Application Procedures: Business Entity - Non-Residents
Please follow the steps noted below to file for a business entity license:
Step 1 - Reserve a name for approval - Applicants for a business entity license must use the California Department of Insurance's (CDI) free Business Entity Online Application Service to reserve a name.
Note: Please review our Name Approval Criteria and lists of Unacceptable Words/Phrases and Improper Use of Words/Phrases. You are also encouraged to review names that are currently being used by going to Business Entity Name Search program.
Step 2 - Applicants must submit a casualty broker-agent application using the CDI's Business Entity Online Application Service.
Step 3 - Endorse an individual casualty broker-agent. Business entity must name at least one natural person who holds a California non-resident casualty broker-agent license to represent the business license. Non-resident business entities are able to endorse California resident individuals on their license. Also, non-resident business entities will not be required to endorse an individual from the business entity's resident state. They do though need to endorse at least one individual from a state other than California. (CIC Section 1656).
Endorsees should be named on the Business Entity Application during the initial business entity application filing. Subsequent agent endorsements must be submitted online at Business Entity Endorsement and Termination Online Service (i.e. adding or removing individual licensees who are to transact insurance under authority of its license) (CIC Section 1661).
Each natural person who does not hold an active California casualty broker-agent license must file separately for an individual casualty broker-agent license. This links will provide information on individual filing requirements: Individual Resident Casualty Broker-Agent or Individual Non-Resident Casualty Broker-Agent.
Step 4 - Fees
- License filing fee - two year term: $140 (effective March 17,2014, this fee will be $154).
- Business Entity Endorsement fee: $24 (effective March 17,2014, this fee will be $26) per endorsee.
- Renewal fee - two year term: $140 (effective March 17,2014, this fee will be $154).
Note: When an application is made to the California Department of Insurance, applicants may apply for what was known as a "fire and casualty broker-agent license" by selecting both the property broker-agent and casualty broker-agent license types on their application. Applicants checking both the property broker-agent and casualty broker-agent license types on the application will pay one filing fee.
- Non-Resident applicants will be issued a license that provides for the same line(s) of authority that he or she holds in the home state.
- The fee for limited lines licenses will be the same as the California resident casualty broker-agent license fee.
Financial Security Requirements for Limited Liability Companies
Limited liability companies (LLC's) are required to provide proof of satisfying the security requirements of Section 1647.5 of the California Insurance Code when applying for an insurance license and once licensed, must also file with the Commissioner an annual confirmation of coverage demonstrating continued compliance with the financial security requirements. Additional information regarding the new requirements is contained in the public notice linked on this page.
For additional LLC application filing information, annual certification of coverage information, and links to forms that can be used as proof of fulfilling the security requirements, please go to the following link: Business Entity Limited Liability Company Requirements.
Additional Documents: The Insurance Commissioner may require such documents as will aid in determining whether the applicant meets the qualifications for a license.
Upon application approval the license can be downloaded or printed by using the CDI's Print or Download Your License service. However, the business entity may not transact, solicit, or negotiate the sale of insurance until after one of the following documents are completed and submitted to the California Department of Insurance.
- An Action Notice of Appointment, with $24 (effective March 17,2014, this fee will be $26) filing fee, completed by the sponsoring insurance company admitted to California. Pursuant to Section 2190.22 of Title 10 of the California Code of Regulations, the Action Notice of Appointment must be submitted electronically. To submit appointments electronically contact the National Insurance Producer Registry (NIPR) and its authorized business partners for a list of approved partners. A $24 (effective March 17,2014, this fee will be $26) filing fee must be submitted with each Action Notice of Appointment.
- A Bond of Insurance Broker, Form LIC 417-5, in the penal sum of $10,000 executed in California, by a California admitted surety, completed in the name of the organization and signed by the business entity authorizes the business entity to act as an insurance broker.
All filing fees submitted are not refundable, whether or not the application is acted upon or the examination taken.
For specific questions regarding this license type, please e-mail the Producer Licensing Bureau at Producer Licensing Bureau E-mail or call the CDI's Producer Licensing Toll Free Hotline at (800) 967-9331. Please be sure to include your name, telephone number, license number and e-mail address in all correspondence with the CDI.