Frequently Asked Questions
This page is intended to address some of the most commonly asked questions regarding the CDI's 1033 Application for Written Consent procedures and requirements. If you need further assistance, please call CDI's Licensing Background Bureau at (916) 492-3650.
- Prohibited Persons
- Application and Fingerprints
- Employer Responsibilities
- Existing Licensees
- Nonresident Applicants and Licensees
- Consent Granted
- Appeal Process
Prohibited Persons - Who must comply? Any and all "Prohibited Persons" who are currently transacting, or engaging in, the business of insurance, or who intend to transact or engage in the business of insurance.
What is the definition of a "Prohibited Person"? Prohibited Person means any person who has been convicted of felony crimes of dishonesty, breach of trust in a state or federal jurisdiction or who has been convicted of any violation of Title 18 U.S.C.§ 1033 (the "Act").
- A "felony" means: "Any crime for which the maximum authorized punishment exceeds one year. Felony includes any crime in any other state, commonwealth, territory or possession that is identified as a felony in that state, or if not identified as a felony, any offense for which the maximum authorized punishment exceeds one year incarceration. In California, it includes any felony crime of dishonesty, breach of trust or violation of Title 18 U.S.C. § 1033 which has been set aside pursuant to California Penal Code Section 1203.4.
- A "conviction" means: A finding of guilt or a plea of guilty, nolo contendere or no contest in a criminal court of the United States or in any state, commonwealth or possession. Successful completion of deferred adjudication and conditional discharges are not convictions. (CCR 2175.2(f))
- "Breach of Trust" means: Crimes including, but not limited to, any offense involving misuse, misapplication, or misappropriation of (1) anything of value held as a fiduciary or (2) anything of value of a public, private or charitable entity. (CCR 2175.2(c))
- "Dishonesty" means: A crime which includes, but is not limited to, any offense involving perjury, bribery, forgery, counterfeiting, false or misleading oral or written statements, deception, fraud, schemes or artifices to deceive or defraud, material misrepresentations and the failure to disclose material facts. (CCR 2175.2(g)).
What is the definition of "Business of Insurance"? "Business of insurance" means: "(1) the writing of insurance, or (2) the reinsuring of risks, by an insurer, including all acts necessary or incidental to such writing or reinsurance and the activities of persons who act, or are officers, directors, agents, or employees of insurers or who are other persons authorized to act on behalf of such persons." (CCR 2175.2(e)).
Application and Fingerprints* What if I am applying for an insurance license? Do I apply for Written Consent to Work in the Business of Insurance before I apply for licensure? Yes. Applicants subject to Title 18 U.S.C., § 1033 are required to obtain written consent from the CDI before any license application shall be considered. The state statutory licensing qualifications and requirements are totally separate from any requirements under Title 18 U.S.C., § 1033. Failure to inform the CDI of a prior felony conviction on a license application could result in a violation of the federal statute as well as constitute grounds for denial of a license.
Who must file the application for consent? The "Prohibited Person" must file the application. California has jurisdiction for issuing written consent to all resident insurance producers and employees of domestic insurers domiciled in California who are "Prohibited Persons." Non-resident insurance producers must file for written consent in the state where the resident license is maintained. Insurers, and employees of foreign insurers domiciled outside of California must file for consent in the insurer's state of domicile.
How do I obtain consent? If you meet the definition of a "Prohibited Person" you must submit:
1) A completed 1033 Short Form Application for Written Consent. Note: The NAIC Short form application does not need to be notarized by a notary of the public for 1033 applicants seeking written consent from the CDI. Any application that is not typewritten will be returned to the applicant. Application forms may also be obtained by requesting them from the Licensing Background Bureau at 320 Capitol Mall, Sacramento, CA 95814 or you may contact them by phone at (916) 492-3650.
2) A non-refundable processing fee in the amount of $160 payable to the California Department of Insurance.
3) One set of fingerprint impressions on fingerprint card form FD-258, including a fingerprint processing fee check in the amount of $58.30 made payable to Accurate Biometrics or use Accurate Biometrics Credit Card Authorization form. For information regarding fingerprinting see Question #7.
4) Two 2" x 2" recent passport photographs attached to the upper right hand corner of the Application for Consent.
