State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An agent wants to sell Qualified Health Plans through Covered California. What must the agent do before selling?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Agents and brokers who sell Qualified Health Plans on Covered California must complete the exchange's certification process — which includes required training and agreeing to the exchange's producer requirements and code of conduct — before they may enroll consumers. A valid California insurance license is a prerequisite but is not sufficient by itself. There is no special CDI bond for exchange producers, and CMS does not issue a license for selling state-exchange QHPs. This certification requirement is a California exchange (marketplace) rule tested under AH-III.C.5.
Why the other options are wrong
- B) Holding a license is necessary but not enough; Covered California requires its own certification and producer agreement before QHP sales.
- C) No special fidelity bond is required from the Department of Insurance for Covered California producers.
- D) CMS regulates federal Medicare products, not state-exchange QHP sales; Covered California administers the certification for its producers.
Memory hook
Licensed but not certified = can't touch Covered California QHPs yet.