Insurance Code — Part 15 | INS — United States — California law | Esheria

Insurance Code

Part 15 of 23 · provisions 2,801–3,000

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This section defines “underwriters’ corps” for this chapter. This chapter must not impair or interfere with the powers or duties of a municipality’s regular fire department. An owner of property cannot treat an underwriters’ corps act as a justification for abandoning the property. Certain domestic insurance-underwriter corporations may maintain an underwriter’s corps at their own expense if they meet the stated fire-prevention and local-business conditions. An underwriter’s corps may enter certain burning or fire-exposed buildings and may remove or protect property from fire or water damage while a fire is happening and immediately after.

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Provisions of Insurance Code

Showing 200 of 4,461

  1. 1555.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 16. Merger of Certain Reciprocal Insurers [1550 - 1559] ( Article 16 added by Stats. 1995, Ch. 728, Sec. 3. )

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    Certain reciprocal-insurer transactions must be filed with the commissioner, who then approves the plan if the proceedings comply with law and agency requirements.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 16. Merger of Certain Reciprocal Insurers [1550 - 1559] ( Article 16 added by Stats. 1995, Ch. 728, Sec. 3. ) ## 1555. (a) If the vote is in the affirmative, a certified copy of all proceedings relating to the proposed transaction shall be filed with the commissioner. If one of the insurers that is a party to the transaction is a foreign incorporated insurer, there shall also be filed with the commissioner evidence of that approval, consent, or authorization that is required by the laws of the state of incorporation of the foreign insurer. If the commissioner finds that the proceedings have been in accordance with the law and his or her requirements, the commissioner shall issue a certificate approving the plan and agreement and the transaction shall become effective (1) in the case of a merger, when the certificate, the agreement of merger, or the certificate of merger, as applicable, and any other documents required by law have been filed with the Secretary of State, unless a future effective date or time is provided in the agreement of merger or certificate of merger, in which event the merger shall be effective at that future effective date or time, (2) in the case of a consolidation, when any documents required by the commissioner have been filed with and approved by the commissioner, unless a future effective date or time is provided in the agreement of consolidation, in which event the consolidation shall be effective at that future effective date or time, or (3) in the case of another form of transaction, when determined by the commissioner. (b) The fee of the commissioner for considering the proposed transaction and issuing a certificate approving the transaction shall be four thousand two hundred fifty dollars ($4,250), payable in advance with the filing with the commissioner of the first papers relating to the proposed transaction. Five dollars ($5) shall be charged for each signed and sealed or certified copy of the certificate issued as part of the same transaction in which the original certificate is issued. (Added by Stats. 1995, Ch. 728, Sec. 3. Effective January 1, 1996.)
  2. 1556.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 16. Merger of Certain Reciprocal Insurers [1550 - 1559] ( Article 16 added by Stats. 1995, Ch. 728, Sec. 3. )

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    In certain mergers involving domestic reciprocal and incorporated insurers, the surviving insurer must file the merger agreement and required attachments with the Secretary of State after the merger is approved.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 16. Merger of Certain Reciprocal Insurers [1550 - 1559] ( Article 16 added by Stats. 1995, Ch. 728, Sec. 3. ) ## 1556. (a) If the surviving entity is a domestic incorporated insurer in a merger in which a domestic reciprocal insurer is a constituent party, after approval of the merger by the constituent reciprocal insurer and constituent incorporated insurer, the surviving incorporated insurer shall file in the office of the Secretary of State a copy of the agreement of merger and attachments required under paragraph (1) of subdivision (g) of Section 1113 of the Corporations Code. (b) If the surviving entity is a domestic reciprocal insurer in a merger in which a domestic incorporated insurer is a constituent party, after approval of the merger by the constituent disappearing domestic incorporated insurer and constituent reciprocal insurer, the surviving reciprocal insurer shall file in the office of the Secretary of State a copy of the agreement of merger and attachments required under paragraph (2) of subdivision (g) of Section 1113 of the Corporations Code. (Added by Stats. 1995, Ch. 728, Sec. 3. Effective January 1, 1996.)
  3. 1557.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 16. Merger of Certain Reciprocal Insurers [1550 - 1559] ( Article 16 added by Stats. 1995, Ch. 728, Sec. 3. )

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    A merger plan must transfer all rights and property to the surviving insurer and make it assume the merged insurers’ obligations and liabilities.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 16. Merger of Certain Reciprocal Insurers [1550 - 1559] ( Article 16 added by Stats. 1995, Ch. 728, Sec. 3. ) ## 1557. (a) Any plan of merger, consolidation, or other unification under this article shall provide that all rights and properties of the parties to the plan of merger, consolidation, or other unification shall accrue to, and become the rights and properties of, the surviving or consolidated or continuing insurer which shall succeed to and assume all the obligations and liabilities of the merged, consolidating, or transferring insurer in the same manner as if incurred or contracted by the surviving, consolidated, or continuing insurer. (b) All rights of creditors and all liens upon the property of each of the constituent incorporated insurers and constituent reciprocal insurers shall be preserved unimpaired, provided that those liens upon property of a disappearing incorporated insurer or disappearing reciprocal insurer shall be limited to the property affected thereby immediately prior to the time the merger is effective. (c) Any action or proceeding pending by or against any disappearing incorporated insurer or disappearing reciprocal insurer may be prosecuted to judgment, which shall bind the surviving incorporated insurer or surviving reciprocal insurer, or the surviving incorporated insurer or surviving reciprocal insurer may be proceeded against or substituted in its place. (Added by Stats. 1995, Ch. 728, Sec. 3. Effective January 1, 1996.)
  4. 1558.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 16. Merger of Certain Reciprocal Insurers [1550 - 1559] ( Article 16 added by Stats. 1995, Ch. 728, Sec. 3. )

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    When certain reciprocal insurers merge, consolidate, or reorganize into a stock insurer, the plan must spell out how subscribers’ equity interests will be converted or exchanged, with commissioner approval and fairness safeguards.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 16. Merger of Certain Reciprocal Insurers [1550 - 1559] ( Article 16 added by Stats. 1995, Ch. 728, Sec. 3. ) ## 1558. In the event a domestic reciprocal insurer is merged, is consolidated, or is part of a reorganization pursuant to the procedures specified in this article and the surviving, consolidated, or continuing company is a stock incorporated insurer, the plan shall provide for the manner of converting or exchanging the equity interests of current subscribers in the reciprocal insurer’s equity into (a) shares, interests, or other securities of the surviving corporation, and (b) if any interests of the subscribers are not to be converted solely into shares, interests, or other securities of the surviving corporation, cash, property rights, interests, warrants, options, premium credits, or securities that may be in addition to, or in lieu of, shares, interests, or other securities of the surviving corporation. However, notwithstanding the foregoing, the equity interests of current subscribers in the reciprocal insurer’s equity may be converted or exchanged solely into premium credits if the plan and agreement so provide but only at the subscriber’s election. The conversion or exchange of the equity interests of subscribers shall be on terms fair, just, and equitable to the parties to the transaction, their subscribers, shareholders, owners, and creditors, as approved by the commissioner, and the commissioner shall require an opinion as to the fairness of those terms and an appraisal of the fair value of the domestic reciprocal insurer, together with the respective equity interests therein, by one or more qualified disinterested persons appointed by the reciprocal insurer with the approval of the commissioner, unless the commissioner finds that such an opinion or appraisal is not necessary to protect the interest of current subscribers of the reciprocal insurer. The expense of any such opinion and appraisal shall be borne by the reciprocal insurer. Any person holding a subscription note or other debt instrument evidencing a capital contribution to the domestic reciprocal insurer shall be entitled upon demand to have redeemed that note or debt instrument for cash or securities if securities are offered to current policyholders as part of the transaction. The plan may authorize the sale of securities to members of the governing board, officers, or employees of the domestic reciprocal insurer or its attorney-in-fact, or to subscribers or former subscribers of the domestic reciprocal insurer, in accordance with the provisions of Article 8 (commencing with Section 820) of Chapter 1 of Part 2 of Division 1. Nothing in this section shall preclude the issuance of different securities, subject to the approval of the commissioner, provided that comparable securities shall be issued at prices not less than the conversion or exchange values of any such securities distributed to current subscribers. The conversion or exchange shall constitute full payment and discharge of the subscribers’ equity interests in the domestic reciprocal insurer, and the subscribers shall have no other rights with respect thereto, except for rights relating to a continuing debt or equity interest that a former subscriber holds in the surviving insurer. (Added by Stats. 1995, Ch. 728, Sec. 3. Effective January 1, 1996.)
  5. 1559.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 16. Merger of Certain Reciprocal Insurers [1550 - 1559] ( Article 16 added by Stats. 1995, Ch. 728, Sec. 3. )

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    A certified copy of the merger certificate is conclusive evidence of the merger for certain insurer merger structures.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 16. Merger of Certain Reciprocal Insurers [1550 - 1559] ( Article 16 added by Stats. 1995, Ch. 728, Sec. 3. ) ## 1559. (a) For all purposes for a merger in which the surviving entity is a domestic reciprocal insurer and a domestic incorporated insurer is not a constituent corporation as that term is defined under Section 161 of the Corporations Code, a copy of the certificate of merger duly certified by the commissioner is conclusive evidence of the merger of the constituent reciprocal insurers, either by themselves or together with any foreign incorporated insurers, into the surviving reciprocal insurer. (b) For all purposes for a merger in which the surviving entity is a domestic reciprocal insurer and a domestic incorporated insurer is a “constituent corporation” as that term is defined under Section 161 of the Corporations Code, a copy of the certificate of merger duly certified by the Secretary of State is conclusive evidence of the merger of the constituent reciprocal insurers, either by themselves or together with constituent incorporated insurers, into the surviving reciprocal insurers. (c) For all purposes for a merger in which the surviving entity is a domestic incorporated insurer and the disappearing entity is a domestic reciprocal insurer, a copy of the certificate of merger duly certified by the Secretary of State is conclusive evidence of the merger of the constituent insurers. (Added by Stats. 1995, Ch. 728, Sec. 3. Effective January 1, 1996.)
  6. 1560.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    This article applies only to domestic reciprocal insurers organized after 1974 to provide medical malpractice insurance.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560. This article shall apply only to domestic reciprocal insurers organized after 1974 to provide medical malpractice insurance. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  7. 1560.01.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    A domestic reciprocal insurer described in Section 1560 may be converted into an incorporated stock insurer if it follows the article’s procedure.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.01. By following the procedure specified in this article, any domestic reciprocal insurer described in Section 1560 may be converted into an incorporated stock insurer. To that end, it may provide and carry out a plan for the conversion by complying with the requirements of this article. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  8. 1560.02.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    This section defines terms used in Article 17 on converting certain reciprocal insurers into incorporated stock insurers.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.02. The definitions in this section apply to the following terms when used in this article: (a) “Adoption date” means the date the governing body adopts the plan of conversion. (b) “Converted insurer” means the incorporated stock insurer into which a domestic reciprocal insurer has been converted in accordance with the provisions of this article. (c) “Converting insurer” means, for a plan of conversion under this article, the domestic reciprocal insurer that is converting under the plan. (d) “Effective date” means the date upon which the conversion of a domestic reciprocal insurer is effective, as specified in the amended articles of incorporation of the reciprocal holding company filed with the Secretary of State, as a result of conversion proceedings under this article. (e) “Eligible subscribers” means the subscribers of the domestic reciprocal insurer who are of record, fully paid-up, and otherwise in good standing on the domestic reciprocal insurer’s adoption date and on its effective date, but shall not include those persons covered solely under a reporting endorsement to a claims-made policy on either date. (f) “Governing body” means the body exercising subscribers’ rights selected pursuant to Section 1308 for the domestic reciprocal insurer. (g) “Independent director” means a member of the governing body of the reciprocal holding company who does not own shares, options, or any other equity interests in the stock holding company. (h) “Person” means an individual, partnership, firm, association, corporation, joint-stock company, limited liability company, trust, government or governmental agency, state or political subdivision of a state, public or private corporation, board, association, estate, trustee, or fiduciary, or any similar entity. (i) “Plan of conversion” or “plan” means a plan adopted by a domestic reciprocal insurer in compliance with this article. (j) “Policy” means an individual or group policy of insurance issued by a domestic reciprocal insurer. If a policy takes a form other than an individual form but holders of certificates or other interests under the policy are treated by the domestic reciprocal insurer as if they were holders of individual policies, the domestic reciprocal insurer may provide in its plan of conversion under this article that such a certificate or other interest is deemed to be a policy and deem the holder of the certificate or other interest to be an owner of a policy. Such a provision shall be for the sole purpose of determining the rights, if any, of policyholders of the domestic reciprocal insurer to vote upon and receive consideration under the plan of conversion and shall not affect the other voting rights and qualifications of members of the domestic reciprocal insurer. (k) “Policyholder” means the holder of a policy other than a reinsurance contract or a person covered solely under a reporting endorsement to a claims-made policy. (l) “Reciprocal holding company” means a corporation organized under the laws of this state subject to the General Corporation Law as set forth in the Corporations Code. The articles of incorporation of a reciprocal holding company shall contain provisions stating the following: (1) It is a reciprocal holding company organized under this article. (2) One purpose of the reciprocal holding company is to hold not less than 51 percent of the voting stock of a stock holding company, which in turn holds all of the voting stock of a converted insurer. In addition, the reciprocal holding company shall own not less than 51 percent of the total stockholders’ equity of the stock holding company at all times. (3) It is not authorized to issue voting stock. (4) Its subscribers have the rights specified in Section 1560.11 and in its articles of incorporation and bylaws. (5) Its assets and liabilities are subject to inclusion in the estate of the converted insurer in any proceedings successfully prosecuted against the converted insurer under Article 14 (commencing with Section 1010) or Article 14.3 (commencing with Section 1064.1) of Chapter 1. (m) “Rights in surplus” for a domestic reciprocal insurer, means rights of subscribers to a return of that portion of the surplus that has not been apportioned or declared by the governing body for policyholder dividends. “Rights in surplus” includes rights of subscribers to a distribution of surplus in liquidation or conservation of the insurer under this code, or in a dissolution or winding up. “Rights in surplus” does not include any right expressly conferred solely by the terms of an insurance policy. (n) “Stock holding company” means a corporation authorized to issue one or more classes of capital stock, the corporate purposes of which include holding all of the voting stock in an insurer that has been converted from a domestic reciprocal insurer into a stock insurer in proceedings under this article in which a reciprocal holding company is formed. (o) “Subscriber” means a person who, by the records of the domestic reciprocal insurer and its rules and regulations, is deemed to be a holder of a subscriber’s interest in the domestic reciprocal insurer. On and after the effective date of a plan of conversion, the term “subscriber” means a member of a reciprocal holding company, as provided in Section 1560.11. (p) “Subscriber interests” mean the interests of subscribers arising under this code and the rules and regulations of the domestic reciprocal insurer or otherwise by law. (q) “Voting stock” means securities of any class or any ownership interest having voting power for the election of directors, trustees, or management of a person, other than securities having voting power only because of the occurrence of a contingency. All references to a specified percentage of voting stock of any person mean securities having the specified percentage of the voting power in that person for the election of directors, trustees, or management of that person, other than securities having voting power only because of the occurrence of a contingency. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  9. 1560.03.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    A domestic reciprocal insurer’s conversion plan must set out the conversion structure, get board and subscriber approval, obtain written commissioner consent, and be filed after those approvals.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.03. A plan of conversion adopted by a domestic reciprocal insurer for the establishment of a reciprocal holding company shall provide that the domestic reciprocal insurer will become a stock insurer, that the subscribers of the domestic reciprocal insurer will become subscribers of a reciprocal holding company, that the reciprocal holding company will acquire at least 51 percent of the voting stock of the stock holding company, and that the stock holding company will acquire all of the voting stock of the converted insurer. The plan of conversion shall include appropriate proceedings for amending the domestic reciprocal insurer’s rules and regulations and other charter documents to give effect to the conversion from a domestic reciprocal insurer into a stock corporation. The plan shall be: (a) As approved by a resolution of two-thirds of the governing board. The resolution shall specify the reasons for and the purposes of the proposed conversion of the domestic reciprocal insurer and the manner in which the conversion is expected to benefit and serve the best interests of the policyholders. (b) Submitted to the commissioner for consent in writing, subject to the provisions of Section 1560.05, by an application executed by an authorized officer of the domestic reciprocal insurer and accompanied by the following documents, or true and correct copies of the following documents: (1) The proposed plan of conversion. (2) The proposed articles of incorporation of each corporation that is a constituent corporation of the conversion. (3) The proposed bylaws of each corporation that is a constituent corporation of the conversion. (4) A list of the officers and directors, together with their biographies in the form customarily required by the commissioner, of each corporation that is a constituent corporation of the conversion. (5) The resolution of the governing board of the domestic reciprocal insurer, certified by the secretary of the domestic reciprocal insurer, authorizing the conversion under this article, and a report of the percentage of directors approving the resolution. (6) Financial statements, which may be prepared on a pro forma basis, in the form required by the commissioner. (7) A plan of operations for the converted insurer. (8) A summary of the plan of conversion and drafts of written materials to be mailed to subscribers seeking their approval of the plan, including an information statement containing, at a minimum, the information required under Section 1560.06. (9) A description of any plans for an initial public offering, including a description of the maximum percentage of stock to be sold, the process to be used in offering the stock and setting the initial sale price for the stock, and how policyholders would be treated in an initial public offering. (10) A description of any plans for the transfer of assets and liabilities, including any subsidiaries, to the reciprocal holding company. (11) Any final rulings relating to the plan of reorganization obtained from any federal government agency, and all supporting documents submitted to the agency in connection with the rulings. (12) A copy of the proposed form of notice of special meeting to be sent to members pursuant to Section 1560.06. (13) Other relevant information that the commissioner may require. (c) Approved by two-thirds vote of the subscribers of the domestic reciprocal insurer voting at a meeting of the subscribers called for that purpose, subject to the provisions of Section 1560.06. (d) Filed in the office of the commissioner after receipt of the commissioner’s consent, and after having been approved as provided in Sections 1560.05 and 1560.06. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  10. 1560.05.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    The commissioner must review a reciprocal insurer’s conversion plan, hold a public hearing before the policyholder vote, and consent only if the stated conditions are met.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.05. (a) The commissioner shall examine the plan submitted pursuant to Section 1560.03. As a part of the examination the commissioner shall order a public hearing of the plan after written notice of the hearing to the domestic reciprocal insurer and its subscribers and the public, all of whom shall have the right to appear at the hearing. The hearing shall occur before the policyholder vote. The commissioner may require as a condition of consent that the domestic reciprocal insurer make modifications of the proposed plan that the commissioner finds necessary for the protection of policyholders. The commissioner shall consent to the plan if he or she finds all of the following: (1) The plan is fair, just, and equitable to the insurer and its policyholders. (2) The plan does not violate the law. (3) The converted insurer will, after the conversion, satisfy the requirements for the issuance of a license to write the line or lines of insurance for which it is presently licensed. (4) The plan will not require subscribers to pay additional funds to retain their rights in surplus, but nothing herein is intended to prohibit or restrict a reciprocal insurer that is converting to a stock insurer by establishing a reciprocal holding company from offering to its subscribers subscription rights that are in addition to the rights in surplus to be held in the reciprocal holding company. (5) Any stock issued to officers, directors, employees, or employee benefit plans for their benefit, if any, will be fair, just, and equitable and not hazardous to policyholders, stockholders, or creditors. (6) The plan provides sufficient means for the accumulated earnings, cash, and/or other non-operating assets held by the reciprocal holding company to inure to the exclusive benefit of its members. (b) The commissioner may appoint one or more actuarial, financial, or other consultants, including legal counsel, as the commissioner finds necessary to advise the commissioner in making the determination of whether the proposed plan of conversion meets the applicable requirements of this article. The domestic reciprocal insurer is responsible for the reasonable fees and expenses of any actuarial, financial, or other consultants, including legal counsel, appointed, and for the mailing and publication of notices to the domestic reciprocal insurer and its members. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  11. 1560.06.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    For a domestic reciprocal insurer conversion meeting, the governing board, chairperson, or president must call the meeting, notice must be mailed at least 45 days ahead with an information statement, and voting may be by ballot, in person, or proxy.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.06. The meeting of subscribers prescribed by subdivision (c) of Section 1560.03 shall be called by the governing board, the chairperson of the board, or the president of the domestic reciprocal insurer. Notice of the meeting shall be given to eligible subscribers by mail at least 45 days prior to the date set for the meeting to subscribers of the domestic reciprocal insurer of record on the date the plan of conversion was adopted by the governing board. The notice shall be accompanied by an information statement describing the proposed reorganization. The information statement shall include, at a minimum, all of the following items: (a) A full copy and summary of the plan of reorganization. (b) A discussion addressing the reasons and purposes of the proposed restructuring, which shall include a comparison to a dereciprocalization. (c) An analysis of the benefits and risks associated with the proposed reorganization to the reciprocal company and its policyholders. (d) An explanation of how the restructuring will benefit policyholders, as well as a description of any potential risks to policyholder interests and a description of how the policyholders’ rights differ at the reciprocal holding company level from those in the existing company. (e) A description of any stock issuance, including any shares or options to be issued to directors, officers, agents, employees, or employee benefit plans, for their benefit, that will be made in conjunction with the plan of conversion, if any, and the guidelines and parameters that shall apply in the event stock is to be issued, including a detailed discussion of subscription rights that are to be granted to policyholders. (f) The converted insurer’s proposed articles of incorporation and bylaws. (g) Any proposed articles and bylaws of the reciprocal holding company and any other entities to be created in the reorganization. (h) Financial information. (i) Any other information that the commissioner determines is necessary to make a complete and adequate disclosure to policyholders. Voting shall be by ballot, in person, or by proxy. A quorum shall consist of 10 percent of the subscribers of the domestic reciprocal insurer entitled to vote at the meeting. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  12. 1560.07.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    A conversion plan for certain reciprocal insurers may let specified insiders buy some stock, but it cannot let them exceed set ownership limits.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.07. Nothing in this article shall be deemed to prohibit the inclusion in the plan of conversion of provisions under which the insurer’s officers, directors, employees, agents, and employee benefit plans for their benefit may be entitled, in accordance with reasonable classifications of those individuals and employee benefit plans as may be included in the plan, to purchase for cash, at the same price as offered to the public in the initial public offering, voting stock not purchased by subscribers upon exercise of subscription rights. Nothing in this code shall be deemed to prohibit the establishment of stock option, incentive, and share ownership plans customary for publicly traded companies in the same and similar industries. The plan may not permit those persons to acquire any of the following: (a) Greater than 25 percent of the voting stock issued pursuant to the plan for a domestic reciprocal insurer having assets in excess of two hundred million dollars ($200,000,000) or 35 percent for a domestic reciprocal insurer having assets of two hundred million dollars ($200,000,000) or less. (b) Greater than 25 percent of the stockholders’ equity for a medical malpractice reciprocal insurer having assets in excess of two hundred million dollars ($200,000,000) or 35 percent for a medical malpractice reciprocal insurer having assets of less than two hundred million dollars ($200,000,000). (c) Unexercised options that exceed 20 percent of the number of issued and outstanding shares. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  13. 1560.08.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    Certain directors, officers, agents, and employees of a domestic reciprocal insurer must not receive fees, commissions, or other valuable consideration for helping with a conversion, except as allowed in the commissioner-approved plan.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.08. No director, officer, agent, or employee of the domestic reciprocal insurer shall receive any fee, commission, or other valuable consideration whatsoever, other than regular salary and compensation, for in any manner aiding, promoting, or assisting in the conversion except as set forth in the plan approved by the commissioner. This provision shall not be deemed to prohibit the payment of reasonable fees and compensation to attorneys at law, accountants, and actuaries for services performed in the independent practice of their professions, even though they may also be directors of the domestic reciprocal insurer. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  14. 1560.09.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    Before a conversion plan becomes effective, the domestic reciprocal company may amend or withdraw it by a two-thirds board resolution. Any amendment needs the commissioner’s written consent, and amendments cannot be materially disadvantageous to policyholders or members unless the required public-hearing conditions are met.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.09. At any time before that plan of conversion becomes effective, the domestic reciprocal company may, by resolution of at least two-thirds of the governing board, amend the plan of conversion or withdraw the plan of conversion. Any plan amendment shall require the written consent of the commissioner. For a plan amendment, all references in this article to the plan of conversion shall be deemed to refer to the plan as amended, but no amendment shall be deemed to change the adoption date of the plan of conversion. No amendment may change the plan of conversion in a manner that the commissioner determines is materially disadvantageous to policyholders of the insurer or members of the reciprocal holding company, unless a further public hearing is held on the plan as amended, if the amendment is made after the initial public hearing, or if the plan as amended is submitted for reconsideration by the subscribers if the amendment is made after the plan has been approved by the subscribers. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  15. 1560.10.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    After the commissioner consents to a conversion plan and the plan is filed, the commissioner must issue a new certificate of authority, and the Secretary of State must file the relevant incorporation documents.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.10. Upon consent by the commissioner to the plan of conversion of a domestic reciprocal insurer and filing of the plan of conversion in accordance with the provisions of this article, the commissioner shall issue a new certificate of authority to the converted insurer. Upon issuance of the certificate of authority to a domestic reciprocal insurer and subject to subdivision (a) of Section 110 of the Corporations Code, the Secretary of State shall accept for filing the articles of incorporation of the reciprocal holding company, the stock holding company, and the converted insurer. The plan is effective upon the filing of the articles of incorporation or the certificate of amendment of the articles of incorporation. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  16. 1560.11.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    This section sets post-conversion ownership, voting, notice, and approval rules for reciprocal holding companies and related stock companies.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.11. (a) Upon the effective date of a plan of conversion in accordance with Section 1560.10, the domestic reciprocal insurer immediately becomes a stock corporation, the interests and rights in surplus of its subscribers are extinguished, the subscribers of the insurer immediately become members of the reciprocal holding company, and are granted rights in surplus in the reciprocal holding company equivalent to those rights in surplus previously held in the converted company, all of the voting stock initially issued by the converted insurer is owned by the stock holding company, and all of the voting stock initially issued by the stock holding company is owned by the reciprocal holding company. Except for the subscribership interests in the reciprocal insurer, which becomes membership interests in the reciprocal holding company, nothing herein is intended to, nor shall eliminate, curtail or otherwise diminish the contract rights of policyholders of a converted company. The stock holding company may thereafter, subject to compliance with Article 8 (commencing with Section 820) of Chapter 1, issue securities to other persons. After the effective date, owners of policies that are issued by a stock insurer that has been converted from a domestic reciprocal insurer pursuant to proceedings under this article shall become members of the reciprocal holding company immediately upon issuance of the policies, except that an owner solely of a reporting endorsement to a claims-made policy shall not be members of the reciprocal holding company. (b) The converted insurer shall be a continuation of the original reciprocal insurer, and the conversion shall in no way annul, modify, or change any of the original reciprocal insurer’s existing suits, rights, contracts, or liabilities except as provided in the approved plan. The converted insurer shall exercise all the rights and powers and perform all the duties conferred or imposed by law upon insurers writing the classes of insurance written by it, and shall retain the rights and contracts existing prior to conversion subject to the effect of the plan. (c) From the effective date, the reciprocal holding company shall hold at least 51 percent of the issued and outstanding voting stock of the stock holding company and the stock holding company thereafter shall at all times hold all of the issued and outstanding voting stock of the converted insurer. The stock holding company may issue additional voting stock to the reciprocal holding company and, in addition, to other persons an amount of voting stock and securities convertible into voting stock, if in the aggregate, the issued and outstanding voting stock of the stock holding company held by the reciprocal holding company is not less than 51 percent of the issued and outstanding voting stock of the stock holding company. For purposes of the 51 percent limitation, any issued and outstanding securities of the stock holding company that are convertible into voting stock are considered issued and outstanding voting stock, provided that securities having voting power only because of the occurrence of a contingency shall not be considered securities convertible into voting stock where the contingency has not occurred. From the effective date, the reciprocal holding company’s equity interest in the stock holding company shall not be less than 51 percent of the total stockholders’ equity in the stock holding company. For purposes of the 51 percent limitation, any issued and outstanding securities of the stock holding company that are convertible into equity securities, whether voting or nonvoting, shall be considered stockholders’ equity. Debt securities that include a default contingency conversion interest shall not be considered stockholders’ equity for compliance with the foregoing limitation. (d) The commissioner shall retain jurisdiction over the reciprocal holding company organized pursuant to this article. Except as provided in this code, a reciprocal holding company is subject to the provisions of the General Corporation Law in like manner with other corporations. However, provisions of that law referring to shareholders or subscribers shall be applied as though those provisions referred to the members of a reciprocal holding company. For purposes of Section 1215.5, the reciprocal holding company shall be considered as if it were an insurance company. The commissioner shall retain jurisdiction over the issuance of debt securities in accordance with the protections provided in Article 8 (commencing with Section 820) of Chapter 1. (e) If any proceedings under Article 14 (commencing with Section 1010), Article 14.3 (commencing with Section 1064.1), Article 14.5 (commencing with Section 1065.1), or Article 15.5 (commencing with Section 1077), of Chapter 1, are brought naming as a party a stock insurer created as a result of proceedings authorized by this article, the reciprocal holding company formed as part of the conversion automatically becomes a party to the proceedings. All of the assets of the reciprocal holding company, including, but not limited to, its interest in the stock holding company formed pursuant to this article, are deemed assets of the estate of this stock insurer to the extent necessary to satisfy claims of persons against the stock insurer who have claims falling within the priorities established in paragraphs (1) to (5), inclusive, of subdivision (a) of Section 1033. Claims of persons in their capacity as members of the reciprocal holding company shall be claims falling within the priority established in paragraph (6) of subdivision (a) of Section 1033. A reciprocal holding company may not dissolve, liquidate, or wind up and dissolve without the prior written approval of the commissioner or the court pursuant to proceedings brought pursuant to Article 15 (commencing with Section 1070) of Chapter 1. (f) With respect to the management, records, and affairs of a reciprocal holding company and except as otherwise provided in this article, a member of a reciprocal holding company has the same character of rights and relationship as a stockholder has toward a domestic stock life insurer subject to the provisions of this code. (g) Each member of a reciprocal holding company is entitled to one vote on each matter coming to a vote at any meeting of members, regardless of the number of policies that the member holds. (h) Notice of all meetings of members of a reciprocal holding company, whether annual or special, shall be given in writing to the members entitled to vote. The notice shall be given by the secretary, assistant secretary, or other persons charged with that duty. If there is no officer so charged, or if he or she neglects or refuses this duty, notice may be given by any director. At the option of the converted insurer, the notice may be imprinted on premium notices or receipts or on both. A notice may be given to any member either personally, or by mail, or other means of written communication, charges prepaid, addressed to the member at his or her address appearing on the books of the insurer, or given by the member to the converted insurer for the purpose of notice. If a member gives no address, and if there is no address on the books of the insurer, notice shall be deemed to have been given the member if sent by mail or other means of written communication addressed to the place where the principal office of the converted insurer is situated, or if published at least once in a newspaper of general circulation in the county in which the office is located and in the newspaper that has the largest daily circulation in this state. Notice of any meeting of members shall be sent to each member entitled to notice not less than 14 days before a meeting. Notice of any meeting of members shall specify the place, the day, and the hour of the meeting and the general nature of the business to be transacted. For any member who gives no address and has no address on the books of the insurer, notice of an annual meeting to be held at the time and place specified is deemed adequate if published at least once in each of four successive weeks in a newspaper of general circulation in the county in which the principal office of the converted insurer is located and in the newspaper that has the largest daily circulation in this state. If the notice is so published, no other notice of the meeting is required. (i) The presence in person or by proxy of 5 percent of the members of a reciprocal holding company entitled to vote at any meeting constitutes a quorum for the transaction of all business of the reciprocal holding company, including, but not limited to, the amendment of the articles of incorporation or bylaws of the reciprocal holding company. (j) Any required member approval shall be by the affirmative vote of a majority of the members who vote, or a higher percentage of the members as may be required by law or the articles of incorporation, a quorum being present. (k) The governing body of the reciprocal holding company shall be comprised of not less than 6 nor more than 18 directors. A majority of the reciprocal holding company directors shall be policyholders of the converted insurer. Unless the plan provides that at least a majority of the directors of the boards of the stock holding company and the converted insurer are also directors of the reciprocal holding company, the commissioner shall determine whether the proposed composition of the boards of directors of each of the constituent corporations of the reciprocal holding company system, as provided in the articles of incorporation and bylaws, facilitate the control of the converted insurer by the reciprocal holding company. No term shall continue longer than six years. In the absence of such provisions, each director shall be elected for a term of one year. All directors shall hold office for the term for which they are elected and until their successors are elected and qualified. The bylaws of the reciprocal holding company shall set forth a procedure for establishing reciprocal holding company independent directors in the event that the stock holding company issues securities. Not less than one of every six directors of the reciprocal holding company shall be so designated. A director may, but need not, be a member of the reciprocal holding company of which he or she is acting as director. Vacancies in the board of directors may be filled by a majority of the remaining directors, though less than a quorum. Each director so elected shall hold office until the next annual meeting. (l) Member interests in a reciprocal holding company are exempt from Article 8 (commencing with Section 820) of Chapter 1. A description of the member interests and related factual disclosure shall not be considered to be an inducement to buy insurance in violation of Section 10430. Any promise of returns, profits, or distributions, or representations with regard to the benefits of membership, made as an inducement in connection with the issuance and delivery of a policy is subject to Section 10430 and the remedy provided in Section 10433. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  17. 1560.12.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    For five years before and after a conversion plan’s effective date, no person acting alone or with others may acquire 5% or more of a converted insurer’s voting securities without the commissioner’s prior consent.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.12. (a) Prior to, and for a period of five years following, the effective date of the plan of conversion, no person or group of persons acting in concert shall directly or indirectly offer to acquire or acquire in any manner the beneficial ownership of 5 percent or more of any class of voting securities of a converted insurer or of a person that controls, as defined by subdivision (c) of Section 1215, the converted insurer, without the prior consent of the commissioner. Any application for that approval shall contain information as the commissioner may require and shall be accompanied by a filing fee in an amount equal to the filing fee specified in Section 1215.2. (b) In the event of any violation of this section, or of any action that, if consummated, would constitute a violation, all voting securities of the converted insurer or of the person acquired by any person in excess of the maximum amount permitted to be acquired by the person pursuant to this subdivision shall be deemed to be nonvoting securities of the converted insurer or of that person. The violation or action may be enforced or enjoined by an appropriate proceeding commenced by the converted insurer, a person, the commissioner, any policyholder or stockholder of the converted insurer, or the person on behalf of the converted insurer or the person in the superior court in the judicial district in which the converted insurer has its home office or in any other court having jurisdiction. The court may issue any order it finds necessary to cure the violation or to prevent the proposed action. In addition to the foregoing, whenever it appears to the commissioner that any person has committed a violation of this section, the commissioner may proceed as provided in Article 14 (commencing with Section 1010) of Chapter 1 to take possession of the property of the converted insurer and to conduct the business thereof. (c) For the purposes of this section, “beneficial ownership,” with respect to voting securities, means the sole or shared power to vote, or direct the voting of, voting securities or the sole or shared power to dispose, or direct the disposition, of voting securities. (d) For the purposes of this section, “voting security” includes voting stock as defined in Section 1560.02, any preorganization certificate or subscription, including subscription rights issued pursuant to a plan of conversion, or any security convertible, with or without consideration, into voting security, or carrying any warrant or right to subscribe for, or purchase any, voting security, or any such warrant or right. (e) For the purposes of this section, “offer” includes an offer to buy or acquire, solicitation of an offer to sell, tender offer for, or request or invitation for tenders of a security or interest in a security for value. (Amended by Stats. 2017, Ch. 417, Sec. 10. (AB 1696) Effective January 1, 2018.)
  18. 1560.13.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    Unless the conversion plan says otherwise, the insurer’s governing body and officers continue as the converted insurer’s directors and officers until replacements are elected and qualified.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.13. Unless otherwise provided in the plan of conversion, the governing body and officers of the domestic reciprocal insurer shall serve as directors and officers of the converted insurer until new directors and officers have been duly elected and qualified pursuant to the articles of incorporation and bylaws of the stock company. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  19. 1560.14.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    This section sets deadlines for lawsuits and judicial review related to conversion plans and plan amendments for reciprocal insurers.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.14. (a) Notwithstanding any other provision of law and except as otherwise provided in subdivision (b), actions concerning any plan of conversion, proposed plan of conversion, plan amendment, or proposed plan amendment under this article or any acts taken or proposed to be taken under this article shall be commenced within one year after the plan of conversion or plan amendment is filed in the office of the commissioner pursuant to subdivision (d) of Section 1560.03 or Section 1560.10, or six months from the effective date of the plan of conversion, whichever is later. If the plan of conversion is withdrawn, the actions or acts shall be commenced within six months from the date the governing body approves a resolution to withdraw the plan. If an action concerns or arises out of a plan amendment or proposed plan amendment made under Section 1560.09, the applicable time period is measured from the filing, effective date, or approval of withdrawal of the plan amendment, whichever is later. (b) Judicial review of any act of the commissioner or any other governmental body or officer concerning or arising out of any plan of conversion, proposed plan of conversion, plan amendment, or proposed plan amendment under this article may only be had by filing a petition for a writ of mandate within 30 days of the date of the act. However, any petition seeking judicial review shall be filed no later than 30 days from the effective date of the plan of conversion or plan amendment, whichever is the subject of the petition. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  20. 1560.15.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    Offers or sales of securities issued under an approved conversion plan are exempt from Article 8 of Chapter 1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.15. The offer or sale of securities issued pursuant to the plan of conversion developed and approved in accordance with the provisions of this article, shall be exempt from Article 8 (commencing with Section 820) of Chapter 1. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  21. 1560.16.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    The commissioner may make, amend, or rescind rules and regulations needed to carry out this article, and may charge and collect the insurer’s reasonable state-incurred expenses for carrying out those duties.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.16. The commissioner shall have the authority from time to time, to make, amend, and rescind any rules and regulations necessary to carry out the provisions of this article. The commissioner shall also have the authority to charge and collect from the insurer for the actual amount of expenses reasonably incurred by the state in discharge of the commissioner’s duties hereunder. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  22. 1560.17.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    After a conversion is completed and the certificate of authority under Section 1560.10 is issued, the Secretary of State must accept for filing a verified copy of the converted insurer’s articles of incorporation.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.17. Upon completion of the act of conversion and issuance of the certificate of authority under Section 1560.10, the Secretary of State shall accept for filing a verified copy of the articles of incorporation of the converted insurer. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  23. 1560.18.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    This section allows a converted insurer’s articles and plan of conversion to be amended, but only after specified approvals, written consent, and filing requirements are met.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.18. (a) The articles of incorporation of a converted insurer that have been adopted pursuant to a plan of conversion and filed with the Secretary of State in accordance with Section 1560.10 may be further amended after the effective date pursuant to applicable law. The plan of conversion may be amended in other respects after the effective date of the plan as specified in this section. An amendment of the plan of conversion shall take effect upon filing with the Secretary of State after compliance with the following: (1) Approval by a resolution of at least two-thirds of the board of directors of the converted insurer. The resolution shall specify the reasons for and the purposes of the proposed amendment. (2) Submission to the commissioner for consent in writing, subject to the provisions of Section 1560.05. (3) Approval by at least two-thirds of those members of the corporation who were subscribers of the converting insurer and entitled to vote on the original plan of conversion approved pursuant to subdivision (c) of Section 1560.03 and who vote at a meeting called for that purpose. (4) Filed in the office of the commissioner after having been consented to and approved as contemplated by paragraphs (2) and (3). (b) If an amendment proposed under subdivision (a) would adversely affect the rights of one or more classes of subscribers, but not all of those subscribers, then only the subscribers of each class whose rights would be adversely affected by the proposed amendment are entitled to vote on the proposed plan amendment. (c) A subscriber meeting prescribed by paragraph (3) of subdivision (a) shall be called by the board of directors, the chairperson of the board, or the president of the converted insurer. Notice of the meeting shall be given to subscribers entitled to vote at the meeting by mail at least 45 days prior to the date set for the meeting. Voting shall be by ballot, in person, or by proxy. A quorum consists of 10 percent of the subscribers of the converted insurer entitled to vote at the meeting. (d) At any time before the plan amendment becomes effective, the converted insurer may, by resolution of at least two-thirds of the board of directors, amend the plan amendment or withdraw its plan amendment. For an amendment to a plan amendment, all references in this section to the plan amendment shall be deemed to refer to the plan amendment as amended. Any amendment of the plan amendment shall require the written consent of the commissioner. No amendment shall be deemed to change the date of adoption of the plan amendment. No amendment made after approval by the subscribers as provided in paragraph (3) of subdivision (a) may change the plan amendment in a manner that the commissioner determines is materially disadvantageous to any of the affected subscribers unless the plan amendment as amended is submitted for reconsideration under the procedures prescribed for the original plan amendment, subscriber approval. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  24. 1560.19.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. )

