Application Procedures-Business Entity Non-Residents
Please follow the steps noted below to file for a business entity license:
Step 1 - Reserve a name for approval - Applicants for a business entity license must use Sircon's Business Entity Name Approval Request to reserve a name.
Note: Please review our Name Approval Criteria and lists of Unacceptable Words/Phrases and Improper Use of Words/Phrases. You are also encouraged to review names that are currently being used by going to Business Entity Name Search program.
Step 2 - Applicants must submit a casualty broker-agent application using Sircon's Business Entity Online Application Service.
Step 3 - To Endorse an individual casualty broker-agent, the business entity must name at least one natural person who holds a California non-resident casualty broker-agent license to represent the business license. After meeting the non-resident endorsement requirement, the business entity is able to endorse California resident individuals on their license (CIC Section 1656).
Endorsees should be named on the Business Entity Application during the initial business entity application filing. Subsequent agent endorsements must be submitted online at Business Entity Endorsement and Termination Online Service (i.e. adding or removing individual licensees who are to transact insurance under authority of its license) (CIC Section 1661).
Each natural person who does not hold an active California casualty broker-agent license must file separately for an individual casualty broker-agent license. This links will provide information on individual filing requirements: Individual Resident Casualty Broker-Agent or Individual Non-Resident Casualty Broker-Agent.
Step 4 - Fees
- License filing fee - two year term: $188
- Business Entity Endorsement fee: $32 per endorsee.
- Renewal fee - two year term: $188
Note: When an application is made to the California Department of Insurance, applicants may apply for what is known as a "property and casualty broker-agent license" by selecting both the property broker-agent and casualty broker-agent license types on their application. Applicants checking both the property broker-agent and casualty broker-agent license types on the application will pay one filing fee. Non-Resident applicants will be issued a license that provides for the same line(s) of authority that it holds in the home state.
Financial Security Requirements for Limited Liability Companies
Limited liability companies (LLCs) are required 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.
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.
The Insurance Commissioner may require such documents as will aid in determining whether the applicant meets the qualifications for a license.
Upon application approval the license can be downloaded or printed by using the CDI's Print or Download Your License service. However, the business entity 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.
- An Action Notice of Appointment, with $32 filing fee, completed by the sponsoring insurance company admitted to California. Pursuant to 10 Cal Code of Regs. Section 2190.22 , 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. A $32 filing fee must be submitted with each Action Notice of Appointment.
- A Bond of Insurance Broker, Form LIC 417-5, in the penal sum of $10,000, by a California admitted surety, completed in the name of the organization and signed by the business entity authorizes the business entity to act as an insurance broker.
All filing fees submitted are not refundable, whether or not the application is acted upon or the examination taken.
For specific questions regarding this license type, please e-mail the Producer Licensing Bureau at Producer Licensing Bureau E-mail or call the CDI's Producer Licensing Toll Free Hotline at (800) 967-9331. Please be sure to include your name, telephone number, license number and e-mail address in all correspondence with the CDI.