California Adopts Best Interest Standards and New Updates for 2025 Training

California adds the “Best Interest” standards for their 8-hour and 4-hour annuity training courses beginning January 1, 2025.

All California agents selling, soliciting or negotiating annuity products must complete the new 8-hour training by July 1, 2025. This applies to all agents, residents or non-resident, including agents who have taken the initial 8-hour annuity training previously. The new 4-hour training will be required every 2 years after the initial completion of the new 8-hour course.

These training requirements are in addition to a 4-hour Life Insurance Policies Course and 2-Hour Variable Life Insurance Training Course that will be effective in 2025 as required in Senate Bill 263.

Resident licensees who have more than 30 years of experience and are 70 years of age or older must take the new 2025 8-hour Annuity course but will not be required to take the 2025 4-hour Life Insurance Policies course or the 2-hour Variable Life Course.

Frequently Asked Questions

Who needs to complete the new training?

All producers who engage in the sale of annuities in the state of California, including those registered with FINRA, must complete the training required by the revised model. This includes seasoned professionals with more than 30 years of experience and 70 years of age.

When is the training due?

All producers engaging in the sale of annuities must complete the new 8-hour training by July 1, 2025.

What if a producer does not complete the required training?

A producer who fails to satisfy the training requirements is not permitted to recommend or sell annuities. A producer who recommends or sells annuities without completing the required training may face enforcement action by the California Department of Insurance.

Will a producer get CE credit for taking the new annuity best interest training?

Yes, courses must be taken through an approved continuing education provider. The course approval should indicate a course category of “Annuity”. These courses are approved for insurance continuing education towards your license renewal and it is the education providers responsibility to post these credits to your transcript. InsuranceStudy.com will be offering these courses—stay tuned for their arrival this fall.

How does a producer show that they have met the new annuity best interest training requirement?

The producer may be asked by the insurer to provide a certificate of completion of the training course in order to satisfy the insurer’s responsibility under the Regulation. Certificates of Completion are provided by InsuranceStudy.com at the completion of your course and can be downloaded at any time from your course dashboard. InsuranceStudy.com is an approved ClearCert provider and all course completions will be reported to ClearCert so that carriers may verify a producer’s certification status at any time. It is the insurer’s responsibility to verify that the producer has completed the training.

Are courses offered through InsuranceStudy.com approved by the state?

All courses available at insurancestudy.com have been approved by the state and comply with all rules and regulations for your license. You can find our complete catalog of state approved courses for California here.

InsuranceStudy.com has been providing continuing education for Insurance Providers and Certified Financial Planners for more than 20 years. We are dedicated to bringing you convenient, affordable and compliant courses. Have more questions? Email us at support@insurancestudy.com.