5) Certified copies of all court documents setting forth the initial conviction and any subsequent disposition, together with any other relevant documents or information that the Prohibited Person would like to have considered. All such documents must be submitted within 30 days of the receipt by applicant of a notice of deficiency from the CDI.
Where can I have my fingerprints taken? Fingerprint impressions can be taken by any law enforcement agency (police department, sheriff's office, etc.) on the standard fingerprint card form FD-258. The fingerprint card is available from the law enforcement agency that you contact to do the printing or by requesting them from the Licensing Background Bureau at 320 Capitol Mall , Sacramento, CA 95814-4309 or you may contact them by phone at (916) 492-3650. To ensure your fingerprint impressions are properly recorded, you must enter the number "A0042" in the space designated for the "ORI" number; and enter "1033/CIU" in the space designated for "OCA" number on the fingerprint card. Complete the identifying sections of the fingerprint card including your name and social security number. The fingerprint card and the Accurate Biometrics Credit Card Authorization form or a check must be mailed directly to the vendor at:
8680 Greenback Lane, Suite 200
Orangevale, CA 95662.
In lieu of submitting your fingerprint impressions with your application, live scan service is available through Accurate Biometrics. We recommend that that you visit Accurate Biometrics website at www.accuratebiometrics.com or call Accurate Biometrics at (866) 361-9944 to find a fingerprint location near you to have your fingerprints taken prior to submitting your application. Fingerprint impressions will not be accepted from any other source. You must advise Accurate Biometrics that your fingerprints are being submitted for "A0042-1033/CIU."
Where do I send the completed Consent Application? Please mail, along with required processing fees to:
California Department of Insurance
P.O. Box 1139
Sacramento, CA 95812-1139
Please retain a copy of the application and attachments for your records. Any additional information or amendments must be forwarded to the Licensing Background Bureau immediately including the occurrence of any event that could change, enhance or elaborate any answer on a consent waiver application. Failure to file this information in a timely manner may result in denial of written consent or withdrawal of previously granted consent.
Where can I obtain the written consent application forms & fingerprint cards? An Application for Written Consent, along with the necessary fingerprint card may be requested from the Licensing Background Bureau at 320 Capitol Mall, Sacramento, CA 95814-4309 or you may contact them by phone at (916) 492-3650. Copies of the Regulations and other information, including the 1033 Short Form Application for Written Consent are also available on the CDI web site at www.insurance.ca.gov.
How long does the 1033 Consent Application process typically take? The review process takes approximately 30 days once a complete application is received. However, a delay in the submission of your fingerprints or in the receipt of the fingerprint results may result in further delays to review the application.
*Important note: Sections 2175.6 through 2175.9 and 2178 are under review by the Office of Administration Law and, therefore, are pending approval.
Employer Responsibilities - What is the employer's responsibility? It is the responsibility of the employer to ensure that any "Prohibited Person" who is currently employed or being considered for employment has received written consent from the CDI.
Whose responsibility is it to identify "Prohibited Persons" in accordance with Title 18 U.S.C., §1033? It is the responsibility of the employer to ensure that any prohibited person who is currently employed or being considered for employment is not permitted to conduct the business of insurance in accordance with Title 18 U.S.C., § 1033. Persons who fail to comply with the Act face federal sanctions, including fines and imprisonment.
Does the insurance company or an insurance producer who hires temporary employees through an employment agency have an obligation to fulfill the Title 18 U.S.C., § 1033 requirements for those individuals? Yes. Even though these individuals are not employees of the insurance company or insurance producer, they do perform activities that are incidental to the business of insurance.
Existing Licensees - What if I already hold a California resident insurance license? Do I need to apply for consent to work in the Insurance Business? The Act contains no automatic waiver for individuals who may possess a state insurance license or certificate. Any current resident licensee who was granted a license by the CDI following full and complete disclosure of their criminal history shall be deemed to have the Commissioner's temporary consent if the licensee submits an application for written consent within 90 days of the effective date of the 1033 regulations. The 90-day period ends on July 8, 2003. Any current licensee who is a Prohibited Person and who fails to submit an application for Written Consent within the 90 day period will be barred from transacting the business of insurance as set forth in Title 18 U.S.C., § 1033.
The existence of a valid license for a "Prohibited Person" does not waive, excuse, except or exempt an Insurer or other employer from its responsibility under the Act, nor the insurer's or other employer's ultimate responsibility for compliance with the Act.
