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CA Department of Insurance

AB2557 Overview



Penalties for Transacting without a License

Section 1633 of the California Insurance Code (CIC) permits penalties for transacting without a valid insurance producer license in California of fifty thousand dollars ($50,000).

Background Change Reporting Requirement

California Insurance code Section 1729.2(a) requires an applicant or licensee to notify the commissioner when any of the background information set forth in Section 1729.2(c)(2) changes after the application has been submitted or the license has been issued. CIC 1729.2(a) also states that if the licensee is listed as an endorsee on any business entity license, the licensee shall also provide this notice to any officer, director, or partner listed on that business entity license. More detailed information about CIC 1729.2 including a Background Change Disclosure Form and Instructions (LIC Form 2557) are contained on our website.

Education Provider Monetary Penalties for Minor Instances of Noncompliance

Section 1749.1(c) of the CIC allows the Insurance Commissioner to do the following:

  • rescind or take action against the course, program, provider and seminar, including the imposition of fines and penalties or both;
  • impose monetary penalties in lieu of holding a hearing to rescind approval of the providers who fail to comply with the standards established by the Insurance Commissioner; and,
  • develop regulations that impose monetary penalties and fines against education providers for failing to meet the Commissioner's prelicensing or continuing education curriculum.

Questions concerning the Background Change Reporting Requirements may be directed to:
California Department of Insurance Licensing Background Bureau
300 Capitol Mall, 16th Floor
Sacramento, CA 95814
Telephone (916) 492-3650

Questions concerning Education Provider laws may be directed to:
California Department of Insurance Education Section
320 Capitol Mall
Sacramento, California 95814
Telephone (916) 492-3064

Please include your name, telephone number, license number and e-mail address in all correspondence with the California Department of Insurance.

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