Authorizing Act with Definitions
Section 1625(a) and (b) of the California Insurance Code reads, in part, that a property broker-agent licensee is a person authorized to act as an insurance agent, broker, or solicitor, and a property broker-agent license is a license so to act.
Licenses to act as a property broker-agent include the type property, which entitles the licensee to transact insurance coverage on the direct or consequential loss or damage to property of every kind.
Property broker-agent license authority is determined by what documents are submitted:
- 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 coverage on the direct or consequential loss or damage to property of every kind.
- An Action Notice of Appointment authorizes the licensee to act as an insurance agent. An insurance agent is a person authorized by and on behalf of an insurer to transact all classes of insurance, except life, disability, or health. 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 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 coverage on the direct or consequential loss or damage to property of every kind.
- The sponsoring business entity licensed in completes a Business entity endorsement, which must be submitted through CDI's Business Entity Endorsement and Termination Online Service.