LICENSING INFORMATION
Authorizing Act with definitions
Section 1625.5 of the California Insurance Code reads, in part:
A personal lines (PL) licensee is a person authorized to transact automobile insurance, residential property insurance, including earthquake and flood insurance, personal watercraft insurance and umbrella or excess liability insurance providing coverage when written over one or more underlying automobile or residential property insurance policies, and a personal lines broker-agent license is a license so to act. Personal Lines Broker-Agent license authority is determined by what documents are submitted.
Minimum Age: 18 years.
Residency: California residency is not required.
Entity Types: Individual and Business Entity.
Prelicensing Experience/Education:
1) Require a minimum of 20 hours of approved prelicensing classroom study. A new California resident applicant who had a current casualty license in another state and completed 20 hours of prelicensing education for casualty insurance in order to obtain that license, or an applicant holding any of the following designations: Accredited Advisor in Insurance (AAI), Chartered Property Casualty Underwriter (CPCU), Certified Insurance Counselor (CIC) or Associate in Risk Management (ARM) is exempt from the 20 hours of prelicensing education.
2) Require 12 hours of approved prelicensing classroom study on ethics and the California Insurance Code. Where an applicant seeks both the Broker-Agent license and the Life license, the applicant shall only be required to complete one 12 hour course on ethics and the California Insurance Code.
Continuing Education:
1) Section 1749.31 of the CIC was amended to allow Personal Lines Broker-Agents to complete 20 hours of CE during their two-year license term, removing the requirement to complete 10 hours during each calendar year in a license term.
2) Effective January 1, 1998, any person who is 70 years of age or older and who has been licensed for 30 continuous years as a licensee in good standing in this state, may be exempt from the continuing education requirement. Any licensee that markets individual long-term care contracts is still required to meet the specific education requirements for marketing such contracts.
Application: Application for Insurance License, the Fast Licensing Application Service is Here (FLASH) Online Application, must be completed by applicants who do not hold an active California Personal Lines Broker-Agent license.
Examination: Applicants who do not hold an active California Resident Personal Lines Broker-Agent license and whose eligibility for that license without examination has expired must pass the written examination for Personal Lines Broker-Agent prepared and administered by the Department.
Fingerprint Impressions: Fingerprint impressions are required for unlicensed applicants. If an examination is required, fingerprint impressions can be taken at the California examination sites.
Additional Documents: The Insurance Commissioner may require such other documents as will aid in determining whether the applicant meets the qualifications for a license.
Effective January 1, 2003, a Personal Lines Broker-Agent applicant will be mailed his or her license upon application approval and passing the license examination. However, the licensee 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.
Documents Determining Authority to Act:
- A $10,000 Bond of Insurance Broker, form LIC 417-5, authorizes the licensee to act as an insurance broker. An insurance broker is a person who, for compensation and on behalf of another person transacts insurance other than commercial lines and life with, but not on behalf of an insurer.
- Action Notice of Appointment, with $24 (effective July 1, 2009, this fee will be $23) this fee filing fee, completed by the sponsoring insurance company admitted to California authorizes the person to act as an insurance agent. 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. An insurance agent is a person authorized by and on behalf of an insurer to transact all classes of insurance, except commercial lines and life insurance.
- Pursuant to Section 1656 of the California Insurance Code, Business Entity Endorsement, completed by the sponsoring business entity licensed in California. The endorsement can be filed online using our Business Entity Endorsement and Termination Online Service.
- An Action Notice of Solicitor*, form LIC 417-31, authorizes the licensee to act as an insurance solicitor. An insurance solicitor is a natural person employed to aid an insurance agent or insurance broker in transacting insurance other than commercial lines and life.
Fees - Individual Residents:
- License filing: $144 (effective July 1, 2009, this fee will be $136) (2-year term).
- Examination: $41 (effective July 1, 2009, this fee will be $39) per scheduled examination date.
- Fingerprint: Review the Fingerprint Processing link for fees.
- Renewal: $144 (effective July 1, 2009, this fee will be $136) (2-year term).
Business Entity Application:
Any legal entity, other than an individual, may qualify for a business entity license. Applicants must submit the Application for Business Entity license, form LIC 441-11.
Natural Person Named On Business Entity:
Endorsees can be named on the Business Entity Application, during the initial business entity application filing. However, once licensed, a business entity endorsement must be submitted for each new endorsee using the CDI's Business Entity Endorsement and Termination Online Service.
Application for Insurance License use the Fast Licensing Application Service is Here (FLASH) Online Application must be completed by each natural person who does not hold an active California Persona Lines Broker-Agent license (individual filing requirements must be met).
Note: The business entity must have at least one California resident Personal Lines Broker-Agent endorsee to establish and maintain the license.
