AGENTS & BROKERS: Licensing Background Change Reporting Requirements Pursuant To CIC 1729.2
Section 1729.2 of the California Insurance Code requires insurance producer applicants and licensees to notify the Insurance Commissioner in writing, within 30 days, of changes in background information after an application has been submitted or a license has been issued.
Background information is defined as:
- A misdemeanor or felony conviction;
- A filing of felony criminal charges in state or federal court;
- An administrative action regarding a professional or occupational license;
- Discharge or attempt to discharge, in a personal or organizational bankruptcy proceeding, an obligation regarding any insurance premiums or fiduciary funds owed to any company, including a premium finance company, or managing general agent;
- Any admission, or judicial finding or determination, of fraud, misappropriation or conversion of funds, misrepresentation, or breach of fiduciary duty.
Important: Failure to report background changes within 30 days as required under Section 1729.2 of the California Insurance Code could subject a licensee or applicant to formal disciplinary action, including a fine, suspension, denial, restriction, or revocation of the license.
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