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    A converting domestic reciprocal insurer may keep using “reciprocal” in its new stock insurer name if the name also identifies it as a stock insurer and the commissioner finds the name is not likely to mislead the public.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Reciprocal Insurers [1280 - 1560.19] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers [1560 - 1560.19] ( Article 17 added by Stats. 1998, Ch. 421, Sec. 2. ) ## 1560.19. If the name of a domestic reciprocal insurer converting to a stock insurer pursuant to this article includes the word “reciprocal,” the new stock insurer may continue to use the word “reciprocal” in its name if the name includes a word or words that identify the new stock insurer as a stock insurer and the commissioner finds that the continued use of the word “reciprocal” in its name is not likely to mislead or deceive the public. (Added by Stats. 1998, Ch. 421, Sec. 2. Effective January 1, 1999.)
  25. 1561.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Conditions of Doing Business [1561- 1561.] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    A state or foreign law that tries to regulate a domestic insurer’s noninsurance affiliate just because the insurer applied for or holds a certificate of authority is treated as unreasonable, and the commissioner may refuse an initial certificate of authority in response.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Conditions of Doing Business [1561- 1561.] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 1561. Any law or ruling of any state of the United States or any foreign country which shall attempt to assume jurisdiction over, or to authorize regulation or supervision of, a noninsurance affiliate of a domestic insurer, where such attempt is based solely upon the domestic insurer applying for or holding a certificate of authority to do business in such state or foreign country, whether such attempt be by registration or through disclosure, reports, examinations, or other devices imposed on either the insurer or its noninsurance affiliate, directly or indirectly, shall be deemed to be an unreasonable law. Upon finding that such unreasonable law has been applied to a domestic insurer or its noninsurance affiliate by such state or foreign country, the commissioner may refuse to grant an initial certificate of authority, but not a renewal of an existing certificate of authority, to an insurer organized under the laws of such state or foreign country thereafter applying to him for authority to do business in this state. As used in this section, “affiliate” means a person that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, the domestic insurer. (Added by Stats. 1969, Ch. 867.)
  26. 1580.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    This section defines “alien insurer” as a foreign insurer organized under the laws of a jurisdiction other than a U.S. state.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1580. As used in this article, the term “alien insurer” means a foreign insurer organized under the laws of any jurisdiction other than a State of the United States. (Repealed and added by Stats. 1941, Ch. 51.)
  27. 1581.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    An alien insurer may not transact insurance in this state until it makes the deposit required by this article and complies with the other provisions of the article, subject to stated exceptions.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1581. Except as otherwise expressly provided for particular insurers, an alien insurer shall not transact any insurance in this State without first making the deposit required by this article nor, subject to the exception specified in Section 1582, without first complying with all other provisions of this article. (Repealed and added by Stats. 1941, Ch. 51.)
  28. 1582.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    An alien insurer’s deposit must equal the minimum paid-in capital required for comparable incorporated insurers, unless the commissioner accepts a larger deposit.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1582. The amount of such deposit shall be equal to the minimum amount of the paid-in capital required for admission of incorporated insurers issuing policies on a reserve basis and transacting the same classes of insurance which such alien insurer is transacting in the United States, but the commissioner may accept such deposit in excess of such amount. Such deposit may be treated as a part of the assets of the depositing insurer. For the purpose of computing the amount of the deposit, the value of the securities shall not be estimated in excess of the par value nor of the market value thereof. (Amended by Stats. 1951, Ch. 542.)
  29. 1583.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    An alien insurer must keep the required deposit continuously maintained while related U.S. insurance obligations remain outstanding, and the deposit must meet specified securities and placement rules.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1583. The deposit required by Section 1581 (a) Shall be continuously maintained so long as any obligation arising out of any insurance transacted by such alien insurer in the United States remains in existence for any purpose whatever; (b) Shall consist of securities authorized for investment of the assets of domestic incorporated insurers; (c) Shall be in addition to any deposits required by law for purposes other than those specified in Section 1586; (d) May be made with the insurance authority, or with the auditor, controller or general fiscal officer of any State of the United States in which such alien insurer is authorized to transact insurance, or otherwise held in trust as provided by the laws of the State of deposit, for the purposes specified in Section 1586. (Repealed and added by Stats. 1941, Ch. 51.)
  30. 1585.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    If the required deposit is not maintained in California, it counts only if a certificate from the deposit state’s proper authority is delivered to the commissioner at least annually and whenever the commissioner requires.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1585. If such deposit is not so maintained in this State, it shall be deemed to be in existence as required by this article only when a certificate, issued by the proper authority of the State of deposit and showing in detail the constituent securities thereof and the purpose thereof, is delivered to the commissioner at least annually and at such other times as may be required by the commissioner. (Repealed and added by Stats. 1941, Ch. 51.)
  31. 1586.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    A maintained deposit must be held for the benefit and security of policyholders, and sometimes creditors, of the alien insurer in the United States.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1586. Such deposit, if maintained in this State, shall be for the benefit and security of all the policyholders and creditors of such alien insurer in the United States, and if maintained in another State, for the benefit and security of all the policyholders, or of all the policyholders and creditors, of such alien insurer in the United States. (Repealed and added by Stats. 1941, Ch. 51.)
  32. 1587.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    The commissioner must specially deposit certain securities in the State Treasury and label the packages with the insurer’s name.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1587. Securities deposited with the commissioner pursuant to this article shall be specially deposited by him in the State Treasury, in packages marked with the name of the insurer from whom the securities were received. (Repealed and added by Stats. 1941, Ch. 51.)
  33. 1588.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    A solvent depositing insurer may collect income from deposited securities and may replace and withdraw securities when it deposits qualifying replacement securities.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1588. As long as the depositing insurer is solvent and the deposited securities are sufficient under this article, it may collect the income on the deposited securities. From time to time it may withdraw such securities if it deposits other securities, of the character and value specified in this article in the stead of those to be withdrawn, but deposited securities shall not be withdrawn from the State Treasury except upon the written order of the depositing insurer, indorsed by the commissioner or, if such indorsement is refused, under the authority of some court of competent jurisdiction. (Repealed and added by Stats. 1941, Ch. 51.)
  34. 1589.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    When an insurer deposits securities with the commissioner, the commissioner must issue certificates and collect specified fees.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1589. Whenever a deposit is made with the commissioner, he or she shall issue to the depositing insurer a certificate under his or her official seal stating the items and amount of securities so deposited, and their value, to the best of his or her knowledge. In case of withdrawal and substitution, he or she shall issue a supplemental certificate of similar nature. The commissioner shall require the payment of seventy-two dollars ($72), in advance, as a fee for issuing the first certificate provided for in this article to each insurer, and twenty-five dollars ($25) for each additional certificate or each supplemental certificate evidencing any withdrawal, substitution, or other change in the securities deposited. There shall be no other or additional fee for attaching the commissioner’s seal to a securities deposit schedule in those instances. The fees prescribed herein are separate from and not cumulative upon those prescribed by Article 11 (commencing with Section 939), Chapter 1. (Amended by Stats. 2017, Ch. 534, Sec. 31. (AB 1699) Effective January 1, 2018.)
  35. 1590.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    The commissioner must require a $44 advance fee for filing a certificate of deposit of securities under this article.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1590. The commissioner shall require the payment of forty-four dollars ($44), in advance, as a fee for filing a certificate of deposit of securities under this article. (Amended by Stats. 2017, Ch. 534, Sec. 32. (AB 1699) Effective January 1, 2018.)
  36. 1591.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    Every admitted alien insurer must file an annual statement with the commissioner by March 1 on a form the commissioner prescribes.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1591. In addition to complying with all other applicable requirements of this code, every admitted alien insurer shall on or before the first day of March in each year after the year 1941, file with the commissioner a statement on a form prescribed by him, showing as of the 31st day of December then next preceding, the following information: (a) All of its assets within the United States on deposit with officers of any state thereof for the benefit and security of all the policyholders, or of all the policyholders and creditors, of such alien insurer within the United States. Such assets so deposited are designated “general state deposits.” (b) All of its assets within the United States, other than general state deposits, on deposit with officers of any state thereof for the benefit and security of all the policyholders, or policyholders and creditors, of such alien insurer within the state of deposit or of certain classes of policyholders, or policyholders and creditors, either within the state of deposit or within the United States. Such assets so deposited are designated “special state deposits.” The value to be allowed in such statement for any special state deposit shall not exceed the liability secured thereby. (c) All of its assets within the United States, other than general state deposits and special state deposits, held by any trustee for the benefit and security of all the policyholders or of all the policyholders and creditors, of such alien insurer within the United States. Such assets so held are designated “trusteed assets.” (d) The amount of interest receivable, accrued at the date of such statement on the general state deposits, the special state deposits, and the trusteed assets of such alien insurer, if such interest is collectible by the State or trustee. (e) All of the reserves and other liabilities arising out of policies or obligations issued, assumed or incurred by such alien insurer in the United States. Said reserves and other liabilities are designated as “liabilities in the United States.” For the purpose of determining the liabilities in the United States of such alien insurer there may be deducted: (1) From the amount of such liabilities for unpaid losses, the amount, included therein, of reinsurance recoverable thereon from insurers authorized to do business in any state of the United States, subject to the same limitations as are contained in Sections 922.2 to 922.4, inclusive, and in Sections 922.6 and 922.8. (2) From the amount of such liabilities for unearned premiums, first, the unearned portion, included in such amount, of premiums receivable by such alien insurer from its agents or policyholders under policies issued by it in the United States and not more than 90 days past due on the date of such statement, and second, subject to the same limitations as are contained in Section 922.4, the unearned portion, included in such amount of reinsurance premiums receivable by such alien insurer from other insurers authorized to do business in any state of the United States. (3) The ratable portion, included in such liabilities, of the gross liabilities and reserves on risks reinsured, in whole or in part, by an alien insurer which complies with this article and includes in the statements required thereby all reserves and liabilities arising out of such reinsurance, or, subject to the same limitations as are contained in Sections 922.2 to 922.8, inclusive, by another insurer which is authorized to transact insurance in any state of the United States, except in the case of excess loss and catastrophe reinsurance where the deduction shall be on the basis of the actual reinsurance premiums and the actual reinsurance terms. (4) Those liabilities in the United States, pertaining to any asset in the United States of such alien insurer, other than the assets described in subdivisions (a), (b), (c), and (d), but such deduction shall in no case exceed that portion of the value of such asset which is applicable to the liability pertaining thereto. (5) If such alien insurer is a life insurer, the amount of the unpaid principal and interest of any loan made by it to the holder of, and solely on the security of, any policy of life insurance or annuity contract issued or assumed by it, on the life of or to any person in the United States. Such amount shall in no case exceed the amount of the reserve required to be maintained on such policy or annuity contract by such insurer. Such amount is designated as “policy loans in the United States.” (f) Such further information required by the commissioner, as he deems necessary to apply the provisions of this article. (Amended by Stats. 1963, Ch. 271.)
  37. 1592.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    Alien insurers must file the required statement in quadruplicate in Los Angeles, and trustees must file certificates about trusteed assets. The commissioner must distribute the copies and can later require similar statements.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1592. The statement required by Section 1591 shall be verified in the manner prescribed in Sections 903 and 903.5 and the certificate of each trustee in the United States holding trusteed assets of the alien insurer shall be filed, showing the description and amount of the trusteed assets and the purpose for which they are held. The statement shall be filed in quadruplicate by the alien insurer with the office of the department in Los Angeles. Upon receipt of the four copies, the commissioner shall ensure that one copy is maintained at the department’s office in Los Angeles, one copy at the department’s office in the San Francisco Bay area, and one copy at the department’s office in Sacramento. The commissioner may at other times require an admitted alien insurer to file similar statements, showing the information specified in Section 1591 with respect to another date prescribed by the commissioner. (Amended by Stats. 2020, Ch. 184, Sec. 6. (SB 1255) Effective January 1, 2021.)
  38. 1593.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    This section defines “trusteed surplus in the United States” for an alien insurer.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1593. The excess of the sum of those items in such statement, which are described in subdivision (a), (b), (c) and (d) of Section 1591, over the liabilities in the United States of such alien insurer is designated the “trusteed surplus in the United States” of such alien insurer. (Added by Stats. 1941, Ch. 51.)
  39. 1594.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    If an alien insurer’s U.S. trusteed surplus is below the required minimum, the commissioner must calculate the deficiency and demand a written repair within 60 to 90 days. If the deficiency is not fixed, the commissioner may suspend or revoke authority, stop new policies, or take further action.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1594. Whenever it appears to the commissioner that the trusteed surplus in the United States of an alien insurer is less than an amount equal to the minimum amount of the capital paid in or available cash assets required by this code for the classes of insurance transacted by such alien insurer in the United States, he shall determine the amount of such deficiency and make requisition upon such alien insurer in writing, addressed to its attorney in the United States or to its United States manager, to repair such deficiency within such time, not less than 60 nor more than 90 days from the service of such requisition, as he may therein designate. The commissioner may revoke or suspend the certificate of authority of such alien insurer or order it to cease issuing new policies in the United States, while such deficiency exists. If at the expiration of the period designated in such requisition such alien insurer has failed to repair such deficiency, the commissioner may proceed against it under the provisions of Article 14, Chapter 1, Part 2, Division 1 as against an insurer whose condition is such that its further transaction of business will be hazardous to its policyholders, or creditors, or to the public. (Amended by Stats. 1951, Ch. 542.)
  40. 1595.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    Certain trusts for admitted alien insurers must use approved U.S. trustees, keep all trusteed assets in the United States, and get commissioner approval for trust deed amendments.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1595. Whenever an admitted alien insurer is required or permitted to deposit assets with a trustee for the benefit and security of its policyholders, or of its policyholders and creditors, in the United States, the trustee of any such trust hereafter created shall be a solvent bank or trust company in the United States acceptable to the commissioner and authorized to act as such trustee by the laws of any State or of the United States. All trusteed assets shall be continuously kept within the United States. Any such trust heretofore created and now existing and any such trust hereafter created and existing when such alien insurer seeks to be admitted, shall be continued in accordance with the terms of the instrument creating it, unless inconsistent with the provisions of this article, in which case said instrument shall, after reasonable notice to and hearing of the alien insurer by the commissioner, be amended to conform to the requirements of this article. No amendment of any deed of trust, whether heretofore or hereafter created, shall be effective unless approved in writing by the commissioner. If the trustees of any such trust heretofore created are natural persons, and if the number of such trustees is reduced, by death, resignation, or from any other cause, to less than three, then the commissioner shall require the substitution for such trustees of a solvent bank or trust company in the United States acceptable to him and authorized to act as such trustee by the laws of any State or of the United States. The commissioner may from time to time approve modifications of, or variations in, any deed of trust, which in his judgment are not prejudicial to the interests of the people of this State. (Added by Stats. 1941, Ch. 51.)
  41. 1596.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    An alien insurer admitted or seeking admission may make a deed of trust for certain assets, but withdrawals from the trust generally need the commissioner’s written approval, subject to listed exceptions.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1596. To satisfy the purposes of this article, any alien insurer admitted or seeking to be admitted is hereby authorized to make and execute a deed of trust by virtue of which any assets of an alien admitted insurer are held by a trustee as trusteed assets within the meaning of subdivision (c) of Section 1591. Such deed of trust shall: (a) Vest the legal title to the trusteed assets in the trustee and its successors lawfully appointed, in trust for the benefit and security of all the policyholders, or of all the policyholders and creditors, of such alien insurer within the United States; (b) Provide for the substitution of a new trustee in the event of a vacancy by death, resignation or from any other cause, subject to the approval of the commissioner; (c) Require that the trusteed assets shall at all times be maintained within the United States as a trust fund separate and distinct from all other assets, and that the trustee shall continuously maintain a record at all times sufficient to identify such fund; (d) Prescribe the conditions, satisfactory to the commissioner and not inconsistent with the purposes of this article, under which any or all income, earnings, dividends or interest accumulations of such fund may be paid over to the United States manager of such alien insurer; (e) Prohibit the withdrawal, other than as provided in accordance with subdivision (d), of any trusteed assets from such fund without the written approval of the commissioner, except as follows: 1. For the purpose of making general State deposits required by law in any State. 2. For the purpose of paying obligations due from such alien insurer to policyholders and creditors in the United States, and for the purpose of making special State deposits required by law in any State, if such payments and deposits do not impair the trusteed surplus in the United States of such alien insurer to an amount less than the minimum amount specified in Section 1594, and such fact is certified to the trustee by the insurer or its United States manager duly authorized for that purpose. 3. For the purpose of substituting other assets permitted by law and at least equal in value to those to be withdrawn, upon the specific written direction of the United States manager or an assistant United States manager or other representative in the United States of such alien insurer when duly empowered and acting pursuant to either general or specific written authority previously given or delegated by the board of directors thereof, except as provided in the paragraph numbered 5 of this subdivision. 4. For the purpose of transferring such assets to an official conservator, rehabilitator, or liquidator pursuant to an order of a court of competent jurisdiction. 5. In the case of an alien life insurer organized under the laws of the Dominion of Canada or of any province thereof, the provisions of this section applicable to the United States manager or an assistant United States manager or other representative in the United States of such alien insurer shall be deemed to refer to the president, vice president, secretary or treasurer of such insurer at its principal place of business in said Dominion or province thereof, when duly authorized for such purpose. (Added by Stats. 1941, Ch. 51.)
  42. 1596.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    A trustee may hold trusteed assets in a nominee’s name if allowed by the law authorizing the trustee to act as trustee.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1596.5. Trusteed assets may be held by a trustee in the name of a nominee of the trustee, when permitted by and in accordance with the law authorizing the trustee to act as trustee. For the purposes of this article, the trustee is deemed to have legal title to trusteed assets so held. (Added by Stats. 1947, Ch. 162.)
  43. 1597.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    An alien insurer may treat certain written approvals from the supervising insurance official in another state as meeting the approval requirements, and must send proof and written notice to the commissioner.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1597. In respect of the appointment or substitution of a trustee in another state in which an admitted alien insurer is authorized to transact insurance, in respect of withdrawal of trusteed assets held in the other state (except withdrawals as provided in Section 1596), and in respect of the amendment of such deed of trust not affecting the interests or security of the beneficiaries thereof, written approval under any provision in the deed of trust which requires such written approval by the official of such other state, supervising insurance therein, shall be deemed compliance with any applicable approval requirements of Sections 1595 and 1596. Where an alien insurer organized under the laws of the Dominion of Canada or of any province thereof maintains trusteed assets in another state and under the deed of trust written approval is required by an official supervising insurance in any state in which such insurer is authorized to transact insurance and in which it heretofore maintained and hereafter continues to maintain a general state deposit at least equal in amount to the deposit required by Section 1582, written approval by such official in respect of the appointment or substitution of a trustee thereunder, in respect of withdrawal of such trusteed assets (except withdrawals as provided in Section 1596), and in respect of the amendment of such deed of trust not affecting the interests or security of the beneficiaries thereof, shall also be deemed compliance with any applicable approval requirements of Sections 1595 and 1596. The alien insurer shall furnish proof of approvals authorized by this section to and notify the commissioner in writing of such appointment or substitution, of the nature and extent of such withdrawal, and of the text of such amendment. (Amended by Stats. 1981, Ch. 714, Sec. 265.)
  44. 1598.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    The commissioner may examine trusteed assets of an alien admitted insurer and may require the trustee to file a certified statement about those assets and amounts.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1598. The commissioner may from time to time examine the trusteed assets of any alien admitted insurer pursuant to Section 736, and may from time to time require the trustee holding trusteed assets of an alien admitted insurer to file with the commissioner a statement, in such form as he may prescribe, certifying such trusteed assets and the amounts thereof. Refusal or neglect on the part of such trustee to comply with such requirement shall be ground for the revocation of such alien insurer’s certificate of authority or for proceedings against it under the provisions of Article 14, Chapter 1, Part 2, Division 1. (Added by Stats. 1941, Ch. 51.)
  45. 1599.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. )

