Governor Gavin Newsom has signed AB 943 (sponsored by Assembly member Rodriguez) into law, making California the latest state to eliminate its insurance producer pre-licensing education requirement, a major win for the industry and aspiring professionals.
Co-sponsored by NAIFA–California (NAIFA-CA) and the Association of California Life and Health Insurance Companies (ACLHIC), AB 943 removes a long-standing barrier to entry for individuals seeking to become licensed insurance producers. The bill was signed on October 10, 2025, following strong advocacy from NAIFA-CA leaders and industry partners.
Under prior law, applicants for various insurance agent licenses including property & casualty, life, and health were required to complete 20 hours of pre-licensing study and 12 hours of ethics instruction.
AB 943 repeals the 20-hour pre-licensing mandate while maintaining the 12-hour ethics and code instruction, including one hour of insurance fraud education. The California Department of Insurance retains oversight to ensure licensing exams continue to cover the Insurance Code, ethics, and relevant product content.
This change reflects a growing national recognition that pre-licensing mandates do not improve exam pass rates or consumer outcomes but instead limit opportunities for individuals, especially those from underrepresented backgrounds to enter the profession.
“NAIFA has long advocated for removing unnecessary barriers that prevent qualified professionals from joining the financial service industry,” said NAIFA CEO Kevin Mayeux, CAE. “Pre-licensing mandates, originally created decades ago, have not been shown to improve exam performance. In fact, states that have repealed the requirement report no decline in exam pass rates, as most candidates still voluntarily purchase courses and study materials to prepare.”
By eliminating the 20-hour pre-licensing requirement, California joins 33 other states and the District of Columbia that have modernized their licensing processes to expand access, promote diversity, and meet the growing need for licensed professionals.
Read NAIFA's Policy Brief for more information.