Additional Documents: The Insurance Commissioner may require such other documents as will aid in determining whether the applicant meets the qualifications for a license.
Effective January 1, 2003, a Personal Lines Broker-Agent applicant will be mailed his or her license upon application approval. However, the licensee 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.
Documents Determining Authority to Act:
- A $10,000 Bond of Insurance Broker, form LIC 417-5, authorizes the licensee to act as an insurance broker. An insurance broker is a person who, for compensation and on behalf of another person transacts insurance other than commercial lines and life with, but not on behalf of an insurer.
- Action Notice of Appointment, with $24 (effective July 1, 2009, this fee will be $23) filing fee, completed by the sponsoring insurance company admitted to California authorizes the person to act as an insurance agent. 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. An insurance agent is a person authorized by and on behalf of an insurer to transact all classes of insurance, except commercial lines and life insurance.
Fees - Business Entity Residents:
- License filing: $144 (effective July 1, 2009, this fee will be $136) (2-year term).
- Business Entity Endorsement: $24 (effective July 1, 2009, this fee will be $23).
- Renewal fee: $144 (effective July 1, 2009, this fee will be $136) (2-year term). Must have one natural person currently named on business entity.
Note: Natural persons filing use the Fast Licensing Application Service is Here (FLASH) Online Application, refer to individual filing fees.
Application: An individual application must be completed by applicants who do not hold an active California Personal Lines license. The non-resident applicant may complete the individual application, using the Fast Licensing Application Service is Here (FLASH) Online Application
Fingerprint Processing: All unlicensed applicants who file for a license will be required to file fingerprint impressions prior to submitting their application to the California Department of Insurance. The Non-Resident Applicants to File Fingerprint Impressions Web page lists the procedures on how to submit the Fingerprint impressions.
Examination: Not required except if the applicant's state, commonwealth or Canadian province of residence has no reciprocal agreement for waiving of examination.
Additional Documents: The Insurance Commissioner may require such other documents as will aid in determining whether the applicant meets the qualifications for a license.
Effective January 1, 2003, a Personal Lines Broker-Agent applicant will be mailed his or her license upon application approval. However, the licensee 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.
Documents Determining Authority to Act:
- A $10,000 Bond of Insurance Broker, form LIC 417-5, authorizes the licensee to act as an insurance broker. An insurance broker is a person who, for compensation and on behalf of another person transacts insurance other than commercial lines and life with, but not on behalf of an insurer.
- Action Notice of Appointment, with $24 (effective July 1, 2009, this fee will be $23) filing fee, completed by the sponsoring insurance company admitted to California authorizes the person to act as an insurance agent. 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. An insurance agent is a person authorized by and on behalf of an insurer to transact all classes of insurance, except commercial lines and life insurance.
- Pursuant to Section 1656 of the California Insurance Code, Business Entity Endorsement, completed by the sponsoring business entity licensed in California. The endorsement can be filed online using our Business Entity Endorsement and Termination Online Service.
Limited Lines:
- 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.
Note: Licensed non-resident agents whose state of residence does not have continuing education must meet the same requirements as a California resident in order to renew their licenses. Licensed non-resident agents who comply with the continuing education requirements of their state of residence are exempt from California continuing education requirements. If licensees transact long term care products, they must meet California specific long term care education requirements
Fees - Individual Non-residents:
Beginning on January 1, 2009, California's licensing fee for non-residents will be the same as the fee to become licensed as a resident producer when applying for the same type of license regardless of which state the individual holds a resident license.
- License filing: $144 (effective July 1, 2009, this fee will be $136) (2-year term).
- Fingerprint Processing fee: Review the Fingerprint Processing link for fees.
- Renewal Fee: $144 (effective July 1, 2009, this fee will be $136) (2-year term).
Business Entity Application:
- Any legal entity, other than an individual, may qualify for a business entity license. Applicants must submit the Application for Business Entity license, form LIC 441-11.
Note: A California resident cannot be endorsed on a non-resident business entity.
Natural Person Named On Business Entity:
- Endorsees can be named on the Business Entity Application, during the initial business entity application filing. However, once licensed, a business entity endorsement must be submitted for each new endorsee using the CDI's Business Entity Endorsement and Termination Online Service.
- Application for Insurance License, the Fast Licensing Application Service is Here (FLASH) Online Application must be filed for each natural person who does not hold an active California non-resident Personal Lines Broker-Agent license (individual filing requirements must be met).
Additional Documents: The Insurance Commissioner may require such other documents as will aid in determining whether the applicant meets the qualifications for a license.
Effective January 1, 2003, a Personal Lines Broker-Agent applicant will be mailed his or her license upon application approval. However, the licensee 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.