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    The commissioner must require a $29 fee, paid in advance, for filing each certificate of a trustee required by Section 1592.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Alien Insurers [1580 - 1599] ( Article 2 repealed and added by Stats. 1941, Ch. 51. ) ## 1599. The commissioner shall require the payment of twenty-nine dollars ($29), in advance, as a fee for filing each certificate of a trustee required to be filed by Section 1592. (Amended by Stats. 2017, Ch. 534, Sec. 33. (AB 1699) Effective January 1, 2018.)
  46. 16.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

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    This section says that in this code, “shall” means mandatory and “may” means permissive, unless the context shows otherwise.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 16. As used in this code the word “shall” is mandatory and the word “may” is permissive, unless otherwise apparent from the context. (Enacted by Stats. 1935, Ch. 145.)
  47. 1600.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Agent for Service of Process [1600 - 1605] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    Foreign insurers must designate and keep on file an agent for service of process with the commissioner, and admitted insurers must keep that appointment continuously in place while they hold a valid certificate of authority.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Agent for Service of Process [1600 - 1605] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1600. The commissioner shall require every foreign insurer, as a condition precedent to receiving and holding a certificate of authority, to file and maintain in the commissioner’s office a writing designating an agent for service of process. The agent designated may be any person residing in this state, including, but not limited to, any corporate officer of the insurer. The writing shall state the name of the agent and his or her place of business in this state with sufficient particularity so that he or she can readily be found by peace officers or process servers. Appointment of an agent reasonably available for service of papers, notice, proof of loss, summons or other process during business hours shall be continuously maintained by every admitted insurer subject to this article while it holds a valid and unrevoked certificate of authority. (Amended by Stats. 1999, Ch. 808, Sec. 1. Effective January 1, 2000.)
  48. 1600.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Agent for Service of Process [1600 - 1605] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    A foreign insurer’s designated agent may resign by filing a signed statement with the insurance commissioner, and the insurer must then appoint and file a new agent if the agent dies, resigns, or leaves California.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Agent for Service of Process [1600 - 1605] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1600.5. An agent designated by a foreign insurer as provided in this article may file with the insurance commissioner a written statement of resignation as such agent which shall be signed and execution thereof shall be duly acknowledged by the agent. Thereupon, the authority of the agent to act in such capacity shall cease and the commissioner shall forthwith give written notice of such resignation by mail to the insurer addressed to its principal office as shown by his records. If an agent who has been appointed by a foreign corporation as provided in this article dies or resigns or removes his residence from the State of California, the insurer shall forthwith file with the commissioner an appointment of a new agent on a form provided by the commissioner for such purpose and pay the filing fee therefor, and such filing shall be deemed to revoke any prior designation of agent. (Added by Stats. 1963, Ch. 1917.)
  49. 16000.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 1. General Provisions [16000 - 16002] ( Article 1 added by Stats. 1998, Ch. 510, Sec. 1. )

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    This section defines “state of emergency” for this chapter.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 1. General Provisions [16000 - 16002] ( Article 1 added by Stats. 1998, Ch. 510, Sec. 1. ) ## 16000. As used in this chapter, “state of emergency” means a state of emergency or local emergency as defined in Section 8558 of the Government Code. (Added by Stats. 1998, Ch. 510, Sec. 1. Effective September 15, 1998.)
  50. 16001.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 1. General Provisions [16000 - 16002] ( Article 1 added by Stats. 1998, Ch. 510, Sec. 1. )

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    This section says the chapter applies to insurers that insure real or personal property in the state, and also to other insurer classes the commissioner decides should participate.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 1. General Provisions [16000 - 16002] ( Article 1 added by Stats. 1998, Ch. 510, Sec. 1. ) ## 16001. This chapter shall apply to all insurers insuring real or personal property in the state, and any other classes of insurers that the commissioner determines should participate in emergency disaster preparation and assistance under this chapter. (Added by Stats. 1998, Ch. 510, Sec. 1. Effective September 15, 1998.)
  51. 16002.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 1. General Provisions [16000 - 16002] ( Article 1 added by Stats. 1998, Ch. 510, Sec. 1. )

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    Disaster assessment teams are to determine only the staffing and support needs of insurers handling anticipated claims.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 1. General Provisions [16000 - 16002] ( Article 1 added by Stats. 1998, Ch. 510, Sec. 1. ) ## 16002. The purpose and function of the disaster assessment teams is solely to determine the staffing and support needs of insurers in handling anticipated claims. (Added by Stats. 1998, Ch. 510, Sec. 1. Effective September 15, 1998.)
  52. 1601.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Agent for Service of Process [1600 - 1605] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    The initial filing fee for appointing an agent for service of process cannot be charged separately, except as included in the certificate-of-authority application fee; afterward, the commissioner must require a $72 advance fee for filings by admitted foreign or alien insurers.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Agent for Service of Process [1600 - 1605] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1601. (a) A fee shall not be charged, except as included in the application for certificate of authority fee provided by Article 3 (commencing with Section 699) of Chapter 1, for filing the initial appointment of an agent for service of process under this article by an applicant for admission. (b) Thereafter, the commissioner shall require the payment of seventy-two dollars ($72), in advance, as a fee for filing the appointment of an agent for service of process, or stipulation, or both by every admitted foreign or alien insurer pursuant to this article. (Amended by Stats. 2017, Ch. 534, Sec. 34. (AB 1699) Effective January 1, 2018.)
  53. 16010.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 2. Emergency Disaster Assessment [16010 - 16016] ( Article 2 added by Stats. 1998, Ch. 510, Sec. 1. )

    Verify source ↗

    The provision states that insurance disaster assessment teams are necessary and appropriate to establish for an adequate disaster response.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 2. Emergency Disaster Assessment [16010 - 16016] ( Article 2 added by Stats. 1998, Ch. 510, Sec. 1. ) ## 16010. In order to ensure an adequate response to disasters, the Legislature finds it necessary and appropriate to establish insurance disaster assessment teams. (Added by Stats. 1998, Ch. 510, Sec. 1. Effective September 15, 1998.)
  54. 16010.5.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 2. Emergency Disaster Assessment [16010 - 16016] ( Article 2 added by Stats. 1998, Ch. 510, Sec. 1. )

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    The commissioner must establish insurance disaster assessment teams under this chapter.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 2. Emergency Disaster Assessment [16010 - 16016] ( Article 2 added by Stats. 1998, Ch. 510, Sec. 1. ) ## 16010.5. The commissioner shall establish insurance disaster assessment teams in accordance with the provisions of this chapter. (Added by Stats. 1998, Ch. 510, Sec. 1. Effective September 15, 1998.)
  55. 16011.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 2. Emergency Disaster Assessment [16010 - 16016] ( Article 2 added by Stats. 1998, Ch. 510, Sec. 1. )

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    Insurance disaster assessment teams may be established by the commissioner, and participating insurers must submit qualified representative names; each team may have no more than seven insurance representatives.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 2. Emergency Disaster Assessment [16010 - 16016] ( Article 2 added by Stats. 1998, Ch. 510, Sec. 1. ) ## 16011. (a) Each team shall consist of not more than seven insurance representatives. Insurers doing business in this state that want to participate in the insurance disaster assessment teams shall submit the names of qualified representatives to the commissioner. (b) The commissioner may establish one or more insurance disaster assessment teams, and may provide for different teams for different locations and different types of disasters. (c) The commissioner may assign a representative of the commissioner to accompany the team or teams. The representative shall complete the appropriate Standardized Emergency Management Systems training. (Added by Stats. 1998, Ch. 510, Sec. 1. Effective September 15, 1998.)
  56. 16012.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 2. Emergency Disaster Assessment [16010 - 16016] ( Article 2 added by Stats. 1998, Ch. 510, Sec. 1. )

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    If there is a state of emergency involving property damage, the commissioner may require an insurance disaster assessment team to assemble.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 2. Emergency Disaster Assessment [16010 - 16016] ( Article 2 added by Stats. 1998, Ch. 510, Sec. 1. ) ## 16012. Upon the occurrence of any state of emergency involving property damage, the commissioner may require any insurance disaster assessment team to assemble for the purpose of assessing the extent, type, and degree of insured damage involved in the emergency. (Added by Stats. 1998, Ch. 510, Sec. 1. Effective September 15, 1998.)
  57. 16013.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 2. Emergency Disaster Assessment [16010 - 16016] ( Article 2 added by Stats. 1998, Ch. 510, Sec. 1. )

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    State and local law enforcement officials must allow an insurance disaster assessment team into any disaster area once the incident commander says it is safe and practical. The commissioner is responsible for coordinating and dispatching these teams.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 2. Emergency Disaster Assessment [16010 - 16016] ( Article 2 added by Stats. 1998, Ch. 510, Sec. 1. ) ## 16013. State and local law enforcement officials shall permit an insurance disaster assessment team to have access to any disaster area as soon as determined safe and practical by the incident commander. The commissioner shall be responsible for the coordination and dispatch of insurance disaster assessment teams to disaster areas. (Added by Stats. 1998, Ch. 510, Sec. 1. Effective September 15, 1998.)
  58. 16014.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 2. Emergency Disaster Assessment [16010 - 16016] ( Article 2 added by Stats. 1998, Ch. 510, Sec. 1. )

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    The insurance disaster assessment team may use listed techniques to assess damage.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 2. Emergency Disaster Assessment [16010 - 16016] ( Article 2 added by Stats. 1998, Ch. 510, Sec. 1. ) ## 16014. The insurance disaster assessment team may use any of the following techniques to assess the amount of damage: (a) Ground surveying on foot or vehicle, or aerial surveying if necessary. (b) Analysis of data provided by others. (Added by Stats. 1998, Ch. 510, Sec. 1. Effective September 15, 1998.)
  59. 16015.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 2. Emergency Disaster Assessment [16010 - 16016] ( Article 2 added by Stats. 1998, Ch. 510, Sec. 1. )

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    The insurance disaster assessment team must make a general assessment of the amount and types of damage suffered.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 2. Emergency Disaster Assessment [16010 - 16016] ( Article 2 added by Stats. 1998, Ch. 510, Sec. 1. ) ## 16015. The insurance disaster assessment team shall make a general assessment of the amount and types of damage suffered in an attempt to identify the overall scope of damage. (Added by Stats. 1998, Ch. 510, Sec. 1. Effective September 15, 1998.)
  60. 16016.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 2. Emergency Disaster Assessment [16010 - 16016] ( Article 2 added by Stats. 1998, Ch. 510, Sec. 1. )

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    The insurance disaster assessment team must prepare a report and submit it to the commissioner within five days after the assessment ends, unless the commissioner authorizes a later submission.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 2. Emergency Disaster Assessment [16010 - 16016] ( Article 2 added by Stats. 1998, Ch. 510, Sec. 1. ) ## 16016. The insurance disaster assessment team shall compile its findings into a report and submit the report to the commissioner as soon as practical, but not more than five days after completion of the assessment unless authorized by the commissioner. The report shall be developed, in accordance with procedures established by the commissioner. The information shall be disseminated publicly, and shall be made available to local and state disaster organizations, and to the commissioner for distribution to insurers. These findings and information shall not be binding on any insured as to coverage. (Added by Stats. 1998, Ch. 510, Sec. 1. Effective September 15, 1998.)
  61. 1602.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Agent for Service of Process [1600 - 1605] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    Notice, proof of loss, summons, or other process may be served on the insurer’s agent in an action or other legal proceeding against the insurer.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Agent for Service of Process [1600 - 1605] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1602. Any notice provided by law or by a policy, and any proof of loss, summons or other process may be served on such agent in any action or other legal proceeding against the insurer, and such service gives jurisdiction over the person of such insurer. (Enacted by Stats. 1935, Ch. 145.)
  62. 16020.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 3. Adjuster Identification [16020 - 16022] ( Article 3 added by Stats. 1998, Ch. 510, Sec. 1. )

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    The commissioner must establish a method for identifying representatives of insurers.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 3. Adjuster Identification [16020 - 16022] ( Article 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## 16020. The commissioner, in consultation with the Office of Emergency Services and other emergency service agencies, shall establish a method for identification of representatives of insurers. (Amended by Stats. 2013, Ch. 352, Sec. 398. (AB 1317) Effective September 26, 2013. Operative July 1, 2013, by Sec. 543 of Ch. 352.)
  63. 16021.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 3. Adjuster Identification [16020 - 16022] ( Article 3 added by Stats. 1998, Ch. 510, Sec. 1. )

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    The commissioner must issue identification badges to insurers, and insurers must distribute them to appropriate representatives.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 3. Adjuster Identification [16020 - 16022] ( Article 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## 16021. (a) In accordance with the methods established under Section 16020, the commissioner shall issue identification badges to each insurer insuring property in the state. The insurer shall be responsible for the distribution of the identification badges to appropriate insurer representatives. The identification badges shall permit access to disaster areas as soon as determined safe and practical by the incident commander. (b) The purpose of the identification badges is to enable the incident commander and state and local law enforcement officials to identify the representatives of insurers for purposes of access to disaster areas, and the badges shall not be used as identification for other purposes. The badges shall include in bold lettering larger than the other identifying information a statement that the bearer is not a state employee or public official, and does not possess any governmental authority. (Added by Stats. 1998, Ch. 510, Sec. 1. Effective September 15, 1998.)
  64. 16022.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 3. Adjuster Identification [16020 - 16022] ( Article 3 added by Stats. 1998, Ch. 510, Sec. 1. )

    Verify source ↗

    The commissioner must distribute identification badges to insurance adjusters, and insurers must keep a list of adjusters assigned to work in a disaster area.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 3. Adjuster Identification [16020 - 16022] ( Article 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## 16022. The commissioner shall distribute identification badges to insurance adjusters for the purpose of identifying persons who should be given access to disaster areas. Every insurer shall maintain a list of adjusters that have been assigned to work in the disaster area. (Added by Stats. 1998, Ch. 510, Sec. 1. Effective September 15, 1998.)
  65. 1603.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Agent for Service of Process [1600 - 1605] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    A person appointed under Section 1600 is treated as the insurer’s general agent and, for service of process, as the principal agent in this state.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Agent for Service of Process [1600 - 1605] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1603. The person appointed and designated pursuant to Section 1600 shall be deemed in law a general agent, and shall for service of process be the principal agent of the insurer in this state. (Amended by Stats. 1999, Ch. 808, Sec. 2. Effective January 1, 2000.)
  66. 16030.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 4. Coordination of Emergency Operations [16030 - 16032] ( Article 4 added by Stats. 1998, Ch. 510, Sec. 1. )

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    The commissioner must create coordination procedures and assign a representative to regional emergency operations centers; the representative and all insurance disaster assessment team members must complete the required emergency management training.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 4. Coordination of Emergency Operations [16030 - 16032] ( Article 4 added by Stats. 1998, Ch. 510, Sec. 1. ) ## 16030. (a) The commissioner, in cooperation with insurers, the Office of Emergency Services, and other emergency service agencies, shall establish procedures for the coordination of efforts between insurers and their representatives and those of emergency response agencies. (b) The commissioner shall assign a representative of the commissioner to work within the state’s regional emergency operations centers. The representative shall complete the appropriate Standardized Emergency Management Systems training. (c) All insurance disaster assessment team members shall complete the appropriate Standardized Emergency Management Systems training. (Amended by Stats. 2013, Ch. 352, Sec. 399. (AB 1317) Effective September 26, 2013. Operative July 1, 2013, by Sec. 543 of Ch. 352.)
  67. 16032.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 4. Coordination of Emergency Operations [16030 - 16032] ( Article 4 added by Stats. 1998, Ch. 510, Sec. 1. )

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    Certain insurer-hired fire-protection or firefighting resources must report immediately to the incident commander or designee when they arrive at a fire, and must follow all directions, including evacuation orders.

    ## Insurance Code - INS ## DIVISION 5. INSURANCE ADJUSTERS [14000 - 16032] ( Division 5 added by Stats. 1980, Ch. 1190, Sec. 11. ) ## CHAPTER 3. Emergency Disaster Assessment [16000 - 16032] ( Chapter 3 added by Stats. 1998, Ch. 510, Sec. 1. ) ## ARTICLE 4. Coordination of Emergency Operations [16030 - 16032] ( Article 4 added by Stats. 1998, Ch. 510, Sec. 1. ) ## 16032. Any privately owned or operated resources hired by an insurer for the purpose of protecting structures endangered by fire or performing firefighting duties shall report to the incident commander or his or her designee immediately upon arriving at the site of a fire. Those resources must obey all directions, including evacuation orders, given by the incident commander or his or her designee. (Added by Stats. 2009, Ch. 517, Sec. 1. (AB 1214) Effective January 1, 2010.)
  68. 1604.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Agent for Service of Process [1600 - 1605] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    Foreign insurers must file a commissioner-approved agreement about service of process as a condition of admission.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Agent for Service of Process [1600 - 1605] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1604. Every foreign insurer, as a further condition precedent to admission and in consideration thereof, shall file with the commissioner an agreement or stipulation, executed by the proper authorities of such insurer, in form and substance as follows: “The (giving name of insurer) does hereby stipulate and agree, in consideration of the permission granted by the State of California to it to transact insurance business in this State, that if at any time it leaves this State, ceases to transact business in this State or is without an agent for service of process in this State, then in any case where such agent could be served, service may be made upon the Insurance Commissioner, and such service upon the commissioner shall have the same force and effect as if made upon the insurer.” When a foreign insurer, prior to the date this code takes effect, has filed with the commissioner an agreement for service upon him pursuant to the provisions of section 616 of the Political Code as then in effect, such filing is a compliance with this section while such agreement remains in effect. (Enacted by Stats. 1935, Ch. 145.)
  69. 1605.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Agent for Service of Process [1600 - 1605] ( Article 3 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    Service may be made on the commissioner if the article’s agreement or stipulation conditions are met and the service follows Article 1’s procedure.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Agent for Service of Process [1600 - 1605] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1605. Service may be made upon the commissioner under the circumstances described in the agreement or stipulation provided for by this article and in the manner provided in Article 1 (commencing with Section 12919) of Chapter 2 of Division 3. (Amended by Stats. 1970, Ch. 949.)
  70. 1610.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Actions Against Nonadmitted Insurers [1610 - 1620] ( Article 4 added by Stats. 1949, Ch. 495. )

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    Certain acts by a nonadmitted foreign or alien insurer in California can count as appointing the insurance commissioner to receive legal process for lawsuits about those insurance contracts.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Actions Against Nonadmitted Insurers [1610 - 1620] ( Article 4 added by Stats. 1949, Ch. 495. ) ## 1610. Any of the acts described in Section 1611, when effected in this State, by mail or otherwise, by a foreign or alien insurer which is nonadmitted at the time of the solicitation, issuance or delivery by it of contracts of insurance to residents of, or to corporations authorized to do business in, this State, is equivalent to and shall constitute an appointment by such insurer of the commissioner and his successor or successors in office to be its true and lawful attorney, upon whom may be served all lawful process in any action, suit, or proceeding instituted by or on behalf of an insured or beneficiary arising out of any such contracts of insurance, and any such act shall be signification of its agreement that such service of process is of the same legal force and validity as personal service of process in this State upon such insurer. (Added by Stats. 1949, Ch. 495.)
  71. 1611.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Actions Against Nonadmitted Insurers [1610 - 1620] ( Article 4 added by Stats. 1949, Ch. 495. )

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    This section lists the acts treated as the acts referred to in Section 1610.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Actions Against Nonadmitted Insurers [1610 - 1620] ( Article 4 added by Stats. 1949, Ch. 495. ) ## 1611. The acts referred to in Section 1610 are: (1) The issuance or delivery to residents of, or to corporations authorized to do business in, this State of contracts of insurance insuring (a) the lives or persons of residents of this State physically present herein at the time of such issuance or delivery or (b) property or operations located in this State. (2) The solicitation of applications for such contracts. (3) The collection of premiums, membership fees, assessments or other considerations for such contracts. (4) Any other transaction of business arising out of such contracts. (Added by Stats. 1949, Ch. 495.)
  72. 1612.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Actions Against Nonadmitted Insurers [1610 - 1620] ( Article 4 added by Stats. 1949, Ch. 495. )

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    Service of process may be made under the procedure in Article 1 of Chapter 2 of Division 3.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Actions Against Nonadmitted Insurers [1610 - 1620] ( Article 4 added by Stats. 1949, Ch. 495. ) ## 1612. Such service of process may be made as provided in Article 1 (commencing with Section 12919) of Chapter 2 of Division 3. (Amended by Stats. 1970, Ch. 949.)
  73. 1616.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Actions Against Nonadmitted Insurers [1610 - 1620] ( Article 4 added by Stats. 1949, Ch. 495. )

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    A nonadmitted foreign or alien insurer must get a certificate of authority or post a court-fixed bond before filing a pleading in a case against it.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Actions Against Nonadmitted Insurers [1610 - 1620] ( Article 4 added by Stats. 1949, Ch. 495. ) ## 1616. Before any nonadmitted foreign or alien insurer shall file or cause to be filed any pleading in any action, suit or proceeding instituted against it, the insurer shall either (1) procure a certificate of authority to transact insurance in this state; or (2) give a bond in the action, suit or proceeding in an amount to be fixed by the court sufficient to secure the payment of any final judgment which may be rendered in the action, suit, or proceeding. (Amended by Stats. 1982, Ch. 517, Sec. 283.)
  74. 1617.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Actions Against Nonadmitted Insurers [1610 - 1620] ( Article 4 added by Stats. 1949, Ch. 495. )

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    The court may order a postponement, in its discretion, when service of process was made under Section 1612.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Actions Against Nonadmitted Insurers [1610 - 1620] ( Article 4 added by Stats. 1949, Ch. 495. ) ## 1617. The court in any action, suit, or proceeding, in which service of process is effected in the manner provided in Section 1612 may, in its discretion, order such postponement as may be necessary to afford the defendant reasonable opportunity to comply with the provisions of Section 1616 and to defend such action. (Added by Stats. 1949, Ch. 495.)
  75. 1618.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Actions Against Nonadmitted Insurers [1610 - 1620] ( Article 4 added by Stats. 1949, Ch. 495. )

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    A nonadmitted foreign or alien insurer may still file a motion to quash a writ or set aside service, if it follows Section 1612 and relies on the ground that it did not do the acts described in Section 1611.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Actions Against Nonadmitted Insurers [1610 - 1620] ( Article 4 added by Stats. 1949, Ch. 495. ) ## 1618. Nothing in Section 1616 is to be construed to prevent a nonadmitted foreign or alien insurer from filing a motion to quash a writ or to set aside service thereof made in the manner provided in Section 1612 on the ground that such insurer has not done any of the acts described in Section 1611. (Added by Stats. 1949, Ch. 495.)
  76. 1619.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Actions Against Nonadmitted Insurers [1610 - 1620] ( Article 4 added by Stats. 1949, Ch. 495. )

