What must an insurance agent do before selling Qualified Health Plans through Covered California?

Why B is correct

Agents and brokers who sell QHPs through Covered California must be licensed in California and complete Covered California's agent and broker certification, including its training, agreements, and compliance requirements. Certification ensures the agent understands the exchange, subsidies, plan offerings, and consumer protections. This is a California-specific requirement because Covered California operates its own exchange; selling exchange products is not authorized by a state license or federal certification alone. Covered California treats the agent as a critical distribution partner, so its certification program verifies license status, completion of training on exchange rules, and agreement to comply with marketing and privacy standards. Certification is separate from and additional to the resident insurance license, and it must be renewed and maintained.

Why the other options are wrong

• C) Agents must be state-licensed and Covered California-certified; CMS does not issue a separate license for selling QHPs in California. Covered California's certification is a state-exchange requirement, and CMS federal certification is not the mechanism that authorizes exchange sales.
• D) A life-only license is insufficient; the agent must be appropriately licensed for health products and complete Covered California certification. A life license alone is not enough; the agent must hold the appropriate license and separately complete Covered California's certification and training.
• A) The DMV has no role in health insurance producer certification. Exchange sales have nothing to do with the Department of Motor Vehicles; certification and compliance run through Covered California.

Memory hook

Selling on Covered California = state license plus exchange certification. No certification, no QHP commissions.