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CA Department of Insurance
CA Department of Insurance
CA Department of Insurance

Home Protection Company

Formation of a Home Protection Company under the Laws of the State of California

The following information and links are provided as aids only. They are NOT provided as exhaustive lists of applicable authorities. Applicants must comply with all applicable law.

The process of licensing of a new home protection company is fact-intensive and includes, among other things:

  • Detailed actuarial and financial studies and projections indicating the company's anticipated income and disbursements over a period of time;
  • Detailed review of the background of each officer, director, key management personnel of the applicant; and
  • Analysis of the applicant's proposed plan of operation in the State of California.

An electronic copy of the application and supporting documents should be sent to CAB-SF-Intake@insurance.ca.gov. Please note we do not accept password protected emails or links.

Please refer to California Department of Insurance (CDI) Home Protection Company page regarding the sequence of events for the formation of a home protection company.

Instructions and Checklist for Admission of a Home Protection Company

Instructions for Filing

Please note there is a separate fee for an organizational stock permit in addition to the admission fee. See the "Stock Permits" and "License" fee categories on the Schedule of Fees and Charges.

Applicants for a license to operate a home protection company business in the State of California must:

  1. Pay the required fee;
  2. File the necessary papers;
  3. Provide all requested information (summarized on this page); and
  4. Complete and submit all necessary forms.

If the applicant is a foreign corporation presently transacting in another state, reference should be made to the seasoning requirements in Cal. Ins. Code (CIC) section 716.  Please also see 10 Cal. Code Regs. (CCR) section 2570.07 (additional requirements for foreign applicants).

Please note directions in each paragraph below.

Checklist and Instructions

Insurance documents and papers accompanying a formal application for license must be identified numerically in the same sequence shown on the checklist, not only on the document itself, but also in the accompanying letter of transmittal. Please note the filing instructions found in 10 CCR section 2570.09.

Any reference in the documents provided to the applicant by the Commissioner to "insurer", "insured", "premium" or "policy" shall be interpreted as "home protection company", "home protection contract holder", "home protection contract fee" and "home protection contract" respectively, except in the biographical affidavits.

1. Name Approval 

Obtain home protection company name approval before filing for admission.

For name approval by the California Department of Insurance Commissioner, submit a written request to:

 California Department of Insurance
 Corporate Affairs Bureau
 1901 Harrison Street, 6th Floor
 Oakland, CA  94612

Include either the necessary filing fee or a reference to the pending application for admission. See the "Name Approval/Change" fee category on the Schedule of Fees and Charges for associated fees. The department may request for further information.

In the absence of a name conflict or other noncompliance with the Code, names of foreign applicants are customarily reserved for 180 days from the date of the approval letter, and, if an application for admission is timely filed, until (a) the application is denied or (b) the applicant fails to pursue the same in good faith.

A copy of the Commissioner's name reservation and approval letter is automatically mailed to the California Secretary of State, 1230 J Street, Sacramento, CA  95814.  Approval, at least informally, should be likewise obtained from the Secretary of State pursuant to Cal. Corp. Code (CCC) section 2106(b) before the application is filed.

2. Application for License  

The application should be completed in its entirety, stating "NONE" where appropriate.

Before filing, the applicant should make sure it complies with California minimum capital, investment and seasoning requirements. Acceptance of an application for filing or approval of name is not a representation that the applicant qualifies for admission.

Payment of the filing fee is required to file the application. See the "License" fee category on the Schedule of Fees and Charges. Make check payable to the Insurance Commissioner of the State of California. The filing fee is not refundable in the event the application for any reason does not succeed. 

3. Articles of Incorporation  

The application will need to include a copy of the applicant's current Articles of Incorporation. The copy must have a certificate stating it as an "original true copy" and this certificate must be issued by the official of the applicant's home state who has custody of the original. Articles as amended to date or as currently restated are sufficient. It is unnecessary to include all past amendments if the currently complete articles are filed. CIC section 708.

