Application Procedures-Business Entity Residents LO
Application Procedures: Business Entity - 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 are encouraged to 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 an application using the CDI's Business Entity Online Application Service.
Step 3 - Endorse an individual life-only agent - Business entity must name at least one natural person who holds a California resident life-only agent license to represent the business license.
Endorsees should be named on the Business Entity Application during the initial business entity application filing. Subsequent agent endorsement(s) 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 resident life-only agent license must file separately for an individual resident life-only agent license. This link will provide information on individual filing requirements: Individual Resident Life-Only Agent.
Step 4 - Fees
- License filing fee - two year term: $154
- Business Entity Endorsement fee: $26 per endorsee.
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.
A business entity is no longer required to have an appointment to have the license issued. Upon application approval the license can be downloaded or printed by using the CDI's Print or Download Your License online service. However, the licensee may not transact, solicit, or negotiate the sale of insurance until an Action Notice of Appointment is 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 $26 filing fee must be submitted with each Action Notice of Appointment.
All filing fees submitted are not refundable, whether or not the application is acted upon or the examination taken.
To obtain insurance licensing information on Business Entities, you may phone the Producer Licensing Bureau's Business Entity unit at (916) 492-3069.