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    In certain actions against a nonadmitted foreign or alien insurer, the court may award the plaintiff a reasonable attorney fee and add it to the judgment if the insurer did not pay within 30 days after demand and the refusal was vexatious and without reasonable cause.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Actions Against Nonadmitted Insurers [1610 - 1620] ( Article 4 added by Stats. 1949, Ch. 495. ) ## 1619. In any action against a nonadmitted foreign or alien insurer upon a contract of insurance issued or delivered in this State to a resident thereof or to a corporation authorized to do business therein, if the insurer has failed for 30 days after demand prior to the commencement of the action to make payment in accordance with the terms of the contract, and it appears to the court that such refusal was vexatious and without reasonable cause, the court may allow to the plaintiff a reasonable attorney fee and include such fee in any judgment that may be rendered in such action. Such fee shall not exceed 121/2 percent of the amount which the court or jury finds the plaintiff is entitled to recover against the insurer, but in no event shall such fee be less than twenty-five dollars ($25). Failure of an insurer to defend any such action shall be deemed prima facie evidence that its failure to make payment was vexatious and without reasonable cause. (Added by Stats. 1949, Ch. 495.)
  77. 1620.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Actions Against Nonadmitted Insurers [1610 - 1620] ( Article 4 added by Stats. 1949, Ch. 495. )

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    In certain cases against unauthorized foreign or alien insurers, the court may require a bond, but some listed conditions exempt the insurer from that requirement.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Actions Against Nonadmitted Insurers [1610 - 1620] ( Article 4 added by Stats. 1949, Ch. 495. ) ## 1620. (a) The provisions of the preceding sections of this article shall not apply to any action, suit, or proceeding against any unauthorized foreign or alien insurer arising out of any contract of insurance effected in accordance with Section 1760, 1760.5, 1763, or 1763.1, or, if the contract is governed by and complies with the laws of the state in which the contract was entered. The provisions of Section 1610 shall apply to any action, suit, or proceeding under this section unless the insurer has designated an agent in California for service of process or the contract contains a provision designating a resident of this state or any firm of which one member is a resident of this state to be its true and lawful attorney upon whom may be served all lawful process in any action, suit, or proceeding. (b) In any action, suit, or proceeding arising out of any such contract of insurance, the court may require the insurer to file a bond, in an amount sufficient to secure the payment of any final judgment which may be rendered unless one or more of the following are applicable: (1) The insurer makes a showing satisfactory to the court that it maintains in a state of the United States funds or securities in trust or otherwise, sufficient and available to satisfy any such final judgment and that it will pay the judgment without requiring suit to be brought thereon in the state where the securities or funds are located. (2) At the time the insurer files any pleading in any action, suit, or proceeding instituted against it, the insurer is an eligible surplus line insurer in accordance with Section 1765.1, unless by facts presented to the court there is created a reasonable doubt as to the present ability of the insurer to satisfy any final judgment in the action, suit, or proceeding. Upon request of a party or the court, the unauthorized foreign or alien insurer or reinsurer shall provide the court and the party requesting the bond with copies of documents relating to the financial condition of the insurer, including, but not limited to, copies of the insurer’s most recent annual statement and audited financial report and, where applicable, a certified copy of the trust agreement required by subdivision (b) of Section 1765.2 and a verified copy of the most recent quarterly statement or list of assets in the trust. (3) With respect to a contract of reinsurance issued in accordance with Section 1760.5, the reinsurer has complied with the provisions of this code necessary to permit the ceding insurer to take credit on its financial statement for the reinsurance as set forth in Section 922.4 or 922.5. (Amended by Stats. 2011, Ch. 83, Sec. 7. (AB 315) Effective July 15, 2011. Operative July 21, 2011, by Sec. 34 of Stats. 2011, Ch. 83.)
  78. 1620.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4.5. Unauthorized Insurers False Advertising Process Act [1620.1 - 1620.7] ( Article 4.5 added by Stats. 1961, Ch. 297. )

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    This article applies to certain unauthorized insurers that send false advertising into the state to induce residents to buy insurance, and it places them under the commissioner’s and state courts’ jurisdiction.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4.5. Unauthorized Insurers False Advertising Process Act [1620.1 - 1620.7] ( Article 4.5 added by Stats. 1961, Ch. 297. ) ## 1620.1. (a) The purpose of this article is to subject to the jurisdiction of the commissioner and to the jurisdiction of the courts of this State, insurers not authorized to transact business in this State which place in or send into this State any false advertising designed to induce residents of this State to purchase insurance from insurers not authorized to transact business in this State. The Legislature declares it is in the interest of the citizens of this State who purchase insurance from insurers which solicit insurance business in this State in the manner set forth in the preceding sentence that such insurers be subject to the provisions of this article. In furtherance of such state interest, the Legislature in this article provides a method of substituted service of process upon such insurers and declares that in so doing, it exercises its power to protect its residents and also exercises powers and privileges available to the State by virtue of Public Law 15, 79th Congress of the United States, Chapter 20, 1st Session, S. 340, which declares that the business of insurance and every person engaged therein shall be subject to the laws of the several states; the authority provided in such sections to be in addition to any existing powers of this State. (b) The provisions of this article shall be liberally construed. (Added by Stats. 1961, Ch. 297.)
  79. 1620.2.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4.5. Unauthorized Insurers False Advertising Process Act [1620.1 - 1620.7] ( Article 4.5 added by Stats. 1961, Ch. 297. )

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    This section defines “Unfair Trade Practices Act” and “Residents” for use in the article.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4.5. Unauthorized Insurers False Advertising Process Act [1620.1 - 1620.7] ( Article 4.5 added by Stats. 1961, Ch. 297. ) ## 1620.2. As used in this article (commencing with Section 1620.1): (a) “Unfair Trade Practices Act” means Article 6.5 (commencing with Section 790) of Chapter 1 of Part 2 of Division 1. (b) “Residents” means any person defined in Section 19 who is resident within the meaning of Section 30. (Added by Stats. 1961, Ch. 297.)
  80. 1620.3.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4.5. Unauthorized Insurers False Advertising Process Act [1620.1 - 1620.7] ( Article 4.5 added by Stats. 1961, Ch. 297. )

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    Unauthorized foreign or alien insurers may not send misleading advertising or statements to residents of this state, and the commissioner must give notice by registered mail if unlawful advertising is suspected.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4.5. Unauthorized Insurers False Advertising Process Act [1620.1 - 1620.7] ( Article 4.5 added by Stats. 1961, Ch. 297. ) ## 1620.3. No unauthorized foreign or alien insurer shall make, issue, circulate or cause to be made, issued or circulated to residents of this State any estimate, illustration, circular, pamphlet, or letter, or cause to be made in any newspaper, magazine or other publication or over any radio or television station, any announcement or statement to such residents misrepresenting its financial condition or the terms of any contracts issued or to be issued or the benefits or advantages promised thereby, or the dividends or share of the surplus to be received thereon in violation of the Unfair Trade Practice Act, and whenever the commissioner shall have reason to believe that any such insurer is engaging in unlawful advertising, it shall be his duty to give notice of such fact by registered mail to the insurer and to the insurance supervisory official of the domiciliary state of the insurer. For the purpose of this section, the domiciliary state of an alien insurer shall be deemed to be the state of entry or the state of the principal office in the United States. (Added by Stats. 1961, Ch. 297.)
  81. 1620.4.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4.5. Unauthorized Insurers False Advertising Process Act [1620.1 - 1620.7] ( Article 4.5 added by Stats. 1961, Ch. 297. )

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    After notice, if the insurer still makes false misrepresentations and related conditions are met, the commissioner must take action against the insurer under the Unfair Trade Practice Act.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4.5. Unauthorized Insurers False Advertising Process Act [1620.1 - 1620.7] ( Article 4.5 added by Stats. 1961, Ch. 297. ) ## 1620.4. If after 30 days following the giving of the notice mentioned in Section 1620.3 the insurer has failed to cease making, issuing, or circulating such false misrepresentations or causing the same to be made, issued or circulated in this State, and if the commissioner has reason to believe that a proceeding by him in respect to such matters would be to the interest of the public, and that the insurer is issuing or delivering contracts of insurance to residents of this State or collecting premiums on such contracts or doing any of the acts enumerated in Section 1620.5, he shall take action against the insurer under the Unfair Trade Practice Act. (Added by Stats. 1961, Ch. 297.)
  82. 1620.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4.5. Unauthorized Insurers False Advertising Process Act [1620.1 - 1620.7] ( Article 4.5 added by Stats. 1961, Ch. 297. )

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    This section says certain acts by an unauthorized foreign or alien insurer count as appointing the commissioner to receive service of charges, notices, and process, and it sets how service must be made.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4.5. Unauthorized Insurers False Advertising Process Act [1620.1 - 1620.7] ( Article 4.5 added by Stats. 1961, Ch. 297. ) ## 1620.5. (a) Any of the following acts in this State, effected by mail or otherwise, by any unauthorized foreign or alien insurer: (1) the issuance or delivery of contracts of insurance to residents of this State, (2) the solicitation of applications for such contracts, (3) the collection of premiums, membership fees, assessments or other considerations for such contracts, or (4) any other transaction of insurance business, is equivalent to and shall constitute an appointment by the insurer of the commissioner and his successor or successors in office, to be its true and lawful attorney, upon whom may be served all statements of charges, notices and lawful process in any proceeding instituted in respect to the misrepresentations set forth in Section 1620.3 under the provisions of the Unfair Trade Practice Act, or in any action, suit or proceeding for the recovery of any penalty therein provided, and any such act shall be signification of its agreement that the service of statement of charges, notices or process is of the same legal force and validity as personal service of the statement of charges, notices or process in this State, upon such insurer. (b) Service of a statement of charges and notices under the Unfair Trade Practice Act shall be made by any deputy or employee of the Department of Insurance delivering to and leaving with the commissioner or some person in apparent charge of his office, two copies thereof. Service of process issued by any court in any action, suit or proceeding to collect any penalty under the act provided, shall be made by delivering and leaving with the commissioner, or some person in apparent charge of his office, two copies thereof. The commissioner shall forthwith cause to be mailed by registered mail one of the copies of the statement of charges, notices or process to the defendant at its last known principal place of business, and shall keep a record of all statements of charges, notices and process so served. Such service of statement of charges, notices or process shall be sufficient provided they shall have been so mailed and the defendant’s receipt or receipt issued by the post office with which the letter is registered, showing the name of the sender of the letter and the name and address of the person to whom the letter is addressed, and the affidavit of the person mailing the letter showing a compliance herewith are filed with the commissioner in the case of any statement of charges or notices, or with the clerk of the court in which the action is pending in the case of any process, on or before the date the defendant is required to appear or within such further time as may be allowed. (c) Service of statement of charges, notices and process in any such proceeding, action or suit shall in addition to the manner provided in subsection (b) of this section be valid if served upon any person within this State who on behalf of such insurer is (1) Soliciting insurance, or (2) Making, issuing or delivering any contract of insurance, or (3) Collecting or receiving in this State any premium for insurance; and a copy of such statement of charges, notices or process is sent within 10 days thereafter by registered mail by or on behalf of the commissioner to the defendant at the last known principal place of business of the defendant, and the defendant’s receipt, or the receipt issued by the post office with which the letter is registered, showing the name of the sender of the letter, the name and address of the person to whom the letter is addressed, and the affidavit of the person mailing the same showing a compliance herewith, are filed with the commissioner in the case of any statement of charges or notices, or with the clerk of the court in which such action is pending in the case of any process, on or before the date the defendant is required to appear or within such further time as the court may allow. (d) No cease or desist order or judgment by default under this section shall be entered until the expiration of 30 days from the date of the filing of the affidavit of compliance. (e) Service of process and notice under the provisions of this article (commencing with Section 1620.1) shall be in addition to all other methods of service provided by law, and nothing in these sections shall limit or prohibit the right to serve any statement of charges, notices or process upon any insurer in any other manner now or hereafter permitted by law. (Added by Stats. 1961, Ch. 297.)
  83. 1620.6.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4.5. Unauthorized Insurers False Advertising Process Act [1620.1 - 1620.7] ( Article 4.5 added by Stats. 1961, Ch. 297. )

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    If part of this article is invalid, the rest still applies if it can function without the invalid part.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4.5. Unauthorized Insurers False Advertising Process Act [1620.1 - 1620.7] ( Article 4.5 added by Stats. 1961, Ch. 297. ) ## 1620.6. If any provision of this article (commencing with Section 1620.1) or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or application of this article which can be given effect without the invalid provision or application, and to this end the provisions of this article are declared to be severable. (Added by Stats. 1961, Ch. 297.)
  84. 1620.7.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4.5. Unauthorized Insurers False Advertising Process Act [1620.1 - 1620.7] ( Article 4.5 added by Stats. 1961, Ch. 297. )

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    This section says Article 4.5 may be cited as the Unauthorized Insurers False Advertising Process Act.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. Foreign Insurers [1561 - 1620.7] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4.5. Unauthorized Insurers False Advertising Process Act [1620.1 - 1620.7] ( Article 4.5 added by Stats. 1961, Ch. 297. ) ## 1620.7. This article (commencing with Section 1620.1) may be cited as the Unauthorized Insurers False Advertising Process Act. (Amended by Stats. 1963, Ch. 313.)
  85. 1621.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 1. Definitions [1621 - 1624] ( Article 1 added by Stats. 1959, Ch. 4. )

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    This section defines “insurance agent” as a person who transacts non-life insurance for an admitted insurance company, and it excludes life agents.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 1. Definitions [1621 - 1624] ( Article 1 added by Stats. 1959, Ch. 4. ) ## 1621. An insurance agent is a person who transacts insurance, other than life, disability, or health insurance, on behalf of an admitted insurance company. The term “insurance agent” as used in this chapter does not include a life agent as defined in this article. (Amended by Stats. 2010, Ch. 400, Sec. 6. (AB 2782) Effective January 1, 2011.)
  86. 1622.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 1. Definitions [1621 - 1624] ( Article 1 added by Stats. 1959, Ch. 4. )

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    This section defines a life and accident and health or sickness licensee as a person authorized to act for a life insurer or disability insurer to sell certain types of insurance.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 1. Definitions [1621 - 1624] ( Article 1 added by Stats. 1959, Ch. 4. ) ## 1622. (a) A life and accident and health or sickness licensee is a person authorized to act on behalf of a life insurer or a disability insurer to transact any of the following: (1) Life insurance. (2) Accident and health insurance. (3) Life and accident and health or sickness insurance. (b) Licenses to act as a life and accident and health or sickness agent under this chapter shall be of the types set forth in Section 1626. (Amended by Stats. 2020, Ch. 184, Sec. 7. (SB 1255) Effective January 1, 2021.)
  87. 1623.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 1. Definitions [1621 - 1624] ( Article 1 added by Stats. 1959, Ch. 4. )

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    This section defines when a person is an insurance broker and describes when broker-status and disclosure presumptions apply.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 1. Definitions [1621 - 1624] ( Article 1 added by Stats. 1959, Ch. 4. ) ## 1623. (a) An insurance broker is a person who, for compensation and on behalf of another person, transacts insurance other than life, disability, or health insurance with, but not on behalf of, an admitted insurer. It shall be presumed that the person is acting as an insurance broker if the person is licensed to act as an insurance broker, maintains the bond required by this chapter, and discloses, in a written agreement signed by the consumer, all of the following: (1) That the person is transacting insurance on behalf of the consumer. (2) A description of the basic services the person will perform as a broker. (3) The amount of all broker fees being charged by the person. (4) If applicable, the fact that the person may be entitled to receive compensation from the insurer, directly or indirectly, for the consumer’s purchase of insurance as a consequence of the transaction. (b) If a transaction involves both a retail broker and a wholesale intermediary broker, the wholesale intermediary broker shall be deemed to have satisfied its disclosure obligations under this section if it provides written disclosure to the retail broker of the criteria set forth in paragraphs (2), (3), and (4) of subdivision (a). (c) The presumption of broker status is rebutted as to any transaction in the admitted market in which any of the following is present: (1) The licensee is appointed, pursuant to Section 1704, as an agent of the insurer for the particular class or type of insurance being transacted. (2) The licensee has a written agreement with an insurer containing express terms that authorize the licensee to obligate the insurer without first obtaining notification from the insurer that the insurer has accepted, conditionally or unconditionally, the submitted risk. (3) The licensee is authorized, pursuant to a written agreement with an insurer, to appoint other licensees as agents of the insurer, pursuant to Section 1704. (4) The licensee is authorized, pursuant to a written agreement with an insurer, to pay claims on behalf of the insurer. (d) In all other cases, the presumption of broker status is rebutted based on the totality of the circumstances indicating that the broker-agent is acting on behalf of the insurer. (e) For purposes of this section, “totality of the circumstances” means evidence indicating whether a broker-agent was acting on behalf of the insurer or was acting on behalf of a third person. In determining the totality of circumstances, all relevant facts and circumstances shall be reviewed and the review is not limited to any particular fact or factors and this section does not require that any particular circumstance receive greater or lesser weight. (Amended by Stats. 2010, Ch. 400, Sec. 7. (AB 2782) Effective January 1, 2011.)
  88. 1624.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 1. Definitions [1621 - 1624] ( Article 1 added by Stats. 1959, Ch. 4. )

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    This section defines “insurance solicitor” as a natural person employed to help a property and casualty broker-agent who is acting as an insurance agent or broker in transacting non-life, non-disability, and non-health insurance.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 1. Definitions [1621 - 1624] ( Article 1 added by Stats. 1959, Ch. 4. ) ## 1624. “Insurance solicitor” means a natural person employed to aid a property and casualty broker-agent acting as an insurance agent or insurance broker in transacting insurance other than life, disability, or health. (Amended by Stats. 2013, Ch. 321, Sec. 13. (AB 1391) Effective January 1, 2014.)
  89. 1625.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. )

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    This section defines property and casualty licensees and says those licenses entitle the holder to transact certain kinds of insurance coverage.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. ) ## 1625. (a) A property licensee or a casualty licensee is a person authorized to act as an insurance agent, broker, or solicitor, and a property broker-agent license or a casualty broker-agent license is a license so to act. (b) Licenses to act as a property broker-agent under this chapter shall entitle the licensee to transact insurance coverage on the direct or consequential loss or damage to property of every kind. (c) Licenses to act as a casualty broker-agent shall entitle the licensee to transact insurance coverage against legal liability, including that for death, injury, disability, or damage to real or personal property. (Amended by Stats. 2011, Ch. 411, Sec. 8. (AB 1416) Effective January 1, 2012.)
  90. 1625.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. )

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    This section defines a personal lines licensee and a personal lines broker-agent license, and sets application, renewal, examination, and timing rules for personal lines licenses.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. ) ## 1625.5. (a) A personal lines licensee is a person authorized to transact automobile insurance, as defined in Section 660, including insurance for recreational vehicles used for noncommercial purposes, personal watercraft insurance, residential property insurance, as defined in Section 10087, including earthquake and flood insurance, inland marine insurance covering personal property, and umbrella or excess liability insurance providing coverage when written over one or more underlying automobile or residential property insurance policies, and a personal lines broker-agent license is a license to so act. (b) A license under this section shall be applied for and renewed, following successful completion of a qualifying examination on this code, ethics, and products sold under the license, in the same manner as is provided in this chapter for a license to act as a property broker-agent or a casualty broker-agent, except as provided in subdivision (c) or where provided otherwise. (c) A person licensed as a personal lines agent who makes an application to the commissioner to become a property broker-agent or a casualty broker-agent pursuant to Section 1625 shall do all of the following: (1) Submit an application on a form provided by the commissioner. (2) Complete prelicensing education as specified in Section 1749. (3) Take and pass a qualifying examination pursuant to Section 1676. (d) Notwithstanding any other provision of law, for a personal lines license: (1) “License term” for a personal lines license means all of that two-year period beginning as described in either subdivision (a) or (b) of Section 1629, as applicable, and ending the second succeeding year on the last calendar day of the month in which the initial license was issued. (2) “License year” for a personal lines license shall be determined for each entity as follows: (A) Upon initial licensing, the license year starts on the date the license is issued. (B) Subsequently, each license year starts the first day of the month following the month in which the initial license was issued. (C) A license year ends the following calendar year on the last calendar day of the month in which the initial license was issued. (Amended by Stats. 2011, Ch. 411, Sec. 9. (AB 1416) Effective January 1, 2012.)
  91. 1625.55.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. )

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    This section defines a limited lines automobile insurance agent and requires related license applications, renewals, fees, and examinations to be handled in the prescribed way.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. ) ## 1625.55. (a) A limited lines automobile insurance agent is a person authorized to transact automobile insurance, as defined in Section 660. A limited lines automobile insurance agent license is a license to so act. (b) A license under this section shall be applied for and renewed, following successful completion of a qualifying examination on this code, ethics, and products sold under the license, in the same manner as provided in this chapter for a license to act as a property broker-agent or a casualty broker-agent. (c) The commissioner shall require in advance a fee for filing any applications, renewals thereof, or changes in outstanding licenses, or for the filing of other required documents at an amount designated in this chapter for a personal lines licensee, and for filing any notice of appointment or notice of termination at an amount specified in Section 1751.3. (d) A person licensed as a limited lines automobile insurance agent who makes an application to the commissioner to become a property broker-agent or a casualty broker-agent pursuant to Section 1625 or a personal lines agent pursuant to Section 1625.5 shall do all of the following: (1) Submit an application on a form provided by the commissioner. (2) Take and pass a qualifying examination pursuant to Section 1676. (Amended by Stats. 2025, Ch. 566, Sec. 2. (AB 943) Effective January 1, 2026.)
  92. 1625.56.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. )

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    This section defines when the license year starts and ends for a limited lines automobile insurance agent.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. ) ## 1625.56. “License year” for a limited lines automobile insurance agent shall be determined as follows: (a) Upon initial licensing, the license year starts on the date the license is issued. (b) Subsequently, each license year starts the first day of the month following the month in which the initial license was issued. (c) A license year ends the following calendar year on the last calendar day of the month in which the initial license was issued. (Added by Stats. 2007, Ch. 271, Sec. 2. Effective January 1, 2008.)
  93. 1625.57.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. )

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    This section defines “license term” for a limited lines automobile insurance agent as a two-year period tied to when the initial license was issued.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. ) ## 1625.57. “License term” for a limited lines automobile insurance agent means all of that two-year period beginning as described in subdivision (a) or (b) of Section 1625.56, as applicable, and ending the second succeeding year on the last calendar day of the month in which the initial license was issued. (Added by Stats. 2007, Ch. 271, Sec. 3. Effective January 1, 2008.)
  94. 1626.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. )

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    This section defines life and accident and health or sickness licensees and describes what kinds of insurance coverage their licenses let them transact.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. ) ## 1626. (a) A life and accident and health or sickness licensee is a person authorized to act as a life and accident and health or sickness agent. Licenses to act as a life and accident and health or sickness agent under this chapter shall be of the following types: (1) Life, which license shall entitle the licensee to transact insurance coverage on human lives, including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income. (2) Accident and health or sickness, which license shall entitle the licensee to transact insurance coverage for sickness, bodily injury, or accidental death and may include benefits for disability income. (b) An accident and health or sickness agent licensee is authorized to transact 24-hour care coverage, as defined in Section 1749.02, pursuant to subdivision (d) of Section 1749.33. (Amended by Stats. 2025, Ch. 566, Sec. 3. (AB 943) Effective January 1, 2026.)
  95. 1627.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. )

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    This section defines a license and who counts as its holder, including certain organization-issued licenses.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. ) ## 1627. A license is a permit to act in the capacity specified therein. A person licensed is the holder of the license. In case of a license to act as a life agent, property broker-agent, or casualty broker-agent issued to an organization, the organization is the holder thereof, but the natural person or persons named thereon are thereby permitted to exercise the agency or brokerage powers of the organization in accordance with and subject to the provisions of this chapter and other applicable law. As used in this chapter, the term “license” includes a certificate of convenience and a permanent license, and the term “persons who are licensed” includes the holders of any such certificate or the license, but these definitions and the use of those terms in this chapter shall not confer upon a certificate of convenience or any holder thereof any property right in or to the certificate, the certificate being and remaining only a temporary permit, issued as a matter of convenience, allowing the transaction of insurance without a permanent license, but within the limits, and subject to the conditions of the certificate of convenience issued and the laws applicable thereto. (Amended by Stats. 2011, Ch. 411, Sec. 11. (AB 1416) Effective January 1, 2012.)
  96. 1628.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. )

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    An “organization” is any legal entity other than a natural person. If a natural person is named on an organization license, that person must meet the qualifications for the license type the organization seeks.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. ) ## 1628. As used in this chapter, an “organization” means any legal entity other than a natural person. If reference is made to a natural person named on an organization license, the reference shall be to a person who is named to exercise the power and perform the duties under an organization license, pursuant to Section 1656. The natural person named on the organizational license shall meet the qualifications required for the type of license sought by the organization. (Amended by Stats. 2017, Ch. 417, Sec. 11. (AB 1696) Effective January 1, 2018.)
  97. 1629.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. )

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    This section defines when a “license year” starts and ends for each entity.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. ) ## 1629. “License year” as used in this chapter shall be determined for each entity as follows: (a) Upon initial licensing, the license year starts on the date the license is issued. (b) Subsequently, each license year starts the first day of the month following the month in which the initial license was issued. (c) A license year ends the following calendar year on the last calendar day of the month in which the initial license was issued. (Repealed and added by Stats. 1985, Ch. 770, Sec. 8.5.)
  98. 1630.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. )

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    This section defines “license term” for this chapter as a two-year period tied to Section 1629 and the month the initial license was issued.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 2. Comprehensive Definitions [1625 - 1630] ( Article 2 added by Stats. 1959, Ch. 4. ) ## 1630. “License term” as used in this chapter means all of that two-year period beginning as described in subdivision (a) or (b) of Section 1629, as applicable, and ending the second succeeding year on the last calendar day of the month in which the initial license was issued. (Repealed and added by Stats. 1985, Ch. 770, Sec. 8.7.)
  99. 1631.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

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    A person may not sell, negotiate, or carry out insurance contracts, or act in covered capacities, unless exempt or holding a valid license from the commissioner.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1631. Unless exempt by the provisions of this article, a person shall not solicit, negotiate, or effect contracts of insurance, or act in any of the capacities defined in Article 1 (commencing with Section 1621) unless the person holds a valid license from the commissioner authorizing the person to act in that capacity. The issuance of a certificate of authority to an insurer does not exempt an insurer from complying with this article. (Amended by Stats. 2000, Ch. 321, Sec. 3. Effective January 1, 2001. Operative January 1, 2002, by Sec. 9 of Ch. 321.)
  100. 1631.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

    Verify source ↗

    This article does not affect the current operations of the Healthy Families Program or the Access for Infants and Mothers Program.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1631.5. Nothing in this article shall be deemed to affect the current operations of the Healthy Families Program (Part 6.2 (commencing with Section 12693) of Division 2) or the Access for Infants and Mothers Program (Part 6.3 (commencing with Section 12695) of Division 2). (Added by Stats. 2000, Ch. 321, Sec. 3.5. Effective January 1, 2001. Operative January 1, 2002, by Sec. 9 of Ch. 321.)
  101. 1632.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

    Verify source ↗

    A person otherwise eligible for a license may be authorized to act in one or more of the capacities listed in this chapter, unless this article prohibits it.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1632. Unless prohibited in this article, a person otherwise eligible for a license may be authorized to act in one or more of the capacities specified in this chapter. (Amended by Stats. 1990, Ch. 1420, Sec. 8. Operative January 1, 1992, by Sec. 77 of Ch. 1420.)
  102. 1633.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

