearly half of candidates fail on their first attempt.

Prelicensing courses do more than teach definitions—they provide a proven roadmap for success. In fact, candidates who complete formal prelicensing education are up to 40% more likely to pass on the first try compared to those who self-study. Why? Because these programs offer:

• Comprehensive coverage of exam topics so you don’t miss critical concepts.
• Expert guidance and practice exams that mirror real test conditions.
• Time-saving strategies to study efficiently and avoid costly retakes.
  
  

And the stakes are high: every failed attempt means additional exam fees, delayed income, and lost opportunities. Investing in prelicensing education isn’t just about passing a test—it’s about building confidence, reducing stress, and laying the foundation for a successful career in insurance.

Even if your state doesn’t require it, the question isn’t “Do I have to take prelicensing?”—it’s “Can I afford not to?”

Prepare the right way, and pass the first time. Explore ExamFX's courses to get started.