California Life-Only & Accident and Health AgentCalifornia Law - GeneralEasy
A life-only agent, licensed in California, fails to complete the required 24 hours of continuing education (CE) during their two-year license term. What is the immediate consequence for the agent's license?
- AThe agent will be fined $500.
- BThe license will expire, and the agent must cease transacting insurance.
- CThe license will be immediately revoked.
- DThe license will be placed on inactive status until CE is completed.
Show answer & explanationAnswer & explanation
Correct answer: B. The license will expire, and the agent must cease transacting insurance.
California Insurance Code Section 1749.3 states that an individual license will not be renewed if the licensee has not met the continuing education requirements. If not renewed, the license expires.
Why the other options are wrong
- A. A fine might be imposed in some cases, but the immediate consequence of failing CE is license expiration if not renewed.
- C. Revocation is a more severe disciplinary action, typically for serious misconduct, not just a CE deficiency.
- D. Licenses can be placed on inactive status voluntarily, but failure to meet CE requirements results in expiration if not renewed.
Life-Only Agent CE Requirements
Life-only agents in California must complete continuing education to maintain their license. Failure to do so prevents license renewal.
- 24 hours of CE required every 2 years.
- Includes specific ethics training.
- Failure to complete leads to license expiration.
Memory trick: CE is the key to keep your license free from expiry's decree.