    Verify source ↗

    A person may not transact insurance without a valid license.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1633. Any person who transacts insurance without a valid license so to act is guilty of a misdemeanor punishable by a fine not exceeding fifty thousand dollars ($50,000) or by imprisonment in a county jail for a period not exceeding one year, or by both that fine and imprisonment. (Amended by Stats. 2004, Ch. 279, Sec. 1. Effective January 1, 2005.)
  103. 1633.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

    Verify source ↗

    The chapter says its regulations are the only regulations governing insurance business conduct for persons licensed under it, even if local laws or ordinances say otherwise.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1633.5. It is hereby declared to be the intent of the Legislature in enacting this chapter that the regulations prescribed herein be the exclusive regulations relating to the conduct of insurance business by persons licensed to act in any of the capacities defined hereunder, any local regulations or ordinances notwithstanding. (Added by Stats. 1959, Ch. 749.)
  104. 1634.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

    Verify source ↗

    A person does not need a license under this chapter to work in the listed insurance-related capacities.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1634. No license is required under this chapter for a person to act in any of the following capacities: (a) As a full-time salaried employee of a title insurer, controlled escrow company or an underwritten title company. (b) As a salaried solicitor or agent of a mortgage insurer or mortgage guaranty insurer provided no part of the compensation of the person is on a commission basis. (c) As the attorney in fact of a reciprocal or interinsurance exchange. (d) As a life and disability insurance analyst. (e) As a surplus line broker or special lines surplus line broker. (f) As a bail agent, bail solicitor or bail permittee. (g) As an employee, not paid on a commission basis, of a home protection company, including, but not limited to, soliciting, negotiating, or effecting home protection contracts by the employee. (h) As an employee of a creditor who secures and forwards information for the purpose of obtaining group credit life, credit disability, or involuntary unemployment insurance, or for enrolling individuals in a group credit life, credit disability, or involuntary unemployment insurance plan or issuing certificates of insurance thereunder where no commission is paid to the employee for those services. (Amended by Stats. 2003, Ch. 439, Sec. 4. Effective January 1, 2004. Operative July 1, 2004, by Sec. 7 of Ch. 439.)
  105. 1635.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

    Verify source ↗

    A person does not need a license under this chapter to do the listed insurance-related activities if no commission is paid or allowed for them.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1635. A license is not required under the provisions of this chapter for a person to act in the following capacities or to engage in the following activities, providing a commission is not paid or allowed, directly or indirectly, by the insurer, creditor, retailer, or other person for acting in those capacities or engaging in those activities: (a) The business of examining, certifying, or abstracting titles to real property. (b) The solicitation for membership in a fraternal benefit society and other activities to the extent and as described in Sections 11013 and 11102 of this code. (c) As a salaried representative of a reciprocal or interinsurance exchange or of its attorney-in-fact. (d) Employment that does not include the solicitation, negotiation, or effecting of contracts of insurance and the signing of policies or other evidences of insurance. (e) As an officer of an insurer or a salaried traveling employee of the type commonly known as a special agent or as an agency supervisor, while performing duties and exercising functions that are commonly performed by a special agent or agency supervisor, if the person engaging in the activity does not do either of the following: (1) Effect insurance. (2) Solicit or negotiate insurance except as a part of and in connection with the business of a property broker-agent, casualty broker-agent, or life agent licensed under this chapter. (f) As an officer or salaried representative of a life insurer if the activities of the officer or salaried representative are limited to direct technical advice and assistance to a properly licensed person and the officer or salaried representative’s activities do not include effecting, soliciting, or negotiating insurance except as a part of and in connection with the business of a property broker-agent, casualty broker-agent, or life agent licensed under this chapter. (g) Employment by an insurer at its home or branch office that does not include the solicitation, negotiation, or effecting of contracts of insurance, and that may as part thereof include the signing of policies or other evidences of insurance. (h) The completion or delivery of a declaration or certificate of coverage under a running inland marine insurance contract evidencing coverage thereunder and including only those negotiations as are necessary to the completion or delivery if the person performing those acts or the person’s employer has an insurable interest in the risk covered by the certificate or declaration. (i) As an employee of a licensed property broker-agent or casualty broker-agent, whose employment is one or more of the following: (1) That of a regularly salaried administrative or clerical employee whose activities do not include the solicitation, negotiation, or effecting of contracts of insurance from the insuring public. (2) That of a salesperson who devotes substantially all of that salesperson’s activities to selling merchandise and whose solicitation of insurance is limited only to the quoting of a premium for insurance to be included in the purchase price covering the interest retained in the merchandise by the seller. (j) The solicitation, negotiation, or effectuation of home protection contracts by a person licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code in connection with the person’s licensed function authorized by Section 10131 or 10131.6 of the Business and Professions Code. The receipt of a payment permitted by Section 12760 shall not disqualify the recipient from the licensing exemption provided by this chapter. (k) Employees of an insurer whose duties are the inspection, processing, adjusting, investigation, settling of claims, conducting safety inspections, or accepting or rejecting business from licensed insurance agents or brokers. (l) Officers, directors, or employees of an insurer or producer whose executive, administrative, managerial, or clerical activities are only indirectly related to solicitation, negotiation, or effecting the sale of insurance, provided those persons do not have direct contact with consumers in a sales or service capacity except as otherwise provided by this section. (m) Employees whose activities are limited to making clerical changes in existing policies or providing indirect marketing and servicing support for the purpose of determining general interest in insurance products. (Amended by Stats. 2021, Ch. 133, Sec. 1. (SB 272) Effective July 23, 2021.)
  106. 1637.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

    Verify source ↗

    An organization may hold only the licenses needed to act in the listed capacities under this chapter.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1637. An organization may hold any license or licenses necessary to act in the following capacities under this chapter and no others: (a) A license to act as a life agent. (b) A license to act as an accident and health or sickness agent. (c) A license to act as a property broker-agent. (d) A license to act as a casualty broker-agent. (e) A license to act as a cargo shipper’s agent. (f) A license to act as a personal lines licensee. (g) A license to act as a credit insurance agent. (h) A license to act as a car rental agent. (i) A nonresident license to act as a limited lines licensee pursuant to subdivision (i) of Section 1639. (j) A license to act as a self-service storage agent. (k) A license to act as a limited lines automobile insurance agent. (Amended by Stats. 2020, Ch. 184, Sec. 9. (SB 1255) Effective January 1, 2021.)
  107. 1638.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

    Verify source ↗

    This section defines a nonresident license and says a licensed person may choose only one state as their resident state.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1638. (a) A nonresident license is a license issued to a person not a resident of this state. A person is a resident of this state if either of the following applies: (1) A person occupies a dwelling in this state and intends this state to be that person’s domicile. (2) A person maintains that person’s principal place of business in this state. (b) A person licensed under this chapter may designate only one state as that person’s resident state. (Amended by Stats. 2021, Ch. 133, Sec. 2. (SB 272) Effective July 23, 2021.)
  108. 1638.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

    Verify source ↗

    A nonresident person must be granted a production agency license if listed conditions are met, unless licensure is denied under Article 6.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1638.5. Unless denied licensure pursuant to Article 6 (commencing with Section 1666), a nonresident person shall receive a production agency license if that nonresident person meets the following requirements: (a) The person is currently licensed and in good standing in the state, territory of the United States, or province of Canada in which the person is licensed as a resident producer. (b) The person has submitted the proper request for licensure and has paid the fees required by Section 1750.5. (c) The person has submitted or transmitted to the Insurance Commissioner the application for licensure that the person submitted to the state, territory of the United States, or province of Canada in which the person is licensed as a resident, or submitted or transmitted to the commissioner, a completed National Association of Insurance Commissioners (NAIC) Uniform Nonresident Application. (d) The state, territory of the United States, or province of Canada in which the person holds a resident producer license awards nonresident producer licenses to residents of this state on the same basis. (Amended by Stats. 2021, Ch. 133, Sec. 3. (SB 272) Effective July 23, 2021.)
  109. 1639.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

    Verify source ↗

    This section allows certain license types to be issued to nonresidents if they already hold the relevant license or authority in their resident state, territory, or Canadian province.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1639. The following types of licenses under this chapter may be issued to nonresidents: (a) A property broker-agent or a casualty broker-agent if the nonresident is duly licensed to transact those lines of insurance described in Section 1625, under the laws of the state, territory of the United States, or province of Canada where the resident license is maintained. (b) A personal lines broker-agent if the nonresident is duly licensed to transact those lines of insurance described in Section 1625.5, under the laws of the state, territory of the United States, or province of Canada where the resident license is maintained. (c) A life agent or an accident and health or sickness agent if the nonresident possesses a resident license in another state, territory of the United States, or province of Canada to transact life insurance or disability insurance. (d) A nonresident may be granted authority to transact variable life and variable annuity contracts if the person has been granted that authority by the state where the resident license is maintained. To qualify for this authority, the nonresident is required to also be licensed as a life agent in the state where the resident license is maintained. (e) A surplus line broker and a special lines surplus broker if the nonresident holds that type of license in the state or territory of the United States where the resident license is maintained. (f) A credit insurance agent if the nonresident holds that type of license in the state, territory of the United States, or province of Canada where the resident license is maintained. (g) A car rental agent if the nonresident holds that type of license in the state, territory of the United States, or province of Canada where the resident license is maintained. (h) A cargo shipper’s agent if the nonresident holds that type of license in the state, territory of the United States, or province of Canada where the resident license is maintained. (i) A limited lines license if the nonresident holds that type of license in the state, territory of the United States, or province of Canada where the resident license is maintained. As used in this section, “limited lines license” means any authority granted by the resident state that restricts the authority of the license to less than the total authority granted by any of the types of licenses identified in this section. (j) A self-service storage agent if the nonresident holds that type of license in the state, territory of the United States, or province of Canada where the resident license is maintained. (Amended by Stats. 2020, Ch. 184, Sec. 10. (SB 1255) Effective January 1, 2021.)
  110. 1639.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

    Verify source ↗

    Nonresident producers must update their address and provide new-state certification within 30 days after a legal residence change; no fee or license application is required.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1639.1. (a) The class or classes of insurance which a nonresident person is licensed to transact under that nonresident person’s resident license shall be determined according to the definitions of classes of insurance in Sections 101 to 120, inclusive. A certificate from the insurance regulatory authority of the nonresident’s home state may be accepted as evidence of the applicant’s license status and the capacity or capacities in which that nonresident person is licensed. The Insurance Commissioner may also verify the producer’s licensing status through the Producer Database maintained by the National Association of Insurance Commissioners, its affiliates or subsidiaries. (b) A nonresident producer who moves from one state to another state or a resident producer who moves from this state to another state shall file a change of address and provide certification from the new resident state within 30 days of the change of legal residence. No fee or license application is required. (c) The license authority granted to the nonresident shall not exceed the class or classes of insurance granted by the license issued under the laws of the state, territory of the United States, or province of Canada where the resident license is maintained. (Amended by Stats. 2021, Ch. 133, Sec. 4. (SB 272) Effective July 23, 2021.)
  111. 1640.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

    Verify source ↗

    A person licensed as an insurance solicitor cannot also act as an insurance agent or broker at the same time, and vice versa.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1640. A person authorized to act as an insurance solicitor is not eligible at the same time to act as an insurance agent or broker, and a person authorized to act as either an insurance agent or broker is not eligible at the same time to act as an insurance solicitor. (Amended by Stats. 1990, Ch. 1420, Sec. 12. Operative January 1, 1992, by Sec. 77 of Ch. 1420.)
  112. 1642.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

    Verify source ↗

    Some insurers and reciprocal or interinsurance exchanges cannot get a license under this chapter, but certain sales-service corporations may be licensed, and insurers may license certain employees under this article.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1642. An insurer or reciprocal or interinsurance exchange is not eligible for any license under this chapter; but a corporation rendering sales services in connection with a separate account may be licensed irrespective of the extent of ownership of the corporation by an insurer. Nothing herein shall be interpreted to prohibit an insurer or reciprocal or interinsurance exchange from licensing its employees who solicit, negotiate, or effect contracts of insurance pursuant to this article. (Amended by Stats. 2000, Ch. 321, Sec. 4.7. Effective January 1, 2001. Operative January 1, 2002, by Sec. 9 of Ch. 321.)
  113. 1644.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

    Verify source ↗

    People under 18 cannot apply for a license under this section and the listed related chapters.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1644. A person under 18 years of age is not eligible to apply for a license pursuant to this chapter, Chapter 5A (commencing with Section 1759), Chapter 6 (commencing with Section 1760), and Chapter 7 (commencing with Section 1800) of Part 2 of Division 1, and Chapter 1 (commencing with Section 14000) and Chapter 2 (commencing with Section 15000) of Division 5. (Amended by Stats. 2009, Ch. 254, Sec. 1. (AB 800) Effective January 1, 2010.)
  114. 1646.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

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    An organization cannot get a license under this chapter if its governing documents forbid it from acting in the licensed capacity.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1646. An organization is not eligible for a license under this chapter if its articles of incorporation or association or agreement of copartnership forbid it to act in the capacity for which a license is sought. (Repealed and added by Stats. 1959, Ch. 4.)
  115. 1647.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

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    Limited liability companies licensed under this section must maintain specified financial security, file compliance information, and keep a valid certification of coverage if they use insurance to satisfy the requirement.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1647.5. (a) Each limited liability company, at the time of licensing pursuant to this chapter and, with respect to surplus line brokers, Chapter 6 (commencing with Section 1760), and at all times during which the company holds an active license, is required to provide security for claims against it as follows: (1) For claims based upon acts, errors, or omissions arising out of the practice of insurance agency, brokerage, or surplus line brokerage, a licensed limited liability company providing insurance agency, brokerage, or surplus line brokerage services shall comply with the requirements of subparagraph (A) or (B), or pursuant to subdivision (b), some combination of those requirements. (A) (i) Maintain a policy or policies of insurance against liability imposed on or against it by law for damages arising out of claims in an amount for each claim of at least one hundred thousand dollars ($100,000) multiplied by the number of licensees rendering professional services on behalf of the company, with a minimum required amount of five hundred thousand dollars ($500,000); however, the maximum amount of insurance is not required to exceed five million dollars ($5,000,000) for claims initially asserted in any one calendar year, less amounts paid in defending, settling, or discharging those claims. In addition, the policy shall contain, at a minimum, a provision that the policy cannot be nonrenewed, canceled, or terminated, without providing written notice to the commissioner within 10 days. (ii) An applicant who wishes to satisfy the requirements of this section wholly, or in part, by maintaining a policy or policies of insurance as set forth in clause (i) shall submit to the commissioner a certification of coverage pursuant to subdivision (d). If a license is automatically issued or renewed without providing this certification, the license may be inactivated by the commissioner upon discovery of the lack of compliance with this paragraph. (iii) If the policy specified in clause (i) contains a deductible or self-insured retention and the policy provides that the insurer is ultimately responsible for payment of the total amount of the claim up to the policy limits, including the deductible or retention, the policyholder shall not be required to maintain security for payment of its deductible limit or self-insured retention liability under the terms set forth in subparagraph (B). (iv) If the policy specified in clause (i) contains a deductible limit or self-insured retention and does not provide that the insurer is responsible for payment of the total amount of the claim up to the policy limits, the policyholder shall maintain security for payment of its deductible limit or self-insured retention under the terms set forth in subparagraph (B). (B) Maintain in trust or bank escrow, cash, bank certificates of deposit, United States Treasury obligations, bank letters of credit, or bonds of insurance companies as security for payment of liabilities imposed by law for damages arising out of all claims in an amount of at least one hundred thousand dollars ($100,000) multiplied by the number of licensees rendering professional services on behalf of the company, with a minimum required amount of five hundred thousand dollars ($500,000); however, the maximum amount of security is not required to exceed five million dollars ($5,000,000) for claims initially asserted in any one calendar year, less amounts paid in defending, settling, or discharging those claims. (b) For purposes of satisfying the security requirements of this section, a limited liability company may aggregate the security provided by it pursuant to subparagraphs (A) and (B) of paragraph (1) of subdivision (a). (c) At the time of licensing pursuant to this article, limited liability companies shall file with the commissioner information, in the manner prescribed by the commissioner, and accompanied by all documentation requested by the commissioner, demonstrating compliance with the financial security requirements of this section. Limited liability companies shall also file an annual confirmation with the commissioner, at a time and in a manner, and with documentation, prescribed by the commissioner, demonstrating continuing compliance with the financial security requirements of this section. (d) If the security requirements of this section are satisfied wholly, or in part, with an insurance policy, then a certification of coverage shall be submitted to the commissioner by the licensee or applicant, and signed by an authorized agent or employee of the insurer. The certification of coverage shall be in the following form: Department of InsuranceLimited Liability CompanyCertification of Coverage Under Section 1647.5 of the California Insurance CodeI hereby certify that the insurance company listed below has issued a policy or policies of insurance as follows:Insured Name: License Number: Company Name: Address: Policy Number(s): Insurance Company: Policy Effective Date: Policy Expiration Date: Specify whether blanket or individual policy: Specify number of licensees rendering services: I hereby certify that the limited liability company named above is insured against claims arising from errors and omissions as defined and described in the amounts and limits set forth in Section 1647.5 of the California Insurance Code. I understand and agree that the insurance coverage for the entity and person(s) insured under this policy or policies may not be terminated, canceled, or nonrenewed, regardless of cause or reason, without providing written notice to the commissioner within ten (10) days.Signature:Date: ___________(Insurance Company Representative)Title: (e) The commissioner may summarily deny or decline to act upon an application for the issuance or renewal of a license, or may summarily inactivate an existing license, for failure to comply with the requirements of this section. (1) If the commissioner inactivates a license for failure to comply with the requirements of subparagraph (A) of paragraph (1) of subdivision (a), the effective date of the inactivation shall be the date on which the insurance policy or policies used to satisfy that requirement expire or are canceled, as indicated by the expiration date specified on the certification of coverage filed pursuant to subdivision (d) or by a notification received from the insurer of termination, cancellation, or nonrenewal of coverage. (2) If the commissioner inactivates a license for failure to comply with the requirements of subparagraph (B) of paragraph (1) of subdivision (a), or with the requirements of subdivision (b), the effective date of the inactivation shall be the date set by the commissioner as the deadline for demonstrating compliance with those provisions. (3) Within 10 working days of the date of inactivation under this section, the commissioner shall send by certified mail to the licensee’s address, as reflected in the commissioner’s records, a notice to the licensee of the inactivation of the license. (4) A license that has been inactivated pursuant to this section shall be reactivated if, within 30 days of the date of inactivation, the licensee demonstrates, in the manner prescribed by the commissioner, satisfaction of the requirements of subparagraph (A) or (B) of paragraph (1) of subdivision (a), or the requirements of subdivision (b), and includes any fees, penalties, and any other required licensing documents necessary to reactivate the license, including new company appointment forms, bonds, and any new business entity endorsements as required. If a certification of coverage is provided to demonstrate compliance with these requirements, and the certification indicates that the insurance policy or policies have been in effect continuously from the date of the inactivation, the license shall be reactivated retroactive to and including the date of inactivation. If the certification of coverage shows an effective date for the insurance policy or policies later than the date of inactivation, the license shall be reactivated as of the effective date of the policy or policies. (f) Any licensee who, acting alone or in concert with others, willfully or knowingly causes or allows to be filed with the commissioner for the purpose of demonstrating compliance with this section a certification of coverage described in subdivision (d), or any other document required by this section, that is false, fraudulent, or misleading, shall be subject to administrative penalty, including suspension or revocation of the licensee’s license, after notice and hearing as provided for in the Administrative Procedure Act. However, nothing in this section shall entitle a licensee to notice or hearing on the summary denial of an application or the summary inactivation of a license pursuant to subdivision (e). (g) The commissioner may disclose on the department’s Internet Web site the names and license numbers of those licensees whose licenses have been inactivated or who have been penalized due to noncompliance with this section. The commissioner may also report that information to the National Association of Insurance Commissioners (NAIC). (h) The commissioner may adopt regulations as necessary to implement this section. (Amended by Stats. 2005, Ch. 312, Sec. 2. Effective January 1, 2006.)
  116. 1649.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

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    An insurer may own or control a separate licensed property broker-agent, casualty broker-agent, or life agent entity, even directly or indirectly.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1649.5. Notwithstanding Section 1642, an insurer may own or control, whether directly or indirectly, a separate entity licensed under this chapter as a property broker-agent, casualty broker-agent, or life agent as defined in Section 1621, 1622, or 1623, respectively. Insurance transacted by a property broker-agent or a casualty broker-agent with and on behalf of the owning or controlling insurer shall be in its capacity as an insurance agent. (Amended by Stats. 2011, Ch. 411, Sec. 13. (AB 1416) Effective January 1, 2012.)
  117. 1650.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

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    Every license issued under this chapter must state the licensee’s name, the license capacity, any conditions, the effective and expiration dates, and—if issued to an organization—an attached separate list of each qualified natural person.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1650. Every license issued under this chapter shall state thereon all the following: (a) The name of the licensee. (b) The capacity of the license. (c) The conditions, if any, subject to which the license is issued. (d) The effective date and expiration date of the license. (e) If issued to an organization, by separate listing attached to it, the name of each natural person who is qualified to be named thereon pursuant to the provisions of Section 1628. (Amended by Stats. 1990, Ch. 1420, Sec. 19. Operative January 1, 1992, by Sec. 77 of Ch. 1420.)
  118. 1651.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. )

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    The commissioner keeps property rights in license documents and may require their surrender for any proper reason.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 3. Licensing [1631 - 1651] ( Article 3 added by Stats. 1959, Ch. 4. ) ## 1651. The commissioner shall at all times retain full property rights in any document evidencing any license issued pursuant to Chapters 5, 6, 7, and 8 of this part. The commissioner may require the surrender of said document for any proper reason. (Amended by Stats. 2021, Ch. 133, Sec. 5. (SB 272) Effective July 23, 2021.)
  119. 1652.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 4. Applications [1652 - 1661] ( Article 4 added by Stats. 1959, Ch. 4. )

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    The commissioner must send fingerprint materials to the Department of Justice for listed license applicants, the DOJ must return a response, and applicants must file a written application and certify it is true under penalty of perjury.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 4. Applications [1652 - 1661] ( Article 4 added by Stats. 1959, Ch. 4. ) ## 1652. (a) The commissioner shall submit to the Department of Justice fingerprint images and related information required by the Department of Justice pursuant to subdivision (u) of Section 11105 of the Penal Code, and the Department of Justice shall provide to the commissioner a state or federal response pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code, for all applicants of each of the following: (1) A property licensee or a casualty licensee, as defined in Section 1625. (2) A personal lines licensee, as defined in Sections 1625.5. (3) A limited lines automobile insurance agent, as defined in Section 1625.55. (4) A life and accident and health or sickness licensee, as defined in Section 1626. (5) A life licensee limited to the payment of funeral and burial expenses, as defined in Section 1676. (6) A limited license to act as an agent on behalf of a cargo owner, a cargo shipper, or both, as described in Section 1757.1. (7) A portable electronics insurance agent license, as defined in Sections 1758.61 and 1758.69. (8) A car rental agent, as defined in Section 1758.89. (9) A credit insurance agent license, as defined in Sections 1758.96 and 1758.992. (10) An administrator, as defined in Section 1759. (11) A reinsurance intermediary-broker, as defined in Section 1781.2. (12) A bail agent license, as defined in Section 1802. (13) A bail permittee license, as defined in Section 1802.5. (14) A bail solicitor license, as defined in Section 1803. (15) A bail fugitive recovery agent license, as defined in Section 1802.3 and Section 1299.01 of the Penal Code. (16) A stock agent who sells securities, as defined in Section 825. (17) An insurance adjuster, as defined in Section 14021. (18) A crop insurance adjuster, as defined in Section 14085. (19) A public insurance adjuster, as defined in Section 15007. (20) A part-time fraternal licensee, as described in Section 11103. (21) A life settlement broker, as defined in Section 10113.1. (22) A motor club agent, as defined in Section 12143. (23) A title marketing representative, as defined in Section 12418. (24) A self-service storage agent, as defined in Section 1758.791. (25) A vehicle service contract license, as described in Section 12815. (b) A license shall be applied for, and renewed by the filing with the commissioner of a written application therefor. The application shall be on a form prescribed by the commissioner, which form shall prescribe the disclosure of information that will aid the commissioner in determining whether the prerequisites for the license sought have been met. The applicant shall declare, under penalty of perjury, that the contents of the application are true and correct. (c) The forms prescribed by the commissioner other than for renewal applications may require authenticated fingerprints of any of the following: (1) Individual applicants. (2) Specified partners or officers of organization applicants. (3) The individuals who are to transact insurance for an organization applicant. (d) The forms may require the fingerprints to be affixed to the application or to an attachment to be affixed to the application. The commissioner, in the commissioner’s discretion, may require the fingerprints on applications for any, some, or all of the licenses issued pursuant to this chapter or Chapter 6 (commencing with Section 1760), Chapter 7 (commencing with Section 1800), or Chapter 8 (commencing with Section 1831), provided that as to any one such type of license the requirement is applied without discrimination to all applicants within specified classifications. The classifications may be made upon any or all of the following bases: (1) Length of continuous residence in this state. (2) Whether or not previously or currently licensed by the commissioner. (3) Whether or not currently licensed by specified regulatory agencies of the State of California which require fingerprints on applications for licenses and routinely process the fingerprints for positive identification. (4) Other reasonable criteria. (e) The commissioner may decline to act on an incomplete or defective application until an amended application which completes the prescribed form is filed with the commissioner. (Amended by Stats. 2025, Ch. 558, Sec. 10. (AB 487) Effective January 1, 2026.)
  120. 1655.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 4. Applications [1652 - 1661] ( Article 4 added by Stats. 1959, Ch. 4. )

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    A license application is not treated as filed unless it is submitted through commissioner-approved electronic service and the proper filing fee is paid.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 4. Applications [1652 - 1661] ( Article 4 added by Stats. 1959, Ch. 4. ) ## 1655. No application for a license shall be deemed filed unless the document has been submitted by a means of electronic service approved by the commissioner, and the proper filing fee, including any required application fee for any qualifying examination required by this chapter, Chapter 5A (commencing with Section 1759), Chapter 6 (commencing with Section 1760), and Chapter 7 (commencing with Section 1800) of Part 2 of Division 1, or Chapter 1 (commencing with Section 14000) and Chapter 2 (commencing with Section 15000) of Division 5 for the license applied for has been paid. However, an applicant may, for good cause shown, request an exemption to the electronic filing requirement. (Amended by Stats. 2009, Ch. 254, Sec. 3. (AB 800) Effective January 1, 2010.)
  121. 1656.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 4. Applications [1652 - 1661] ( Article 4 added by Stats. 1959, Ch. 4. )

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    Applicants for an organizational license must provide the names of licensed natural persons who may act under the license. Nonresident organizational license applicants must name at least one qualifying natural person from outside California.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 4. Applications [1652 - 1661] ( Article 4 added by Stats. 1959, Ch. 4. ) ## 1656. Every applicant for an organizational license shall provide the names of all licensed natural persons who may exercise the power and perform the duties under the license. Applicants for a nonresident organizational license are required to name at least one natural person from a state other than California who may exercise the power and perform the duties under their license. Additional natural persons endorsed to that license may be residents of other states, including California. (Amended by Stats. 2017, Ch. 417, Sec. 12. (AB 1696) Effective January 1, 2018.)
  122. 1656.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 4. Applications [1652 - 1661] ( Article 4 added by Stats. 1959, Ch. 4. )

