California Senate Bill 263: New Annuity Training Requirements Explained

California Senate Bill 263 (CA SB263) introduces significant changes to continuing education (CE) requirements for insurance producers, emphasizing consumer protection and regulatory compliance. While based on the National Association of Insurance Commissioners’ (NAIC) Best Interest, California has expanded these guidelines to address the unique needs of its insurance market.  

This guide will help you navigate these changes as we approach the January 1, 2025, implementation date. 

Quick Highlights 

What is California Senate Bill 263?  

With Senate Bill 263, California adopted the NAIC Best Interest standards, requiring all California licensed life insurance producers writing permanent (non-term) life and annuities to complete updated training. 

Key Changes to Continuing Education

New Requirement: All California life insurance producers (resident and non-resident) writing annuity products must complete an 8-hour annuity training course that includes annuity best interest standards. 

4-Hour Refresher for Existing Agents: Licensed agents must also complete a 4-hour annuity training course that includes annuity best interest standards.  

What is California Senate Bill 263 (CA SB263)? 

California Senate Bill 263 (CA SB263) is designed to strengthen protections for consumers purchasing annuities and certain life insurance products.  

While the law adopts the NAIC’s Annuity Best Interest standard as a foundation, California has expanded on these guidelines to create stricter training requirements for its insurance producers to ensure consumer financial needs and goals are prioritized. 

Who Must Comply with SB263? 

The new requirements apply to all California-licensed insurance agents, including: 

• Resident and non-resident agents licensed in California. 

• Life insurance producers and annuity specialists selling, soliciting, or negotiating annuity products.

Importantly, even those who previously completed the 8-hour annuity training course must take the newly updated course. Any hours not needed for this renewal period can be carried over to the next. 

What Are the New Requirements? 

California’s updated annuity regulations require agents to complete new training courses based on their licensing status by July 1, 2025. 

Here’s a breakdown of what’s required: 

1. Step 1: Complete the Updated 8-Hour Annuity Training Course: 

• Who: All resident and non-resident California life insurance producers writing annuity products, including new agents and those who completed the previous 8-hour training course. 

• Content: Includes the latest updates to best practices and regulations introduced by SB263. 

2. Step 2: Complete the Updated 4-Hour Annuity Training Course: 

• Who: Currently licensed agents must complete this course in addition to the updated 8-hour course by July 1, 2025.   New agents earning their license are not required to complete the 4-hour course initially but must do so in subsequent renewal periods after completing the 8-hour training course.  

• Content: Includes the latest updates to best practices and regulations introduced by SB263. 

California Annuity Best Interest Training from WebCE 

WebCE’s updated California 8-Hour Annuity Training and California 4-Hour Annuity Training courses, designed to meet the updated standards set by the California Department of Insurance, are coming soon!