Documents Determining Authority to Act:
- 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 business entity and signed by the business entity authorizes the business entity to act as an insurance broker.
- Action Notice of Appointment, with $24 (effective July 1, 2009, this fee will be $23) filing fee, completed by the sponsoring insurance company admitted to California authorizes the person to act as an insurance agent. 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. An insurance agent is a person authorized by and on behalf of an insurer to transact all classes of insurance, except commercial lines and life insurance.
Limited Lines:
- 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 Fire and Casualty Broker-Agent license fee and are subject to retaliatory provisions.
Fees - Business Entity Non-residents:
Beginning on January 1, 2009, California's licensing fee for non-residents will be the same as the fee to become licensed as a resident producer when applying for the same type of license regardless of which state the individual holds a resident license.
- License filing: $144 (effective July 1, 2009, this fee will be $136) (2-year term).
- Fingerprint Processing fee: Review the Fingerprint Processing link for fees.
- Renewal Fee: $144 (effective July 1, 2009, this fee will be $136) (2-year term), Must have one natural person currently named on business entity.
Note: Natural persons filing use the Fast Licensing Application Service is Here (FLASH) Online Application, refer to individual filing fees.
Effective January 1, 2009, Section 1625.5 of the CIC was amended to restructure the dates that initial licenses for Personal Lines Broker-Agents are effective so that renewals are staggered throughout the year rather than all due at the same time at the beginning of every odd year as it is at present. However, the renewal date for an existing Personal Lines Broker-Agent will remain the same. If a Personal Lines Broker-Agent also holds an additional license qualification (e.g. Life-Only Agent, Accident and Health Agent) the Personal Lines Broker-Agent's renewal date will be changed so that these licensees will have one renewal date instead of two renewal dates as it is at present.
Note: If a Personal Lines Broker-Agent license is issued to a licensee with an existing license term, the Personal Lines license will be issued with the same license term as the existing license.
Pursuant to Section 1718 of the California Insurance Code, a renewal notification may be mailed to the mailing address of record approximately 90 days prior to the expiration date of the license. Individuals may receive a renewal application showing total fees due for all license types held, the total number of continuing education hours completed, and the number of ethics continuing education completed at the time the renewal form is printed. If the continuing education requirement has not been met, the renewal will indicate how many hours are needed.
You may renew your license using the California Department of Insurance Free Application Online Renewal Service.
Note: You cannot use the online renewal service for a late renewal.
All licensees that renew their licenses late will be required to pay a 50 percent penalty fee and file new company appointments and/or business entity endorsements or solicitor appointment (if applicable). "Late" is defined as any renewal for which the requirements to renew (this includes completing the ethics and continuing education hours) are not met until after the expiration date of the previous license term. To late renew your license you may complete the Application to Renew Individual License, form LIC 448-29A, or the Application to Renew Business Entity License, form LIC 448-29B, and mail the completed form to the California Department of Insurance, PO Box 311, Sacramento, California 95812-0311.
Additional Information:
Federal law (Title 18 United States Code Section 1033) prohibits anyone who has been convicted of a felony involving dishonesty or a breach of trust from conducting the business of insurance unless they have obtained the written consent of the Insurance Commissioner. It is a violation of this statute to conduct business of insurance without the Commissioners written consent. If you have been convicted of a felony involving dishonesty or a breach of trust then you must attach a copy of this consent. If you have not obtained this written consent you must do so by filing a 1033 Short Form Application for Written Consent prior to filing your application.
Pursuant to Section 1640 of the California Insurance Code, a person authorized to act as an insurance solicitor is not eligible at the same time to act as an insurance agent or broker, and a person authorized to act as either an insurance agent or broker is not eligible at the same time to act as an insurance solicitor.
Note: Licensees who hold an active California personal lines license are not required to file an Application for Insurance License or pay additional licensing fees each time they change authority. Appropriate document filing fees are required when filing an Action Notice or Business Entity Endorsement.
If currently licensed as a resident of another state, upon becoming a California resident, a clearance letter from the former state of residence is required.
Financial Security Requirements for Limited Liability Companies Notice:
Assembly Bill 729 (Koretz, Chapter 312, Statutes of 2005) was signed into law on September 22, 2005. Effective January 1, 2006, the bill requires limited liability companies (LLC's) 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
To obtain insurance licensing information, you may phone the Producer Licensing Bureau at (800) 967-9331 or (916) 322-3555.
To obtain insurance licensing forms by mail, send an e-mail request to: Producer Licensing Bureau.
All fees mailed to the Department must be addressed to: Department of Insurance, PO Box 1139, Sacramento CA 95812-1139.
All filing fees submitted are not refundable, whether or not the application is acted upon or the examination taken.
LIC 642-PL (Rev 03/2009)
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