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    Corporations applying for an insurance license must list major stockholders, officers, and directors, and licensed corporations must notify the commissioner of changes within 30 days, except address changes.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 4. Applications [1652 - 1661] ( Article 4 added by Stats. 1959, Ch. 4. ) ## 1656.1. (a) Every application for a license filed by a corporation shall contain the names and addresses of all stockholders owning 10 percent or more of the corporation’s stock and of all officers and directors of the corporation. (b) Every such licensed corporation shall file a written notice with the commissioner of all changes, except address changes, of its stockholders who own 10 percent or more of the corporation’s stock and of all officers and directors of the corporation. Notification to the commissioner shall be sent within 30 days of the date that the licensed corporation learns of a change of its stockholders who own 10 percent or more of the corporation’s stock and of all officers and directors of the corporation. (c) The commissioner may require the application or notice or both to also disclose additional information necessary to determine whether the applicant or licensee is in compliance with Section 1668.5. (Amended by Stats. 2021, Ch. 627, Sec. 5. (AB 1511) Effective January 1, 2022.)
  123. 1656.2.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 4. Applications [1652 - 1661] ( Article 4 added by Stats. 1959, Ch. 4. )

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    Limited liability companies must disclose specified owners and managers in license applications and report later changes to the commissioner within 30 days; the commissioner may require extra information for Section 1668.5 compliance.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 4. Applications [1652 - 1661] ( Article 4 added by Stats. 1959, Ch. 4. ) ## 1656.2. (a) Every application for a license filed by a limited liability company shall contain the names and addresses of all members owning 10 percent or more of the membership interests of the limited liability company, and of all managers, officers, and directors, if any, of the limited liability company. (b) Every licensed limited liability company shall file a written notice with the commissioner of all changes, except address changes, of its members owning 10 percent or more of the membership interests of the limited liability company and of all managers, officers, and directors, if any, of the limited liability company. Notification to the commissioner shall be sent within 30 days of the date that the licensed limited liability company learns of a change of its members who own 10 percent or more of the membership interests of the limited liability company and of the managers, officers, and directors, if any, of the limited liability company. (c) The commissioner may require the application or notice or both to also disclose additional information to determine whether the applicant or licensee is in compliance with Section 1668.5. (Amended by Stats. 2021, Ch. 627, Sec. 6. (AB 1511) Effective January 1, 2022.)
  124. 1658.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 4. Applications [1652 - 1661] ( Article 4 added by Stats. 1959, Ch. 4. )

    Verify source ↗

    License applications must include the applicant’s addresses, and also an e-mail address for license-related correspondence to the commissioner.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 4. Applications [1652 - 1661] ( Article 4 added by Stats. 1959, Ch. 4. ) ## 1658. Each application filed by a natural person for a license shall contain the residence address, the principal business address, and the mailing address of the applicant. The application shall also contain the e-mail address to which the applicant wants the commissioner to direct all license-related correspondence. Each application for an organization license shall contain the principal business address and the mailing address of the applicant. The application shall also contain the e-mail address to which the applicant wants the commissioner to direct all license-related correspondence. (Amended by Stats. 2009, Ch. 254, Sec. 5. (AB 800) Effective January 1, 2010.)
  125. 1661.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 4. Applications [1652 - 1661] ( Article 4 added by Stats. 1959, Ch. 4. )

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    Certain licensed insurance organizations must promptly file a commissioner-prescribed application or notice to update their license when adding, removing, or changing covered natural persons, and submit it electronically if approved by the commissioner.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 4. Applications [1652 - 1661] ( Article 4 added by Stats. 1959, Ch. 4. ) ## 1661. Whenever an organization licensed as a life agent, property broker-agent, casualty broker-agent, personal lines broker-agent, or limited lines automobile insurance agent desires to change, remove, or add to the natural person or persons who are to transact insurance under authority of its license pursuant to Section 1656, it shall immediately file an application or notice on a form prescribed by the commissioner with the commissioner for an endorsement changing its license accordingly. The form shall be submitted by a means of electronic service approved by the commissioner. The commissioner shall require that the qualifying examination provided by this code be taken by any natural person named by the organization to exercise its agency or brokerage powers who would be required to take and pass the qualifying examination. That natural person or persons and the organization are in all other respects subject to the provisions of this chapter and the insurance laws. (Amended by Stats. 2025, Ch. 566, Sec. 4. (AB 943) Effective January 1, 2026.)
  126. 1662.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 5. Bonds [1662 - 1665] ( Article 5 added by Stats. 1959, Ch. 4. )

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    Certain insurance broker-agents must file and keep the required bond in force before acting as an insurance broker.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 5. Bonds [1662 - 1665] ( Article 5 added by Stats. 1959, Ch. 4. ) ## 1662. A property broker-agent, a casualty broker-agent, and a personal lines broker-agent shall, prior to acting in the capacity of an insurance broker, file with the commissioner and continuously maintain in force the bond required by this article. Any authority to act as broker shall automatically terminate immediately upon there being no bond in force. (Amended by Stats. 2017, Ch. 417, Sec. 14. (AB 1696) Effective January 1, 2018.)
  127. 1663.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 5. Bonds [1662 - 1665] ( Article 5 added by Stats. 1959, Ch. 4. )

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    A bond covered by this section must be executed by an admitted surety insurer, be continuous, and run in favor of the people of the State of California.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 5. Bonds [1662 - 1665] ( Article 5 added by Stats. 1959, Ch. 4. ) ## 1663. Such bond shall be duly executed by an admitted surety insurer, shall be continuous in form, and shall be in favor of the people of the State of California. (Repealed and added by Stats. 1959, Ch. 4.)
  128. 1665.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 5. Bonds [1662 - 1665] ( Article 5 added by Stats. 1959, Ch. 4. )

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    Property broker-agents and casualty broker-agents must have a $10,000 bond.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 5. Bonds [1662 - 1665] ( Article 5 added by Stats. 1959, Ch. 4. ) ## 1665. The bond of a property broker-agent and a casualty broker-agent shall be in the amount of ten thousand dollars ($10,000). Individuals and organizations licensed for both property and casualty are only required to obtain one ten-thousand-dollar ($10,000) bond to act as a broker. The bond shall be contingent on the accounting by the property broker-agent or the casualty broker-agent to any person requesting insurance, for moneys or premiums collected by the property broker-agent or the casualty broker-agent when acting as a broker for insurance other than life. (Amended by Stats. 2011, Ch. 411, Sec. 16. (AB 1416) Effective January 1, 2012.)
  129. 1666.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. )

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    After a license application is filed, the commissioner may investigate and request extra documents; if the applicant satisfies the commissioner and meets any exam requirements, the commissioner may issue a certificate of convenience and then a permanent license.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. ) ## 1666. Upon the filing of an application for a license in accordance with Article 4 of this chapter, the commissioner may make an investigation and require the filing of supplementary documents, affidavits, and statements as may be necessary to obtain a full disclosure of information as will aid the commissioner in determining whether the prerequisites for the license have been met. If the applicant makes a showing satisfactory to the commissioner that the applicant meets all prerequisites, the commissioner, if the applicant is eligible, may issue a certificate of convenience, and upon the applicant meeting any applicable examination requirements may issue a permanent license. (Amended by Stats. 2021, Ch. 133, Sec. 7. (SB 272) Effective July 23, 2021.)
  130. 1666.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. )

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    The commissioner must collect taxpayer or employer identification numbers when issuing or renewing certain insurance licenses, share specified license information with the Franchise Tax Board on request, and keep the information confidential except as allowed.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. ) ## 1666.5. (a) (1) Notwithstanding any other provision of law, the commissioner shall at the time of issuance or renewal of any license under this chapter or Chapter 6 (commencing with Section 1760), Chapter 7 (commencing with Section 1800), or Chapter 8 (commencing with Section 1831) require that any license applicant or licensee provide its federal employer identification number if the license applicant or licensee is a partnership, or the social security number of the license applicant or licensee for all others, except as provided in paragraph (2). (2) The commissioner shall require either a social security number or an individual taxpayer identification number if the license applicant or licensee is an individual applying for or renewing a license under this chapter. (b) A license applicant or licensee failing to provide the federal identification number, social security number, or individual taxpayer identification number shall be reported by the commissioner to the Franchise Tax Board and, if failing to provide after notification pursuant to paragraph (1) of subdivision (b) of Section 19528 of the Revenue and Taxation Code, shall be subject to the penalty provided in paragraph (2) of subdivision (b) of Section 19528 of the Revenue and Taxation Code. (c) (1) The commissioner shall, upon request of the Franchise Tax Board, furnish to the board all of the following information with respect to every license applicant or licensee: (A) License applicant’s or licensee’s name. (B) Address or addresses of record. (C) Federal employer identification number if the entity is a partnership or owner’s name and social security number for all others. (D) Type of license. (E) Effective date of license or renewal. (F) Expiration date of license. (G) Whether license is active or inactive, if known. (H) Whether license is new or a renewal. (2) Notwithstanding paragraph (1), the commissioner shall, upon request of the Franchise Tax Board, furnish to the board either a social security number or an individual taxpayer identification number for individuals licensed under this chapter. (d) For the purposes of this section: (1) “License” includes a certificate, registration, or any other authorization needed to engage in the insurance business regulated by this code. (2) “License applicant” means any individual or entity, other than a corporation, in the process of obtaining a license, certificate, registration, or other means to engage in the insurance business regulated by this code. (3) “Licensee” means any individual or entity, other than a corporation, authorized by a license, certificate, registration, or other means to engage in the insurance business regulated by this code. (e) The reports required under this section shall be filed on magnetic media or in other machine-readable form, according to standards furnished by the Franchise Tax Board. (f) The commissioner shall begin providing to the Franchise Tax Board the information required by this section as soon as economically feasible, but no later than July 1, 1987. The information shall be furnished at a time that the Franchise Tax Board may require. (g) Notwithstanding Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code, the information furnished pursuant to subdivision (a) and subparagraph (C) of paragraph (1) of, and paragraph (2) of, subdivision (c) shall not be deemed to be a public record and shall not be open to the public for inspection. (h) A deputy, agent, clerk, officer, or employee of the commissioner, or any former officer or employee or other individual, hereinafter “employees,” who in the course of the employees’ employment or duty has or has had access to the information required to be furnished under this section, shall not disclose or make known in any manner that information, except as provided in this section. (1) This section shall not prevent an agency from disclosing or making known in any manner that information when the transfer is necessary for the transferee agency to perform its constitutional or statutory duties, and the use is compatible with a purpose for which the information was collected and the use or transfer is accounted for in accordance with Section 1798.25 of the Civil Code. (2) With respect to information transferred from a law enforcement or regulatory agency, or information transferred to another law enforcement or regulatory agency, a use is compatible if the use of the information requested is needed in an investigation of unlawful activity under the jurisdiction of the requesting agency or for licensing, certification, or regulatory purposes by that agency and on the condition that the law enforcement or regulatory agency requesting the information needed agrees to keep that information confidential in accordance with Section 1798.25 of the Civil Code. (3) A law enforcement or regulatory agency that requests information from the commissioner shall, upon request, identify for the commissioner the intended use for the information. The commissioner shall have the discretion to determine whether to transfer the information to the law enforcement or regulatory agency and shall not transfer the information if the commissioner determines that the information will be used for an improper purpose. (i) It is the intent of the Legislature in enacting this section to utilize the social security account number, individual taxpayer identification number, or federal employer identification number for the purpose of establishing the identification of persons affected by state tax laws and, to that end, the information furnished pursuant to this section shall be used exclusively for an agency to perform its constitutional or statutory duties. (j) This section shall become operative on July 1, 2018. (Amended by Stats. 2022, Ch. 28, Sec. 118. (SB 1380) Effective January 1, 2023.)
  131. 1667.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. )

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    Except as provided in Section 1669, an applicant must be allowed to be heard before a license is denied.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. ) ## 1667. Except as provided in Section 1669, a license shall not be denied without an opportunity to the applicant to be heard in support of his application. When a hearing is held, the proceedings shall be conducted in accordance with Chapter 5 of Part 1 of Division 3 of Title 2 of the Government Code. (Added by Stats. 1959, Ch. 4.)
  132. 1668.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. )

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    The commissioner may deny a license application under this chapter if listed disqualifying conditions are present.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. ) ## 1668. The commissioner may deny an application for a license issued pursuant to this chapter if any of the following are true: (a) The applicant is not properly qualified to perform the duties of a person holding the license for which the applicant applied. (b) The granting of the license will be against public interest. (c) The applicant does not intend actively and in good faith to carry on as a business with the general public the transactions that would be permitted by the issuance of the license for which the applicant applied. (d) The applicant is not of good business reputation. (e) The applicant is lacking in integrity. (f) The applicant has been refused a professional, occupational, or vocational license or had a professional, occupational, or vocational license suspended or revoked by a licensing authority for reasons that should preclude the granting of the license for which the applicant applied. (g) The applicant seeks the license for the purpose of avoiding or preventing the operation or enforcement of the insurance laws of this state. (h) The applicant has knowingly or willfully made a misstatement in an application to the commissioner for a license, or in a document filed in support of that application, or has made a false statement in testimony given under oath before the commissioner or another person acting in the commissioner’s stead. (i) The applicant has previously engaged in a fraudulent practice or act or has conducted any business in a dishonest manner. (j) The applicant has shown incompetency or untrustworthiness in the conduct of any business, or has by commission of a wrongful act or practice in the course of any business exposed the public or those dealing with the applicant to the danger of loss. (k) The applicant has knowingly misrepresented the terms or effect of an insurance policy or contract. (l) The applicant has failed to perform a duty expressly enjoined upon them by this code or has committed an act expressly forbidden by this code. (m) The applicant has been convicted of any of the following: (1) A felony. (2) A misdemeanor specified by this code or other laws regulating insurance. (3) A public offense having as one of its necessary elements a fraudulent act or an act of dishonesty in acceptance, custody, or payment of money or property. (n) The applicant has aided or abetted a person in an act or omission that would constitute grounds for the suspension, revocation, or refusal of a license or certificate issued under this code to the person aided or abetted. (o) The applicant has permitted a person in the applicant’s employ to violate this code. (p) The applicant has violated a law relating to conduct of business that could lawfully be done only under authority conferred by that license. (q) The applicant has submitted to the commissioner a false or fraudulent certificate pursuant to subdivision (d) of Section 1749.5. (r) The applicant has been found liable by clear and convincing evidence in a civil action involving allegations of elder or dependent abuse, oppression, fraud, malice, misappropriation or conversion of funds, misrepresentation, or breach of fiduciary duty. A judgment, plea, or verdict of guilty, or a plea of nolo contendere is deemed to be a conviction within the meaning of this section. (Amended by Stats. 2021, Ch. 627, Sec. 7. (AB 1511) Effective January 1, 2022.)
  133. 1668.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. )

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    This section adds conduct that can lead to suspension or revocation of a permanent license.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. ) ## 1668.1. In addition to the grounds set forth in Section 1668, the following acts shall constitute cause to suspend or revoke any permanent license issued pursuant to this chapter: (a) The licensee has induced a client, whether directly or indirectly, to cosign or make a loan, make an investment, make a gift, including a testamentary gift, or provide any future benefit through a right of survivorship to the licensee, or to any of the persons listed in subdivision (e). (b) The licensee has induced a client, whether directly or indirectly, to make the licensee or any of the persons listed in subdivision (e) a beneficiary under the terms of any intervivos or testamentary trust or the owner or beneficiary of a life insurance policy or an annuity policy. (c) The licensee has induced a client, whether directly or indirectly, to make the licensee, or a person who is registered as a domestic partner of the licensee, or is related to the licensee by birth, marriage, or adoption, a trustee under the terms of any intervivos or testamentary trust. However, if the licensee is also licensed as an attorney in any state, the licensee may be made a trustee under the terms of any intervivos or testamentary trust, provided that the licensee is not a seller of insurance to the trustor of the trust. (d) The licensee, who has a power of attorney for a client has sold to the client or has used the power of attorney to purchase an insurance product on behalf of the client for which the licensee has received a commission. (e) Subdivisions (a) and (b) shall also apply if the licensee induces the client to provide the benefits in those subdivisions to the following people: (1) A person who is related to the licensee by birth, marriage, or adoption. (2) A person who is a friend or business acquaintance of the licensee. (3) A person who is registered as a domestic partner of the licensee. (f) This section shall not apply to situations in which the client is: (1) A person related to the licensee by birth, marriage, or adoption. (2) A person who is registered as a domestic partner of the licensee. (Added by Stats. 2003, Ch. 546, Sec. 4. Effective January 1, 2004.)
  134. 1668.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. )

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    The commissioner may deny a license application, or suspend or revoke an organization’s permanent license, when a controlling person has certain misconduct or disqualifying history.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. ) ## 1668.5. (a) The commissioner may deny an application for a license issued pursuant to this chapter, and may suspend or revoke the permanent license of an organization licensed pursuant to this chapter as authorized by Section 1738, if the applicant or holder of the permanent license is an organization and a controlling person of the organization is any of the following: (1) The controlling person has previously engaged in a fraudulent practice or act or has conducted any business in a dishonest manner. (2) The controlling person has shown incompetency or untrustworthiness in the conduct of any business, or has by commission of a wrongful act or practice in the course of any business exposed the public or those dealing with the controlling person to the danger of loss. (3) The controlling person has knowingly misrepresented the terms or effect of an insurance policy or contract. (4) The controlling person has failed to perform a duty expressly enjoined upon them by a provision of this code or has committed an act expressly forbidden by a provision of this code. (5) The controlling person has been convicted of any of the following: (A) A felony. (B) A misdemeanor specified by this code or other laws regulating insurance. (C) A public offense having as one of its necessary elements a fraudulent act or an act of dishonesty in acceptance, custody, or payment of money or property. A judgment, plea, or verdict of guilty, or a plea of nolo contendere is deemed to be a conviction within the meaning of this section. (6) The controlling person has aided or abetted a person in an act or omission that would constitute grounds for the suspension, revocation, or refusal of a license or certificate issued under this code to the person aided or abetted. (7) The controlling person has permitted a person in the controlling person’s employ to violate this code. (8) The controlling person has violated a law relating to conduct of business that could lawfully be done only under authority conferred by a license under this chapter. (9) The controlling person has been found liable by clear and convincing evidence in a civil action involving allegations of elder or dependent abuse, oppression, fraud, malice, misappropriation or conversion of funds, misrepresentation, or breach of fiduciary duty. (b) As used in this section, “controlling person” means a person who possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of the organization, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, including, but not limited to, power that is the result of an official position with or corporate office held by the person. Control shall be presumed to exist if a person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, more than 10 percent of the voting securities of the organization. This presumption may be rebutted by a showing that control does not exist in fact. The commissioner may, after furnishing all persons in interest notice and opportunity to be heard, determine that control exists in fact, notwithstanding the absence of a presumption to that effect. (Amended by Stats. 2021, Ch. 627, Sec. 8. (AB 1511) Effective January 1, 2022.)
  135. 1669.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. )

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    The commissioner may deny a license application without a hearing if the applicant has certain prior convictions or recent license denials, suspensions, or revocations. If an order was based on a plea that never becomes a conviction, the commissioner must vacate the order when the applicant petitions.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. ) ## 1669. The commissioner may, without hearing, deny an application if the applicant has done one or more of the following: (a) (1) Been convicted of a felony. (2) Been convicted of a misdemeanor specified by this code or by other laws regulating insurance. (3) A judgment, plea, or verdict of guilty, or a plea of nolo contendere is deemed to be a conviction within the meaning of this subdivision. (b) Had a previous application for a professional, occupational, or vocational license denied for cause by a licensing authority, within five years of the date of the filing of the application to be acted upon, on grounds that should preclude the granting of a license by the commissioner under this chapter. (c) Had a previously issued professional, occupational, or vocational license suspended or revoked for cause by a licensing authority, within five years of the date of the filing of the application to be acted upon, on grounds that should preclude the granting of a license by the commissioner under this chapter. If the commissioner issues an order based on a plea that does not at any time result in a judgment of conviction, the commissioner shall vacate the order upon petition by the applicant. (Amended by Stats. 2020, Ch. 184, Sec. 13. (SB 1255) Effective January 1, 2021.)
  136. 1670.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. )

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    If a license applicant does not fully qualify and get the license, or have it denied, within the stated one-year period, the application is automatically denied without prejudice unless the commissioner sets that denial aside or stays it for good cause in a statement-of-issues proceeding.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. ) ## 1670. If an applicant for any license under this chapter, Chapter 7 (commencing with Section 1800) of this part, or Chapter 1 (commencing with Section 14000) or Chapter 2 (commencing with Section 15000) of Division 5, within one year from the date of the receipt by the commissioner of the application, whether or not the filing is complete, or within one year from the date of the issuance to the applicant of a certificate of convenience, if any, whichever is the later date, neither fully qualifies for and receives that license on a permanent basis, nor is denied its issue, the application is automatically denied without prejudice to the filing of a new application for the license unless in a proceeding under a statement of issues the commissioner for good cause determines the denial should be set aside or stayed. (Amended by Stats. 2025, Ch. 558, Sec. 11. (AB 487) Effective January 1, 2026.)
  137. 1672.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. )

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    The commissioner may deny an organization’s license application unless the organization and all named natural persons meet the license qualifications. The qualifying examination is only for natural persons.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 6. License Qualifications [1666 - 1672] ( Article 6 added by Stats. 1959, Ch. 4. ) ## 1672. The commissioner may deny an application filed by an organization, unless both the organization and all natural persons named thereon meet the qualifications for the license for which such application is filed, but the qualifying examination shall be administered only to natural persons. In case the application is for more than one natural person to be named thereon and at least one, but not all, of such persons satisfy the examination requirement, the commissioner may issue such license omitting therefrom the names of the person or persons who fail to satisfy the examination requirement. (Repealed and added by Stats. 1959, Ch. 4.)
  138. 1675.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. )

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    Several categories of insurance license applicants are exempt from this article’s examination requirements.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. ) ## 1675. The following applicants who have theretofore been licensed under this code are exempt from the requirements of this article: (a) An applicant for a license to act as a property broker-agent or a casualty broker-agent who has been licensed as a property broker-agent, casualty broker-agent, or surplus line broker during any part of the license year in which the application is filed or the immediately preceding license year. (b) An applicant for a license to act as a life agent who has been licensed as a life agent during any part of the license year in which the application is filed or the immediately preceding license year. (c) An applicant for a license to act as an accident and health or sickness agent who has been licensed as an accident and health or sickness agent during any part of the license year in which the application is filed or the immediately preceding license year. (d) An applicant for a license to act as a travel insurance agent. (e) An applicant specifically exempted from the particular qualifying examination requirement by other provisions of this code. (f) (1) A nonresident licensee who applies for a property broker-agent, casualty broker-agent, personal lines broker-agent, or life agent resident license in this state, and who is currently licensed for the same lines of authority in the state of the current resident license, shall not be required to complete an examination. The application shall be received within 90 days of the cancellation of the applicant’s resident license and the producer database records, maintained by the National Association of Insurance Commissioners, shall indicate that the producer is licensed in good standing for the line of authority requested. (2) Upon issuance of the California resident license, the examination waiver also applies to adding additional lines of authority to the California resident license provided that the individual was previously licensed in good standing for the requested additional lines of authority, and the application is received within 12 months of the cancellation of the applicant’s previous resident license in another state. (Amended by Stats. 2020, Ch. 184, Sec. 14. (SB 1255) Effective January 1, 2021.)
  139. 1676.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. )

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    The commissioner may not issue a permanent license unless the applicant passed the qualifying exam within the last 12 months, with listed exceptions. Some applicants must pass one combined exam and pay the life agent fee, and certain limited life-license applicants take a narrower exam instead of the full life agent exam.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. ) ## 1676. (a) Except as set forth in Sections 1675 and 1679, the commissioner shall not issue a permanent license pursuant to this chapter to an applicant therefor unless the applicant has within the 12-month period next preceding the date of issue of the license taken and passed the qualifying examination for that license. This section shall not apply to a person licensed as a property broker-agent or as a casualty broker-agent who applies for a license as a personal lines broker-agent. (b) An application for both the life and accident and health or sickness license types shall meet the requirement in subdivision (a) by passing one examination covering subjects pertaining to both license types. These applicants shall pay the fee for a life agent, as specified in paragraph (4) of subdivision (a) of Section 1751. (c) An applicant for a life license pursuant to Section 1626 or a life license limited to the payment of funeral and burial expenses who is limited by the terms of a written agreement with an insurer that has filed on that life agent’s behalf a notice of appointment with the commissioner to transact only specific life insurance policies or annuities having an initial face amount of twenty thousand dollars ($20,000) or less that are designated by the purchaser for the payment of funeral and burial expenses, shall not be required to take the full life agent examination to obtain a license. The applicant shall be required to take an examination developed to test their knowledge of topics relevant to the type of policies that they are restricted to sell. (Amended by Stats. 2020, Ch. 184, Sec. 15. (SB 1255) Effective January 1, 2021.)
  140. 1677.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. )

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    The commissioner must include specified language-exam participation and pass-rate information in the annual report to the Governor.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. ) ## 1677. (a) Each qualifying examination for a license pursuant to this chapter shall be in writing and shall be of sufficient scope to satisfy the commissioner that the applicant has sufficient knowledge of, and is reasonably familiar with, the insurance laws of this state and with the provisions, terms, and conditions of the insurance that may be transacted pursuant to the license sought, and that the applicant has a general and fair understanding of the obligations and duties of the holder of that license. (b) The examination for a license as a life agent, accident and health or sickness agent¸ property broker-agent, and casualty broker-agent shall be provided in English, Spanish, Simplified Chinese, Vietnamese, and Korean. (c) On or after July 1, 2024, the examination for a license as a life agent, accident and health or sickness agent¸ property broker-agent, and casualty broker-agent shall also be provided in Tagalog. (d) As part of the commissioner’s annual report to the Governor required under Section 12922, the commissioner shall also include the following information: (1) The number of people taking the Spanish, Simplified Chinese, Vietnamese, Korean, and Tagalog examinations. (2) The first-time pass rate of the Spanish, Simplified Chinese, Vietnamese, Korean, and Tagalog examinations, including a comparison between the comparable licensing examination taken in English. (e) This section shall become operative on January 1, 2024. (Amended (as added by Stats. 2016, Ch. 560, Sec. 3) by Stats. 2023, Ch. 136, Sec. 1. (AB 451) Effective January 1, 2024. Section operative January 1, 2024, by its own provisions.)
  141. 1678.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. )

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    The commissioner must administer qualifying license examinations and may offer them more often or in other places in the state.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. ) ## 1678. The commissioner shall administer qualifying license examinations under this chapter at test centers designated by the commissioner and through online proctored license examinations. The commissioner may give the examinations at more frequent intervals or in other places throughout the state. (Amended by Stats. 2023, Ch. 204, Sec. 10. (AB 1140) Effective January 1, 2024.)
  142. 1679.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. )

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    Nonresident license applicants must take the same qualifying exam as resident applicants, unless a reciprocity exception applies. The commissioner may also make reciprocal arrangements with other jurisdictions, and nonresident applicants for organizational licenses must name at least one out-of-state person who may exercise the license’s powers and duties.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. ) ## 1679. (a) A nonresident applicant for a license shall be subject to the same qualifying examination as is required of a resident applicant. The examination may be administered to an eligible nonresident applicant through the insurance authority of the state, territory of the United States, or province of Canada of the applicant’s residence; provided, however, that the commissioner may, in the commissioner’s discretion, enter into a reciprocal arrangement with the officer having supervision of the insurance business in any other state, territory of the United States, or province of Canada whose qualification standards for the applicant to be examined are substantially the same as or in excess of those of this state, to accept, in lieu of the examination of an applicant residing therein, a certificate of the officer to the effect that the applicant is licensed in that state, territory of the United States, or province of Canada in a capacity similar to that for which a license is sought in this state and has complied with its qualification standards in respect to all of the following: (1) Experience or training. (2) Reasonable familiarity with the broad principles of insurance licensing and regulatory laws and with the provisions, terms, and conditions of the insurance which the applicant proposes to transact. (3) A fair and general understanding of the obligations and duties of a holder of the license sought. (b) The provisions of this section shall not apply to a nonresident applicant who maintains a license in a jurisdiction that grants reciprocity to California residents in accordance with Section 1638.5. (c) A nonresident applicant for an organizational license shall name at least one person from a state other than California who may exercise the power and perform the duties under their license. Additional persons endorsed to that license may be residents of other states, including California. (Amended by Stats. 2021, Ch. 133, Sec. 10. (SB 272) Effective July 23, 2021.)
  143. 1681.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. )