4. By Laws  

The application will need to include the applicant's current bylaws, originally certified by the applicant's corporate secretary. 

5. Appointment of Agent and Attoryney for California and Stipulation as Required by Law for Foreign Applicants.

CIC sections 1600-1604. Appointment of an individual with a California address, preferably with an established place of business, who can be readily located and served with notices, legal process and papers is mandatory. Do not appoint the Insurance Commissioner or a corporation. Company's execution must be acknowledged. Date of agent's acceptance must be on or after the appointment/execution date.

6. Management, Consultant or Employment Conracts 

Submit any such contracts, to be certified by the corporate secretary or assistant secretary over corporate seal to be true copy of same currently in force. This includes a copy or description of any management and cost-sharing arrangements between affiliated companies.

7. Reinsurance Contracts  

File one copy of each reinsurance contract ceding home protection business, certified by corporate secretary or assistant secretary over corporate seal to be a true copy of the contract currently in force.

8. Biographical/Organizational Affidavits and Fingerprints 

The application will need to include Individual Affidavits and Fingerprint(s) from all of its officers, directors, key managerial personnel, and individuals with a 10% or more beneficial ownership in the applicant and the applicant's ultimate controlling parent.  CIC sections 717, 718. The application will also need to include an Organizational Affidavit, completed by an executive officer. The terms "insurer", "insurance company", "insurance law", "insurance employers" should be interpreted as references to both the insurance industry and the home protection industry. Information should be supplied as to the affiant's experience relative to both the insurance industry and the home protection industry.

9. Foriegn Applicants 

Foreign companies must qualify with the Secretary of State to operate an intrastate business in California. This may be done after admission but before company transacts any business in California; write the Secretary of State for the forms to be filed and for instructions and filing fee amount.  CCC section 2105.

10. SEC Registration

If Applicant has made a filing or registration with the Securities and Exchange Commission in connection with a public offering of its shares since January 1 of the third calendar year preceding the filing of the application herein, attach a copy of the applicant's most recent registration statement, including any supplements and amendments thereto and the (final) prospectus.

11. Holding Company System Form "B" Registration Statement

If the applicant is a member of a holding company system (CIC section 1215(h)), file a completed registration statement Form "B" as part of your application for admission, following promulgated Form "B" in 10 CCR section 2683.23 and the instructions for completion. If the holding company has filed a Form 10K with the SEC, please provide copy of such filing and attach exhibits.

12. Authorization for Disclosure of Financial Records

To be completely filled out and signed by applicant's President or Vice President and filed with the Department. CIC section 904, California Government Code section 7473.

13. Functional Staffing Organization Chart

Provide a functional staffing organization chart showing the name and title of all directors, officers and key managerial personnel.

14. Overlapping Management 

The name of each director of the applicant who is a director of any insurer or other home protection company together with the name of all such other insurers or home protection companies.

15. Conflict of Interest Procedures

Provide copies of procedures of the applicant to determine the existence of possible conflicts of interest with each director, officer or key managerial personnel.

16. Plan of Operations

  Provide a copy of the applicant's Plan of Operation as specified in 10 CCR section 2570.06(f).

17. Financial Reporting Requirements

 Provide a copy of the applicant's most recent audited financial statement prepared by  an independent certified public accountant or independent licensed public account. If the applicant's financial statement was not audited, it must be verified by the applicant's president and secretary. 10 CCR section 2570.06(g).

18. Additional Requirements for Foreign Applicants

  A foreign applicant shall also file the following exhibits. Latest annual and quarterly statements to date filed with applicant's home state regulatory official and latest examination report by applicant's home state regulatory official or substitute filing specified in CIC section 12744(e).

19. Update

 Inform the Department of any significant changes which occur or are discovered during the pendency of the application. Supply revised forms if such a change materially affects the accuracy of the forms filed in support of the application.

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