Can I continue to sell insurance if I am already licensed and discover I am a prohibited person? The Act does not provide an exemption for "Prohibited Persons" who currently hold an insurance license. If you are considered a "Prohibited Person," and you hold a resident insurance license, you have 90 days from the effective date of these regulations to apply for a Consent Waiver and receive temporary consent. The 90 day period will expire on July 8, 2003. Any current licensee who is a prohibited person and who fails to submit an application for written consent within the 90 day period will be barred from transacting the business of insurance. If you fail to comply and you continue to transact or engage in the business of insurance you and your employer can be subject to criminal prosecution, as well as administrative actions for violating the regulations.
Can I receive temporary Consent Approval? Any current resident licensee who was granted a license by the CDI following full and complete disclosure of his or her criminal history shall be deemed to have the Commissioner's temporary consent if the licensee submits an application for written consent within 90 days of the effective date of the CDI's regulations. The 90 day period ends on July 8, 2003.
Nonresident Applicants and Licensees - If I live in a different state than the one in which my current or future employer is located, which state do I file my application in? If you are a licensed insurance producer or a person associated with an insurance producer, then you must apply for consent from the state where the resident insurance producer license is maintained.
If you are an officer, employee, etc. of an insurance company, then you must apply for consent from the state where the insurer is domiciled.
If an applicant has been granted consent to work in the insurance industry by any state, do other states have to honor the consent? Any prohibited person who wishes to engage in the business of insurance in California must apply for 1033 written consent in California, regardless of whether or not they have received 1033 written consent in another state. We will consider the other states decision to grant or deny 1033 consent in our decision.
Consent Granted - Once consent is granted, will it remain in effect indefinitely? No. If the conditions of the consent are not continually met, the consent may be withdrawn. Failure of a "Prohibited Person" to comply with all the terms and conditions will result in the termination of the Written Consent
and summary revocation of the license to transact the business of insurance. The terms and conditions include, but are not limited to the following:
- Any subsequent misdemeanor or felony charge involving dishonesty, breach of trust or a violation of Title 18 U.S.C., § 1033.
- Failure to notify the CDI of any misdemeanor or felony charge involving dishonesty, breach of trust or violation of Title 18 U.S.C., § 1033 against a Prohibited Person.
- The filing of an Administrative sanction against a Prohibited Person.
- Failure to comply with any provisions of the CDI's 1033 Prohibited Persons regulations.
- Failure to notify the CDI upon the filing of any action against a Prohibited Person by a Regulator.
- Failure to amend an application for Written Consent upon a change of job duties.
- Failure to notify employer of status as a Prohibited Person.
- Making materially false or misleading statements, or failure to disclose material information on the application for Written Consent.
Appeal Process - How do I appeal a Notice of Denial? Applicants who have received a notice of denial may request a hearing in writing, within 60 days after the issue of the notice. The written request must be submitted by the Prohibited Person and include:
1) The name, address, telephone and fax number of the Prohibited Person and representative (if any), along with a statement explaining why the Prohibited Person should not be denied the Commissioner's Written Consent.
2) A copy of the Commissioner's Denial of Consent.
3) Copies of any additional documents that were not included in the Prohibited Person's initial application, which support the Prohibited Person's explanatory statement and upon which the Prohibited Person intends to rely at the hearing.
Send an original and one copy of the Request for Hearing and all documents to:
California Department of Insurance Administrative Hearing Bureau, 45 Fremont St., San Francisco, CA 94105
How long does it take for a hearing? An administrative law judge shall hold the hearing within sixty (60) days of the Administrative Hearing Bureau's receipt of the CDI's response to the request for a hearing. Continuances can be requested by either party if necessary.
- Return to Industry Notice
- 18 U.S.C. § 1033-1034
- Authority (Complete text)*
- Application/Fingerprint Requirements, Fees
- 1033 Short Form Application for Written Consent
- Factors Considered for Granting Written Consent
- Termination of Written Consent
- Frequently Asked Questions
*Important note: Sections 2175.6 through 2175.9 and 2178 are under review by the Office of Administration Law and, therefore, are pending approval.
If you need further assistance, please call CDI's Licensing Background Bureau at (916) 492-3650. Please be sure to include your name, telephone number, license number (if applicable), and reference the 1033 Application filing requirement.