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    An applicant who fails the qualifying examination may retake it, subject to Section 1682.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. ) ## 1681. If an applicant fails the qualifying examination, that applicant may, subject to the provisions of Section 1682, retake a qualifying examination. (Amended by Stats. 2021, Ch. 133, Sec. 11. (SB 272) Effective July 23, 2021.)
  144. 1681.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. )

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    No person may cheat or help cheat on a licensing examination, and willful violations can lead to misdemeanor penalties, fines, jail time, and a five-year bar imposed by the commissioner.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. ) ## 1681.5. (a) No person shall cheat on, subvert, or attempt to subvert, any licensing examination given by the department, including, but not limited to, engaging in, soliciting, or procuring any of the following: (1) Any communication between one or more examinees and any other person, other than a proctor or examination official, while the examination is in progress. (2) The taking of all or a part of the examination by a person other than the applicant. (3) Possession or use at any time during the examination or while the examinee is on the examination premises of any device, material, or document that is not expressly authorized for use by examinees during the examination, including, but not limited to, notes, crib sheets, textbooks, and electronic devices. (4) Failure to follow any examination instruction or rule related to examination security. (5) The provision of false, fraudulent, or materially misleading information concerning education, experience, or other qualifications as part of, or in support of, any application for admission to any examination. (b) Any person who willfully violates this section is guilty of a misdemeanor punishable by a fine not exceeding ten thousand dollars ($10,000) or by imprisonment in a county jail not exceeding one year. (c) The commissioner shall bar any candidate caught willfully cheating under this section from taking any license examination and from holding an active license under any provision of this code for a period of five years. (Added by Stats. 2005, Ch. 312, Sec. 3. Effective January 1, 2006.)
  145. 1682.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. )

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    A person cannot take more than 10 license qualification exams of the same type in any 12-month period, and cannot retake a passed listed exam unless the commissioner or applicable law requires it.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. ) ## 1682. (a) (1) A person shall not be admitted to more than 10 license qualification examinations of the same type in any 12-month period. (2) If a person is admitted to 10 license qualification examinations of the same type in any 12-month period, that person shall not be admitted to another examination of that type until a 12-month period has passed since that 10th examination. (3) For purposes of this subdivision, the 12-month period ends at the end of the day immediately preceding the one-year anniversary date of the examination administration in question. (b) For purposes of subdivision (a), the covered types of license qualification examinations are as follows: (1) The accident and health or sickness agent type examinations, which include both of the following: (A) The accident and health or sickness agent examination. (B) The life and accident and health or sickness agent combination examination. (2) The bail agent examination. (3) The casualty broker-agent type examinations, which include all of the following: (A) The casualty broker-agent examination. (B) The commercial insurance examination. (C) The property and casualty broker-agent combination examination. (4) The commercial insurance type examinations, which include all of the following: (A) The commercial insurance examination. (B) The casualty broker-agent examination. (C) The property and casualty broker-agent combination examination. (D) The property broker-agent examination. (5) The insurance adjuster examination. (6) The life and disability analyst examination. (7) The life limited to the payment of funeral and burial expense type examinations, which include all of the following: (A) The life limited to the payment of funeral and burial expense examination. (B) The life and accident and health or sickness agent combination examination. (C) The life agent examination. (8) The life and accident and health or sickness agent combination type examinations, which include all of the following: (A) The life and accident and health or sickness agent combination examination. (B) The accident and health or sickness agent examination. (C) The life limited to the payment of funeral and burial expense examination. (D) The life agent examination. (9) The life agent type examinations, which include all of the following: (A) The life agent examination. (B) The life and accident and health or sickness agent combination examination. (C) The life limited to the payment of funeral and burial expense examination. (10) The limited lines automobile type examinations, which include all of the following: (A) The limited lines automobile examination. (B) The personal lines broker-agent examination. (C) The property and casualty broker-agent combination examination. (D) The property broker-agent examination. (11) The personal lines broker-agent type examinations, which include all of the following: (A) The personal lines broker-agent examination. (B) The limited lines automobile examination. (C) The property and casualty broker-agent combination examination. (D) The property broker-agent examination. (12) The property broker-agent type examinations, which include all of the following: (A) The property broker-agent examination. (B) The commercial insurance examination. (C) The limited lines automobile examination. (D) The personal lines broker-agent examination. (E) The property and casualty broker-agent combination examination. (13) The property and casualty broker-agent combination type examinations, which include all of the following: (A) The property and casualty broker-agent combination examination. (B) The casualty broker-agent examination. (C) The commercial insurance examination. (D) The limited lines automobile examination. (E) The personal lines broker-agent examination. (F) The property broker-agent examination. (14) The public insurance adjuster examination. (c) Notwithstanding subdivision (a), a person who has passed any of the following license qualification examinations shall not be admitted to a subsequent administration of that examination, unless that person is required by the commissioner or applicable law to retake the examination. (1) The accident and health or sickness agent examination. (2) The bail agent examination. (3) The casualty broker-agent examination. (4) The commercial insurance examination. (5) The insurance adjuster examination. (6) The life and disability analyst examination. (7) The life limited to the payment of funeral and burial expense examination. (8) The life and accident and health or sickness agent combination examination. (9) The life agent examination. (10) The limited lines automobile examination. (11) The personal lines broker-agent examination. (12) The property broker-agent examination. (13) The property and casualty broker-agent combination examination. (14) The public insurance adjuster examination. (d) Except as provided in this article, there is not a limitation on the frequency with which a person may take license qualification examinations. (Amended by Stats. 2020, Ch. 184, Sec. 17. (SB 1255) Effective January 1, 2021.)
  146. 1683.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. )

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    An applicant must schedule or reschedule the qualifying examination through an electronic service approved by the commissioner.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. ) ## 1683. An applicant shall schedule or reschedule the applicant’s qualifying examination using an electronic service approved by the commissioner. If an applicant fails to appear at the time and place set for the examination, the applicant shall be deemed to have failed the examination. If the applicant fails the qualifying examination, the commissioner shall give the applicant written notice thereof. (Amended by Stats. 2021, Ch. 133, Sec. 12. (SB 272) Effective July 23, 2021.)
  147. 1684.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. )

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    This section expands certain references in the article to include people connected to an organization’s license.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 7. License Qualification Examinations [1675 - 1684] ( Article 7 added by Stats. 1959, Ch. 4. ) ## 1684. Except as otherwise provided in this article, whenever reference is made in this article to an applicant for a license, such reference includes each natural person who applies to be named on the license of an organization, and wherever reference is made to a person who has been licensed in a specified capacity, such reference shall also apply to a person named to act in such capacity under the license of an organization. (Added by Stats. 1959, Ch. 4.)
  148. 1685.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 8. Certificates of Convenience [1685 - 1698] ( Article 8 added by Stats. 1959, Ch. 4. )

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    The commissioner may issue an eligible person a certificate of convenience to act in place of certain licensees in specified business situations.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 8. Certificates of Convenience [1685 - 1698] ( Article 8 added by Stats. 1959, Ch. 4. ) ## 1685. The commissioner may issue to an eligible person a certificate of convenience to act as any of the following: (a) Any type of a licensee under this chapter or Chapter 6 (commencing with Section 1760), Chapter 7 (commencing with Section 1800), or Part 5 (commencing with Section 121401) of Division 2 to administer the business of a licensed person who has died or who has been declared incompetent by the judgment of a court of competent jurisdiction. That certificate of convenience may be denominated an estate certificate of convenience. (b) Any type of a licensee under this chapter or Chapter 6 (commencing with Section 1760), Chapter 7 (commencing with Section 1800), or Part 5 (commencing with Section 121401) of Division 2 to conserve the business of a licensed natural person who enters the military service of the United States or to conserve the business of an organization under the conditions specified in Section 1697. That certificate of convenience may be denominated a military service certificate. (Amended by Stats. 2012, Ch. 786, Sec. 20. (AB 2303) Effective January 1, 2013.)
  149. 1686.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 8. Certificates of Convenience [1685 - 1698] ( Article 8 added by Stats. 1959, Ch. 4. )

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    A person is eligible for an estate certificate of convenience only if they fit one of the listed roles tied to the estate or business of a deceased broker-agent or life agent.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 8. Certificates of Convenience [1685 - 1698] ( Article 8 added by Stats. 1959, Ch. 4. ) ## 1686. To be eligible for an estate certificate of convenience, a person shall be one of the following: (a) The executor or administrator of the estate of a deceased property broker-agent, casualty broker-agent, or life agent. (b) If no executor or administrator has been appointed, the surviving spouse or heir otherwise entitled to conduct the business of the deceased property broker-agent, casualty broker-agent, or life agent. (c) The conservator of the estate of a property broker-agent, casualty broker-agent, or life agent. (Amended by Stats. 2011, Ch. 411, Sec. 21. (AB 1416) Effective January 1, 2012.)
  150. 1687.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 8. Certificates of Convenience [1685 - 1698] ( Article 8 added by Stats. 1959, Ch. 4. )

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    A person eligible for a military service certificate of convenience must be nominated by the holder of a permanent license who entered U.S. military service, except as provided in Section 1637.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 8. Certificates of Convenience [1685 - 1698] ( Article 8 added by Stats. 1959, Ch. 4. ) ## 1687. Except as provided in Section 1637, to be eligible for a military service certificate of convenience, a person is required to be nominated therefor by the holder of a permanent license who, while the holder, entered the military service of the United States. “Military service” has the meanings ascribed to it by Section 101 of the Servicemembers Civil Relief Act of 2003 (Public Law 108-189). (Amended by Stats. 2012, Ch. 786, Sec. 21. (AB 2303) Effective January 1, 2013.)
  151. 1693.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 8. Certificates of Convenience [1685 - 1698] ( Article 8 added by Stats. 1959, Ch. 4. )

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    An estate certificate of convenience ends when the first listed event happens.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 8. Certificates of Convenience [1685 - 1698] ( Article 8 added by Stats. 1959, Ch. 4. ) ## 1693. An estate certificate of convenience expires upon the happening of any of the following events, whichever occurs first: (a) Upon the filing with the commissioner of a certified copy of an order appointing an executor or administrator, if the certificate of convenience has been issued to a person other than the person so appointed executor or administrator. (b) Upon the filing with the commissioner of a certified copy of an order appointing a new conservator of the estate of a property broker-agent, casualty broker-agent, or life agent. (c) Upon the disposal of the business of the property broker-agent, casualty broker-agent, or life agent who is deceased or for whom a conservator of the estate has been appointed. (d) Upon the expiration of one year after the death of the deceased property broker-agent, casualty broker-agent, or life agent; provided, however, that if during the said year the holder of the certificate of convenience files an application for a license to act as a property broker-agent, casualty broker-agent, or life agent in the individual capacity of the holder, then the certificate of convenience may remain in force until the holder thereof has been given an opportunity to take the qualifying examination for the license. (e) Upon the termination of the conservatorship of the estate of the property broker-agent, casualty broker-agent, or life agent. (Amended by Stats. 2021, Ch. 133, Sec. 13. (SB 272) Effective July 23, 2021.)
  152. 1694.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 8. Certificates of Convenience [1685 - 1698] ( Article 8 added by Stats. 1959, Ch. 4. )

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    A military service certificate of convenience ends when the nominating licensee is relicensed, and it cannot stay in force past the period stated in Section 1722.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 8. Certificates of Convenience [1685 - 1698] ( Article 8 added by Stats. 1959, Ch. 4. ) ## 1694. A military service certificate of convenience shall terminate upon the relicensing of the nominating licensee, but in no event shall it remain in force beyond the period set forth in Section 1722. (Added by Stats. 1959, Ch. 4.)
  153. 1697.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 8. Certificates of Convenience [1685 - 1698] ( Article 8 added by Stats. 1959, Ch. 4. )

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    A military service certificate of convenience may be issued to an organization only if specified license and personnel conditions are met.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 8. Certificates of Convenience [1685 - 1698] ( Article 8 added by Stats. 1959, Ch. 4. ) ## 1697. A military service certificate of convenience may be issued to an organization only under the following circumstances: (a) Such organization is the holder of a permanent license, and (b) The person entering the military service of the United States is the only natural person named on the license of such organization. (Amended by Stats. 1969, Ch. 220.)
  154. 1698.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 8. Certificates of Convenience [1685 - 1698] ( Article 8 added by Stats. 1959, Ch. 4. )

    Verify source ↗

    The military service certificate of convenience ends at the earlier of two times: when a natural person qualifies to be named on the organization’s permanent license, or six months after the certificate is issued.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 8. Certificates of Convenience [1685 - 1698] ( Article 8 added by Stats. 1959, Ch. 4. ) ## 1698. The military service certificate of convenience referred to in Section 1697 expires at one of the following times, whichever occurs first: (a) Upon the qualification of a natural person to be named on the permanent license of the organization; or (b) Six months after the issuance of the certificate of convenience. (Added by Stats. 1959, Ch. 4.)
  155. 17.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

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    For this code, “oath” includes affirmation.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 17. “Oath” includes affirmation. (Enacted by Stats. 1935, Ch. 145.)
  156. 170.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Parties to Contract: Mortgagor and Mortgagee [170 - 172] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An insurance policy tied to a mortgagor’s property is treated as covering the mortgagor’s interest, and the mortgagor remains a party to the original contract.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Parties to Contract: Mortgagor and Mortgagee [170 - 172] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 170. Unless the policy otherwise provides, if a mortgagor of property effects insurance in his own name providing that the loss shall be payable to the mortgagee, or assigns a policy of insurance to a mortgagee, the insurance is deemed to be upon the interest of the mortgagor and the mortgagor does not cease to be a party to the original contract. (Enacted by Stats. 1935, Ch. 145.)
  157. 1702.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. )

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    Licenses issued under this chapter must be issued to the holder.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. ) ## 1702. All licenses issued pursuant to this chapter shall be issued to the holder thereof. (Amended by Stats. 1973, Ch. 543.)
  158. 1703.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. )

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    Applicants for an original license under this chapter and related chapters must sign an authorization allowing the commissioner to receive disclosure of certain fiduciary-fund financial records.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. ) ## 1703. Every applicant for an original license under this chapter, Chapter 5A (commencing with Section 1759), Chapter 6 (commencing with Section 1760), or Chapter 7 (commencing with Section 1800) shall, as part of the application, endorse an authorization for disclosure to the commissioner of financial records of any fiduciary funds as defined in Section 1733, pursuant to Section 7473 of the Government Code. The authorization shall continue in force and effect for so long as the licensee continues to be licensed by the department. (Amended by Stats. 2008, Ch. 300, Sec. 4. Effective January 1, 2009.)
  159. 1704.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. )

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    This section limits when a licensee may act for an insurer, requires certain appointment notices and consents, and sets rules for license inactivity, reactivation, and liability when a solicitor is appointed.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. ) ## 1704. (a) Any person acting as a licensee under this chapter shall not act as an agent of an insurer unless the insurer has filed with the commissioner a notice of appointment, executed by the insurer, appointing the licensee as the insurer’s agent. Every property broker-agent, casualty broker-agent, personal lines broker-agent, or limited lines automobile insurance agent acting in the capacity of an insurance solicitor shall have filed on his or her behalf with the commissioner a notice executed by an insurance agent or insurance broker appointing and agreeing to employ the solicitor as an employee within this state. Additional notices of appointment may be filed by other insurers before the license is issued and thereafter as long as the license remains in force. The authority to transact insurance given to a licensee by an insurer, property broker-agent, casualty broker-agent, personal lines broker-agent, or limited lines automobile insurance agent, as the case may be, by appointment shall be effective as of the date the notice of appointment is signed. That authority to transact shall apply to transactions occurring after that date and for the purpose of determining the insurer’s, property broker-agent’s, casualty broker-agent’s, personal lines broker-agent’s, or limited lines automobile insurance agent’s liability for acts of the appointed licensee. No notice of appointment of a life agent, property broker-agent, casualty broker-agent, personal lines broker-agent, limited lines automobile insurance agent, or travel insurance agent shall be filed under this subdivision unless the licensee being appointed has consented to that filing. Each appointment made under this subdivision shall by its terms continue in force until: (1) The cancellation or expiration of the license applied for or held at the time the appointment was filed. (2) The filing of a notice of termination by the insurer or employing property broker-agent or casualty broker-agent, or by the appointed life agent, property broker-agent, casualty broker-agent, travel insurance agent, or insurance solicitor. (b) Upon the termination of all appointments, or all endorsements naming the licensee on the license of an organization licensee, and the cancellation of the bond required pursuant to Section 1662 if acting as a broker, the permanent license shall not be canceled, but shall become inactive. It may be renewed pursuant to Section 1718. It may be reactivated at any time prior to its expiration by the filing of a new appointment pursuant to this section, Section 1707, and Section 1751.3, or the filing of a new bond pursuant to Section 1662. An inactive license shall not permit its holder to transact any insurance for which a valid, active license is required. (c) Upon the termination of all appointments of a person licensed under a certificate of convenience, that certificate shall be canceled and shall be returned by its lawful custodian to the commissioner. (d) A property broker-agent or a casualty broker-agent appointing an insurance solicitor pursuant to this section, if a natural person, shall be the holder of a permanent license to act as such a broker-agent or the holder of a certificate of convenience so to act issued pursuant to either subdivision (a) or (b) of Section 1685. If the property broker-agent or the casualty broker-agent is an organization, it shall be the holder of a permanent license. (e) The filing of an incomplete or deficient action notice with the department shall require the filing of an amended, complete action notice, together with the payment of the fee therefor specified in subdivision (l) of Section 1751. (f) A notice of appointment appointing a solicitor may be filed by a second or subsequent property broker-agent or casualty broker-agent. The broker-agent seeking to appoint the solicitor shall enter into an agreement with all other property broker-agents and casualty broker-agents with whom the insurance solicitor has an existing appointment. The agreement shall govern how the broker-agents will determine on which property broker-agent’s or casualty broker-agent’s behalf the solicitor is working when dealing with individuals who are customers of none of the property broker-agents and casualty broker-agents with whom the solicitor has an appointment. If the agreement does not identify which broker-agent or broker-agents are liable for the act of the solicitor, all property broker-agents and casualty broker-agents with whom the solicitor is appointed at the time of the act shall be jointly and severally liable for that act. (Amended by Stats. 2012, Ch. 786, Sec. 29. (AB 2303) Effective January 1, 2013.)
  160. 1704.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. )

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    A licensed life agent may usually present an insurance proposal and send an application for an insurer not specifically appointed, but must follow subdivision (b). The insurer must file a notice of appointment with the commissioner within 14 days after the application, and payments before issuance must be made only by specified instruments payable to the insurer.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. ) ## 1704.5. (a) Except as provided in subdivision (b), a licensed life agent may present a proposal for insurance to a prospective policyholder on behalf of a life insurer for which the life agent is not specifically appointed, and may also transmit an application for insurance to that insurer. If a policy of insurance is issued pursuant to that application, the insurer is considered to have authorized the agent to act on its behalf, and the insurer is responsible for all actions of the agent that relate to the application and policy as if the agent had been duly appointed for the insurer. Not more than 14 days after the life agent submits an application for insurance to the insurer for which the insurer issues a policy, the insurer shall forward to the commissioner a notice of appointment of the life agent as the insurer’s agent in accordance with the requirements of this article. Nothing in this section obliges an insurer to accept an application for underwriting from a life agent. Any payments made by the prospective policyholder prior to issuance of the policy shall be made only in the form of a draft, check, cashier’s check, traveler’s check, money order, or similar instrument made payable to the insurer to which the application is transmitted. (b) A licensed life agent who is not specifically appointed for a particular life insurer may not (1) present a proposal to a prospective policyholder for insurance with that insurer or (2) transmit an application for insurance to that insurer if the insurer requires all its life agents to represent only that insurer or a group of affiliated insurers of which that insurer is a member or to submit risks to that insurer or group of affiliated insurers prior to submitting them to other insurers. (Amended by Stats. 1990, Ch. 1420, Sec. 39. Operative January 1, 1992, by Sec. 77 of Ch. 1420.)
  161. 1705.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. )

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    When certain insurers or broker-agents file a notice of appointment for an original license applicant, the filing is treated as a declaration that the applicant meets the stated reputation, qualification, and experience requirements.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. ) ## 1705. An insurer, or employing property broker-agent or casualty broker-agent, by filing a notice of appointment on behalf of an applicant for an original license pursuant to Section 1704, and who is not then licensed pursuant to this chapter or Chapter 6 (commencing with Section 1760), Chapter 7 (commencing with Section 1800), shall be deemed by that act to have declared that: (a) The applicant is of good reputation. (b) The applicant is worthy of the license sought. An insurer, property broker-agent, or casualty broker-agent, by filing a notice of appointment on behalf of an applicant for an original license to act as a life agent, property broker-agent, casualty broker-agent, or insurance solicitor, where the applicant for any reason will not be issued a certificate of convenience pending examination under Article 8 (commencing with Section 1685), shall be deemed to have declared that the applicant has had experience or instruction in classes of insurance, the transaction of which is authorized by the license sought, or will be given the necessary instruction within 30 days after the issuance of the license. Should the applicant for a life agent, property broker-agent, or casualty broker-agent license be a copartnership, corporation, or association, the insurer filing the appointment shall be deemed to have made the declarations set forth in subdivisions (a) and (b) of this section as regards both the business organization and each natural person whose name appears in the application as one to exercise the agency powers of the license sought. The insurer shall be deemed to have made the declaration in the preceding paragraph only as regards the natural person or persons to be named on the organization’s license initially. Whenever a copartnership, corporation, or association licensed as a life agent, property broker-agent, or casualty broker-agent files to add to any such license the name of a natural person to exercise the agency powers thereunder, the business organization shall be deemed to have made the appropriate declarations regarding the natural person, as set forth in this section, as are required of an insurer filing a notice of appointment on behalf of an applicant for an original license. (Amended by Stats. 2011, Ch. 411, Sec. 24. (AB 1416) Effective January 1, 2012.)
  162. 1707.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. )

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    Notices of appointment or termination under this article must be filed on forms prescribed by the commissioner within 15 days of the appointment or termination, except as otherwise provided in Section 1704.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. ) ## 1707. Except as otherwise provided in Section 1704.5, each notice of appointment or notice of termination of appointment filed pursuant to this article shall be filed on forms prescribed by the commissioner within 15 days of appointment or termination. (Amended by Stats. 2006, Ch. 740, Sec. 7. Effective January 1, 2007.)
  163. 1707.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. )

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    The commissioner may destroy certain appointment or termination documents after the relevant facts have been entered in official records.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. ) ## 1707.5. The commissioner in lieu of retaining in his or her files a copy of the notices of appointment or notices of termination described in Section 1707, if he or she has made entry of the facts pertaining to the appointments or terminations or the statements, including the cancellation, if any thereof, in some portion of his or her official records, may at any time thereafter destroy the documents. The commissioner’s certification as to the content of such an entry shall be competent evidence of the facts therein stated for any purpose in any court or administrative action or proceeding and shall be accepted in lieu of the actual documents. (Amended by Stats. 1990, Ch. 1420, Sec. 42. Operative January 1, 1992, by Sec. 77 of Ch. 1420.)
  164. 1707.51.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. )

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    Certain pre-December 1, 1991 applicants must be allowed to qualify under the licensure rules that were in effect on December 31, 1991, and the department must give public notice about the tests and qualification process.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. ) ## 1707.51. (a) Notwithstanding any other provision of law, qualified applicants who applied in proper form and requested an examination date for a property, casualty, or life insurance license prior to December 1, 1991, shall be provided the opportunity to qualify for licensure under statutory licensure provisions in effect on December 31, 1991. (b) The department may require the applicant to execute a sworn statement subject to a penalty of perjury and denial of license declaring that they meet the qualifications set forth in subdivision (a). The department shall provide public notice as to the availability of these tests and as to the procedure and requirements necessary to qualify for the test. The tests shall be administered within 90 days of enactment of this section. (Amended by Stats. 2011, Ch. 411, Sec. 25. (AB 1416) Effective January 1, 2012.)
  165. 1707.7.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. )

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    The commissioner must include specified licensing and complaints data in the Section 12922 report for each of the next five years.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 9. Issuance of Licenses [1702 - 1707.7] ( Article 9 added by Stats. 1959, Ch. 4. ) ## 1707.7. As part of the report required under Section 12922, the commissioner shall provide the following information for the previous calendar year ending December 31 for five years after the operative date of this section: (a) The total number of applications filed for a property and casualty broker-agent license, a property broker-agent license, a casualty broker-agent license, a personal lines broker-agent license, a limited lines auto-only agent license, a life agent license, and an accident and health or sickness agent license. (b) The total number of licensees issued a property and casualty license, a property broker-agent license, a casualty broker-agent license, a personal lines license, a limited lines automobile license, a life license, and an accident and health or sickness license. (c) The total number of licensees with both a life agent license and an accident and health or sickness agent license. (d) The total justified complaints against the licensees enumerated in subdivision (b) annually for five years. (e) At the end of five years following the issuance of auto-only agent, life agent, and accident and health or sickness agent licenses, a cumulative summary of the data required by this section compared to the licenses issued for property and casualty broker-agent, property broker-agent, casualty broker-agent, personal lines broker-agent, and life agent for the year immediately preceding the creation of this section. (Amended by Stats. 2020, Ch. 184, Sec. 18. (SB 1255) Effective January 1, 2021.)
  166. 1708.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 10. Termination of Licenses [1708 - 1712.5] ( Article 10 added by Stats. 1959, Ch. 4. )

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    A licensee may surrender any license for cancellation at any time, by written notice delivered to the commissioner.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 10. Termination of Licenses [1708 - 1712.5] ( Article 10 added by Stats. 1959, Ch. 4. ) ## 1708. A licensee may at any time surrender for cancellation any license under which that licensee is permitted to act in any of the capacities specified in this chapter. The licensee may make that surrender by written notice thereof delivered to the commissioner. (Amended by Stats. 2021, Ch. 133, Sec. 14. (SB 272) Effective July 23, 2021.)
  167. 171.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Parties to Contract: Mortgagor and Mortgagee [170 - 172] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    If there is a provision or assignment, the mortgagor’s prior acts that would otherwise void the insurance still have the same effect, and the named mortgagee may perform the mortgagor’s required insurance acts.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Parties to Contract: Mortgagor and Mortgagee [170 - 172] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 171. In case of such a provision or assignment, any act of the mortgagor, prior to the loss and which would otherwise avoid the insurance, will have the same effect, although the property is in the hands of the mortgagee; but any act which, under the contract of insurance, is to be performed by the mortgagor, may be performed by the mortgagee therein named, with the same effect as if it had been performed by the mortgagor. (Enacted by Stats. 1935, Ch. 145.)
  168. 1710.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 10. Termination of Licenses [1708 - 1712.5] ( Article 10 added by Stats. 1959, Ch. 4. )

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    Licenses issued to natural persons end when that person dies.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 10. Termination of Licenses [1708 - 1712.5] ( Article 10 added by Stats. 1959, Ch. 4. ) ## 1710. All licenses issued to natural persons terminate upon the death of such person. (Repealed and added by Stats. 1959, Ch. 4.)
  169. 1711.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 10. Termination of Licenses [1708 - 1712.5] ( Article 10 added by Stats. 1959, Ch. 4. )

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    An organization generally stops being eligible to hold the license when a copartnership dissolves or changes membership, when an association terminates, or when a corporation dissolves. A surviving or continuing copartnership can keep transacting insurance temporarily after a membership change if it files the required application, pays the fee, meets the bond and continuity requirements, and has the application signed by a general partner.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 10. Termination of Licenses [1708 - 1712.5] ( Article 10 added by Stats. 1959, Ch. 4. ) ## 1711. For the purposes of this chapter and except as provided in this article, an organization ceases to exist as an entity eligible to hold a license: (a) Upon dissolution of a copartnership or upon any change in membership of a copartnership. (b) Upon the termination of an association. (c) Upon dissolution of a corporation. Provided, however, should a change occur in the membership of a copartnership licensed under this chapter, the surviving or continuing copartnership may continue to transact insurance under the license issued to the predecessor copartnership until action is taken by the commissioner on the application herein prescribed if the following requirements are met: (1) The surviving or continuing copartnership within 30 days files an application on a form prescribed by the commissioner for registration of the change in membership, and pays the lawful fee therefor and, if acting as an insurance broker, furnishes the bond required under Article 5 (commencing with Section 1662). (2) At least one person who exercised the agency or brokership powers of the predecessor copartnership continues to exercise the agency or brokership powers of the surviving or continuing copartnership. (3) That application for registration be signed by a general partner. (Amended by Stats. 1990, Ch. 1420, Sec. 43. Operative January 1, 1992, by Sec. 77 of Ch. 1420.)
  170. 1712.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 10. Termination of Licenses [1708 - 1712.5] ( Article 10 added by Stats. 1959, Ch. 4. )

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    If a license entity ends, its right to transact insurance ends automatically, but certain licensed entities may keep operating under the existing license if specified conditions are met and a new application and fees are filed within 30 days.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 10. Termination of Licenses [1708 - 1712.5] ( Article 10 added by Stats. 1959, Ch. 4. ) ## 1712. The termination of the existence of the license entity as provided in Section 1711, automatically terminates the right of that entity to transact insurance thereunder; except that a natural person, copartnership, association, or corporation licensed under this article, may continue to transact insurance under an existing license in either a different capacity or as a different organization or entity if a natural person is named to exercise the agency or brokerage powers of the license entity, and that natural person remains eligible to be so named, and if no substantial change in ownership and no change in control of the licensed insurance business has taken place; provided, that within 30 days following the change the person or the successor copartnership, association or corporation files a properly completed and executed application in the form prescribed by the commissioner for an appropriate license and pays the lawful fees therefor. Nothing herein shall be construed to nullify any provision of Section 1718 except that any fee paid as required by subdivisions (a) or (b) of Section 1718 for a license not issued may be applied towards the fee for filing an application under this section. (Amended by Stats. 1990, Ch. 1420, Sec. 44. Operative January 1, 1992, by Sec. 77 of Ch. 1420.)
  171. 1712.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 10. Termination of Licenses [1708 - 1712.5] ( Article 10 added by Stats. 1959, Ch. 4. )

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    An organization licensed as a property broker-agent, casualty broker-agent, or life agent loses an operative license when the last named natural person is removed or terminated, and the license cannot be renewed unless it is reactivated by fixing all deficiencies.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 10. Termination of Licenses [1708 - 1712.5] ( Article 10 added by Stats. 1959, Ch. 4. ) ## 1712.5. (a) The license of an organization licensed as a property broker-agent, casualty broker-agent, or life agent shall become inoperative upon the removal or termination of the last natural person named thereon, pursuant to Section 1656. (b) Unless the license is reactivated by the correction of all deficiencies including, if necessary, the adding of a natural person to transact insurance under the authority of the organization’s license pursuant to Section 1661, the license shall not be renewed. (Amended by Stats. 2017, Ch. 417, Sec. 18. (AB 1696) Effective January 1, 2018.)
  172. 1716.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 11. License Terms [1716 - 1723] ( Article 11 added by Stats. 1959, Ch. 4. )

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    This article does not apply to certificates of convenience, except a military service certificate of convenience issued to a natural person.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 11. License Terms [1716 - 1723] ( Article 11 added by Stats. 1959, Ch. 4. ) ## 1716. The provisions of this article shall not apply to any certificate of convenience other than a military service certificate of convenience issued to a natural person. (Added by Stats. 1959, Ch. 4.)
  173. 1717.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 11. License Terms [1716 - 1723] ( Article 11 added by Stats. 1959, Ch. 4. )

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    Licenses under this chapter must follow the license term in Section 1630, and may be issued for the full term or, if applied for during the term, for the remaining balance.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 11. License Terms [1716 - 1723] ( Article 11 added by Stats. 1959, Ch. 4. ) ## 1717. All licenses issued under this chapter shall be for the license term specified in Section 1630. Such licenses may be issued for all of such term, or, upon application made during any such term, for the balance thereof. Such license term shall commence as specified in Section 1630. (Amended by Stats. 1981, Ch. 348, Sec. 5.)
  174. 1717.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 11. License Terms [1716 - 1723] ( Article 11 added by Stats. 1959, Ch. 4. )

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    The commissioner must institute year-round licensing for production agency licensees, starting with license renewals in 1986.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 11. License Terms [1716 - 1723] ( Article 11 added by Stats. 1959, Ch. 4. ) ## 1717.5. Notwithstanding any other provision of this article, the commissioner shall institute year-round licensing of production agency licensees commencing with those license renewals taking place in 1986. (Amended by Stats. 1985, Ch. 770, Sec. 8.9.)
  175. 1718.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 11. License Terms [1716 - 1723] ( Article 11 added by Stats. 1959, Ch. 4. )

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    This section sets deadlines and fees for renewing an insurance license, and says the licensee must renew even if no notice is received.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 11. License Terms [1716 - 1723] ( Article 11 added by Stats. 1959, Ch. 4. ) ## 1718. (a) Not less than 60 days before a permanent license will expire, the commissioner may use an electronic delivery method, including email or other similar electronic method of delivery, to deliver, or may mail, to the latest email or mailing address appearing on the commissioner’s records, an application to the licensee to renew the license for the appropriate succeeding license term. It is the licensee’s responsibility to renew whether or not a renewal notice is received. The commissioner may accept a late renewal, provided the licensee’s failure to comply is due to clerical error or inadvertence on the part of the department. (b) Application for renewal of a license may be filed on or before the expiration date. When filed under this subdivision, the fee for filing shall be as specified in Section 1750. (c) The application for renewal of an expired license may be filed after the expiration date and until that same month and day of the next succeeding year. The fee for a renewal application under this subdivision shall be the fee specified in subdivision (b) and a delinquent fee in the amount specified for a one-year period in Section 1750 for the filing. Each licensee shall be subject to payment of delinquent fees under this section. (Amended by Stats. 2021, Ch. 133, Sec. 15. (SB 272) Effective July 23, 2021.)
  176. 1719.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 11. License Terms [1716 - 1723] ( Article 11 added by Stats. 1959, Ch. 4. )

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    The commissioner may not issue a permanent license in the 30 days before a previously licensed entity’s expiration date unless the renewal application has been filed and the filing fee has been paid.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 11. License Terms [1716 - 1723] ( Article 11 added by Stats. 1959, Ch. 4. ) ## 1719. The commissioner shall not issue any permanent license within 30 days prior to the expiration date on record for a previously licensed entity unless the person shall have also filed an application for renewal of the license for that license year or term directly following the expiration date to which the application for renewal relates and shall have paid the fee for filing specified in Section 1750. As to the filing of the renewal application, the provisions of Section 1718 shall not be applicable. (Amended by Stats. 1985, Ch. 770, Sec. 9.1.)
  177. 172.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Parties to Contract: Mortgagor and Mortgagee [170 - 172] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    If the insurer agrees to a transfer of insurance from mortgagor to mortgagee and adds obligations for the assignee, the mortgagor’s acts cannot affect the assignee’s rights.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Parties to Contract: Mortgagor and Mortgagee [170 - 172] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 172. If an insurer assents to the transfer of insurance from a mortgagor to a mortgagee, and, at the time of the assent, imposes further obligations on the assignee, the acts of the mortgagor cannot affect the rights of the assignee. (Enacted by Stats. 1935, Ch. 145.)
  178. 1720.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 11. License Terms [1716 - 1723] ( Article 11 added by Stats. 1959, Ch. 4. )

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    A renewing licensee may keep operating on the existing license for up to 60 days after expiration, or until the department says the renewal application is deficient, if renewal requirements are met.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 11. License Terms [1716 - 1723] ( Article 11 added by Stats. 1959, Ch. 4. ) ## 1720. (a) A licensee who has applied to renew a license under this chapter shall be entitled to continue operating under the existing license for 60 days after its specified expiration date, or until notified by the department that the renewal application is deficient, whichever comes first, if the applicant has satisfied all license renewal requirements, including, but not limited to, the following: (1) The submission of the applicable renewal application and fee on or before the expiration date of the license. (2) The satisfaction of all required continuing education or training requirements. (b) This section shall not apply to any license that is suspended or revoked. (Amended by Stats. 2005, Ch. 312, Sec. 4. Effective January 1, 2006.)
  179. 1722.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 11. License Terms [1716 - 1723] ( Article 11 added by Stats. 1959, Ch. 4. )

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    A licensed natural person who enters U.S. military service gets a waiver of the renewal-filing requirement and may keep the license in force during service and for a limited time after release.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 11. License Terms [1716 - 1723] ( Article 11 added by Stats. 1959, Ch. 4. ) ## 1722. If a natural person while licensed pursuant to the provisions of this chapter or Chapter 6 (commencing with Section 1760), Chapter 7 (commencing with Section 1800), or Chapter 8 (commencing with Section 1831) of this part, Part 5 (commencing with Section 12140) of Division 2, or Chapter 1 (commencing with Section 14000) or Chapter 2 (commencing with Section 15000) of Division 5 enters the military service of the United States and is in that service at a time prescribed for the filing of a renewal application, the filing of that application is waived, and the license held by that licensee at the time of the licensee’s entry into military service shall remain in force during the period of that military service and until the end of the license year in which the licensee is released from that service, but not for less than six months after that release. During that period, the licensee may secure a license of the type held by the licensee upon entry into military service upon the filing of an application and paying the fee therefor without the necessity of taking an examination or paying a penalty. (Amended by Stats. 2019, Ch. 502, Sec. 1. (SB 240) Effective October 3, 2019.)
  180. 1723.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 11. License Terms [1716 - 1723] ( Article 11 added by Stats. 1959, Ch. 4. )

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    If a license application shows certain convictions, the commissioner must either start a proceeding or give written consent.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 11. License Terms [1716 - 1723] ( Article 11 added by Stats. 1959, Ch. 4. ) ## 1723. (a) At the time any original or renewal license application that is submitted to the commissioner shows a conviction of the applicant of a felony involving dishonesty or breach of trust, or of a violation of Section 1033 of Title 18 of the United States Code, the commissioner shall either commence a proceeding pursuant to Section 1668 or 1669, or Section 1738 in the case of a renewal application, or give written consent to the applicant or licensee pursuant to paragraph (2) of subsection (e) of Section 1033 of Title 18 of the United States Code. (b) This section shall apply to all licenses and registrations issued by the commissioner pursuant to this code, whether included in this chapter or in any other chapter of this code, and without regard to whether another chapter incorporates the requirements of this section by reference. (Added by Stats. 1999, Ch. 782, Sec. 3. Effective January 1, 2000.)
  181. 1724.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    An agent, broker, or solicitor who is not an active member of the State Bar of California may not share a commission or other compensation with an active State Bar member.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1724. An agent, broker, or solicitor who is not an active member of the State Bar of California may not share a commission or other compensation with an active member of the State Bar of California. For purposes of this section, “commission or other compensation” means pecuniary or nonpecuniary compensation of any kind relating to the sale or renewal of an insurance policy or certificate or an annuity, including, but not limited to, a bonus, gift, prize, award, or finder’s fee. (Added by Stats. 2003, Ch. 547, Sec. 4. Effective January 1, 2004.)
  182. 1724.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    License applicants and licensees must file true and fictitious business names with the commissioner, and licensees may not keep using a name after written notice that it violates this section.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1724.5. Every individual and organization licensee and every applicant for a license shall file with the commissioner in writing the true name of the individual or organization and also all fictitious names under which an individual or organization conducts or intends to conduct business and after licensing shall file with the commissioner any change in or discontinuance of those names. The commissioner may in writing disapprove the use of any true or fictitious name (other than the bona fide natural name of an individual) by any licensee on any of the following grounds: (a) The name is an interference with or is too similar to a name already filed and in use by another licensee; (b) The use of the name may mislead the public in any respect; (c) The name states, infers or implies that the licensee is an insurer, motor club, hospital service plan or entitled to engage in insurance activities not permitted under licenses held or applied for; (d) The name states or implies that the licensee is an underwriter. This subdivision shall not prevent natural persons who are life licensees from describing themselves as an “underwriter” or from using the designation “Chartered Life Underwriter” if entitled thereto nor shall it prevent a natural person who is a fire and casualty licensee from using the designation “Chartered Property and Casualty Underwriter” if entitled thereto nor a producers trade association each member of which is also separately licensed from having a name containing the word underwriter; or (e) The licensee has already filed and not discontinued the use of more than two names including the true name. This subdivision shall not prevent a licensee who has lawfully purchased or succeeded to the business or businesses of other licensees from using for each business not more than two additional names, true or fictitious, consisting of names used by the licensee’s predecessors in the conduct of those businesses. A licensee may not use a true or fictitious name after being notified by the commissioner in writing that the use is contrary to this section. If the commissioner determines that there are facts in mitigation in connection with the continued use of the name the commissioner may permit its use for a specified reasonable period of time if in connection therewith the commissioner imposes conditions that will protect the public and achieve the purposes of this section. The permission and conditions shall be written. The grounds specified in subdivisions (a), (c), and (d) shall not be applicable to the true name of any organization licensee that on October 1, 1961, holds under that name any type of license issued under this chapter (commencing with Section 1621) or Chapter 8 (commencing with Section 1831) of this part nor to any fictitious name in use on October 1, 1961, by any individual or organization holding any type of license issued under this chapter or Chapter 8 of this part on that date, provided the fictitious name is filed with the commissioner on or before January 2, 1962. The ground specified in subdivisions (b) and (e) shall not be applicable to any licensee who, or which, on October 1, 1961, holds a license issued under this chapter or Chapter 8 of this part until on and after January 2, 1964. (Amended by Stats. 2021, Ch. 133, Sec. 16. (SB 272) Effective July 23, 2021.)
  183. 1725.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    A license holder must prominently display the license in the office.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1725. A license to act as a resident property broker-agent, casualty broker-agent, personal lines broker-agent, and limited lines automobile insurance agent shall be prominently displayed by the holder thereof in the license holder’s office in a manner whereby anyone may readily inspect it and ascertain both its currency and the capacity in which its holder is licensed to act. (Amended by Stats. 2021, Ch. 133, Sec. 17. (SB 272) Effective July 23, 2021.)
  184. 1725.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    Certain insurance licensees must show their license number and the word “Insurance” on specified business materials and in relevant emails, with set font-size rules.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1725.5. (a) A person licensed under Section 1625, 1625.5, 1625.55, 1626, 1758.1, 1765, 1800, 14020, or 15006, or Chapter 8 (commencing with Section 1831), shall affix, type, or print on business cards, written price quotations for insurance products, and print advertisements distributed exclusively in this state for insurance products, its license number in a type size that is at least as large as any indicated telephone number, address, or fax number or in 12-point type, or in 8-point type for business cards, whichever is larger. If a licensee includes the names of multiple licensed organizations on a business card, written price quotation, or print advertisement distributed exclusively in this state, affixing, typing, or printing the license number of any one of the organizations complies with the requirements of this section. (b) A person licensed under Section 1625, 1625.5, 1625.55, 1626, 1758.1, 1765, 14020, or 15006, or Chapter 8 (commencing with Section 1831), shall affix, type, or print on business cards, written price quotations for insurance products, and print advertisements distributed in this state for insurance products, the word “Insurance” in a type size that is at least as large as the smallest telephone number or in 12-point type, or in 8-point type for business cards, whichever is larger. (c) A person licensed under Section 1625, 1625.5, 1625.55, 1626, 1758.1, 1765, 14020, or 15006, or Chapter 8 (commencing with Section 1831), shall include the person’s license number in the emails the person sends that involve an activity for which a license is required. A person’s license number shall be in a type size that is no smaller than the largest of any telephone number, street address, or email address of the person included in the email. The license number of an individual licensee shall appear adjacent to or on the line below the individual’s name or title. The license number of an organizational licensee shall appear adjacent to or on the line below the organization’s name if the email is sent from the organization and not an individual licensee, and the communication involves an activity for which a license is required. (d) A natural person who is a solicitor, as defined in Section 1624, working exclusively as an employee of a motor club agent, or working exclusively for a property broker-agent or casualty broker-agent on behalf of a motor club, shall use the organizational licensee number of that person’s employer. (e) A person in violation of this section shall be subject to a fine levied by the commissioner in the amount of two hundred dollars ($200) for the first offense, five hundred dollars ($500) for the second offense, and one thousand dollars ($1,000) for the third and subsequent offenses. The penalty shall not exceed one thousand dollars ($1,000) for any one offense. These fines shall be deposited into the Insurance Fund. (f) A separate penalty shall not be imposed upon each piece of printed material that fails to conform to the requirements of this section. (g) If the commissioner finds that the failure of a licensee to comply with the provisions of subdivision (a) or (b) is due to reasonable cause or circumstance beyond the licensee’s control, and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect, the licensee may be relieved of the penalty in subdivision (e). (h) A licensee seeking to be relieved of the penalty in subdivision (e) shall file with the department a statement with supporting documents setting forth the facts upon which the licensee bases its claims for relief. (i) This section does not apply to a person or entity that is not currently required to be licensed by the department or that is exempted from licensure. (j) This section does not apply to general advertisements of motor clubs that merely list insurance products as one of several services offered by the motor club, and do not provide any details of the insurance products. (k) This section does not apply to life insurance policy illustrations required by Chapter 5.5 (commencing with Section 10509.950) of Part 2 of Division 2 or to life insurance cost indexes required by Chapter 5.6 (commencing with Section 10509.970) of Part 2 of Division 2. (Amended by Stats. 2023, Ch. 280, Sec. 1. (AB 1578) Effective January 1, 2024.)
  185. 1726.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    Certain insurance agents or brokers who advertise online and transact insurance in California must display specified identifying information on their website homepage or a clearly visible home-page link.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1726. (a) A person who is licensed in this state as an insurance agent or broker, advertises insurance on the internet, and transacts insurance in this state, shall identify all of the following information in the same size type on the person’s internet website home page or in a prominently displayed link from the home page, regardless of whether the insurance agent or broker maintains the internet presence or if the presence is maintained on the person’s behalf: (1) The person’s name as filed with the commissioner that has not been disapproved pursuant to Section 1724.5. (2) The person’s state of domicile and principal place of business. (3) The person’s California insurance license number. (4) The word “insurance.” (b) A person shall be deemed to be transacting insurance in this state when the person advertises on the internet, regardless of whether the insurance agent or broker maintains the internet presence or if it is maintained on the person’s behalf, and does any of the following: (1) Solicits a California resident. (2) Provides an insurance premium quote to a California resident. (3) Accepts an application for coverage from a California resident. (4) Communicates with a California resident regarding one or more terms of an agreement to provide insurance or an insurance policy. (5) Enters into negotiations before executing an insurance contract with a California resident. (6) Executes an insurance contract with a California resident. (7) Transacts matters after executing an insurance contract with a California resident that arise out of that contract. (c) This section shall become operative on July 1, 2020. (Repealed in (Sec. 6) and added by Stats. 2019, Ch. 201, Sec. 7. (AB 1813) Effective January 1, 2020. Section operative July 1, 2020, by its own provisions.)
  186. 1727.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    The commissioner must issue reasonable recordkeeping rules for certain licensees, and those licensees must keep the required records.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1727. (a) The commissioner shall, after notice and hearing, promulgate reasonable rules and regulations specifying the manner and type of records to be maintained by those licensees acting as insurance agents and brokers and the location where the records shall be kept. Those records shall be open to inspection or examination by the commissioner at all times, and the commissioner may at any time require the licensee to furnish any information maintained or required to be maintained in those records. (b) Every licensee acting as an insurance agent and broker shall keep the records as required by the regulations promulgated pursuant to subdivision (a). (c) Every licensee acting as an insurance agent and broker employing a licensee in the capacity of an insurance solicitor shall keep the records required by the regulations promulgated pursuant to subdivision (a) for any insurance transacted by the insurance solicitor in the capacity of employee of the employing licensee. (Amended by Stats. 1999, Ch. 782, Sec. 4. Effective January 1, 2000.)
  187. 1728.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    Resident insurance property broker-agents and resident insurance casualty broker-agents must keep a principal office in California.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1728. Every resident insurance property broker-agent and every resident insurance casualty broker-agent shall maintain a principal office in this state for the transaction of business. The address of the office shall, pursuant to Section 1658, be specified on all applications for license and renewal applications. (Amended by Stats. 2011, Ch. 411, Sec. 29. (AB 1416) Effective January 1, 2012.)
  188. 1729.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    Licensees and license applicants must immediately tell the commissioner about certain address or email changes, using a commissioner-approved electronic service.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1729. Every licensee and every applicant for a license shall immediately notify the commissioner using an electronic service approved by the commissioner of any change in that licensee or applicant’s email, residence, principal business, or mailing address as given to the commissioner pursuant to Sections 1658 and 1728. (Amended by Stats. 2021, Ch. 133, Sec. 19. (SB 272) Effective July 23, 2021.)
  189. 1729.2.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    Applicants, licensees, and certain business entity licensees must report changes in specified background information to the commissioner, usually in writing within 30 days after learning of the change.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1729.2. (a) An applicant or licensee shall notify the commissioner when any of the background information set forth in this section changes after the application has been submitted or the license has been issued. 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. (b) A business entity licensee, upon learning of a change in background information pertaining to any unlicensed person listed on its business entity license or application therefor, shall notify the commissioner of that change. The changes subject to this requirement include changes pertaining to any unlicensed officer, director, partner, member, or controlling person, or any other natural person named under the business entity license or in an application therefor. (c) The following definitions apply for the purposes of this section: (1) “License” includes all types of licenses issued by the commissioner pursuant to Chapter 5 (commencing with Section 1621), Chapter 5A (commencing with Section 1759), Chapter 6 (commencing with Section 1760), Chapter 6.5 (commencing with Section 1781.1), Chapter 7 (commencing with Section 1800), and Chapter 8 (commencing with Section 1831) of Part 2 of Division 1, Chapter 1 (commencing with Section 10110) of Part 2 of Division 2, Chapter 4 (commencing with Section 12280) of Part 5 of Division 2, Article 8 (commencing with Section 12418) of Chapter 1 of Part 6 of Division 2, and Chapter 1 (commencing with Section 14000) and Chapter 2 (commencing with Section 15000) of Division 5. (2) “Background information” means any of the following: 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 or regarding conduct or activity for which a professional or occupational license was required but not possessed; an administrative or civil action filed by, or on behalf of, a government or regulatory agency alleging any unlawful conduct, activity, or omission; any licensee’s discharge or attempt to discharge, in a personal or organizational bankruptcy proceeding, an obligation regarding any insurance premiums or fiduciary funds owed to any person, including a premium finance company, or managing general agent; and any admission, or judicial finding or determination, of fraud, misappropriation or conversion of funds, misrepresentation, or breach of fiduciary duty. (3) “Applicant” and “licensee” include individual and organization applicants and licensees, and officers, directors, partners, members, and controlling persons (as defined in subdivision (b) of Section 1668.5) of an organization. (d) Notification to the commissioner shall be in writing and shall be sent within 30 days of the date the applicant or licensee learns of the change in background information. (e) The commissioner may adopt regulations necessary or desirable to implement this section. (Amended by Stats. 2025, Ch. 558, Sec. 12. (AB 487) Effective January 1, 2026.)
  190. 1729.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    Certain insurance agents may use a related corporation’s or association’s name on business stationery and advertising if they clearly identify their relationship in one of the listed ways.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1729.5. A property broker-agent, casualty broker-agent, or life agent who has a service contract with a corporation licensed under this code or who is a stockholder or member of any incorporated association or corporation organized under the Corporations Code for the purpose of providing services to property broker-agents, casualty broker-agents, or life agents may use the name of that corporation or association on any stationery or advertisements and other written or printed matter used to identify the business of the property broker-agent, casualty broker-agent, or life agent provided that the name of the property broker-agent, casualty broker-agent, or life agent is clearly identified as bearing only that relationship to the corporation or association in one of the following ways: “Representing ____;” “A stockholder of ____;” “Placing business through ____;” “Using services of ____.” The use of the corporation or association name in the manner provided in this section shall not constitute such use as would mislead the public within the meaning of Section 1724.5. (Amended by Stats. 2011, Ch. 411, Sec. 30. (AB 1416) Effective January 1, 2012.)
  191. 1730.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    A licensee must not misrepresent the type of license it is using or do insurance transactions that are not authorized by its licenses.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1730. A licensee shall not misrepresent the type of license under which that licensee is transacting insurance, nor shall that licensee engage in transactions not authorized by the licenses held by that licensee. (Amended by Stats. 2021, Ch. 133, Sec. 20. (SB 272) Effective July 23, 2021.)
  192. 1730.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    Certain insurance agents must tell insureds or applicants the coverage effective date, or explain when coverage will take effect, at application or when premium money is received.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1730.5. A life agent, a property broker-agent, and a casualty broker-agent shall provide to all insureds or applicants at the time of application or receipt of premium moneys the effective date of coverage, if known, or the circumstances under which coverage will be effective if there exists conditions precedent to coverage. This section shall apply only to coverage for personal lines of insurance, such as private passenger automobile, homeowner and renter insurance, personal liability, and individual disability and health insurance. (Amended by Stats. 2011, Ch. 411, Sec. 31. (AB 1416) Effective January 1, 2012.)
  193. 1730.6.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    Property and casualty broker-agents must tell applicants or prospective insureds about available premium financing or premium payment options before arranging them.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1730.6. (a) Every property broker-agent and every casualty broker-agent shall, prior to arranging premium financing or transacting any agreement for the periodic payment of premium for any new or renewal policy of insurance specified in Section 660, disclose to any applicant or prospective insured any options for premium financing or the periodic payment of premium from the insurer or, if applicable, the California Automobile Assigned Risk Plan, that are available for the insurance being purchased. This disclosure may be in the form of a written document. In the event the applicant or prospective insured elects to enter into an agreement for premium financing, the property broker-agent and casualty broker-agent shall comply with the requirements of Section 778.4. (b) For purposes of this section and Section 778.4: (1) “Periodic payment of premium” means the payment plan provided by the California Automobile Assigned Risk Plan, or a payment plan provided by the insurer that allows the total premium to be paid in more than one installment. (2) “Arrange premium financing” means assisting an applicant or prospective insured to arrange for payment of the premium through a premium finance agreement as defined in Section 778.1. (Amended by Stats. 2011, Ch. 411, Sec. 32. (AB 1416) Effective January 1, 2012.)
  194. 1731.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    A licensed broker-agent is deemed to be acting as an insurance agent for insurance placed with insurers that have a filed and currently effective notice of appointment.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1731. A person licensed as a broker-agent shall be deemed to be acting as an insurance agent in the transaction of insurance placed with those insurers for whom a notice of appointment has been filed with the Insurance Commissioner in accordance with Section 1704 and is then in force. (Amended by Stats. 1990, Ch. 1420, Sec. 56.5. Operative January 1, 1992, by Sec. 77 of Ch. 1420.)
  195. 1732.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    An insurance broker may, for an insurance company, collect and transmit premiums or return premiums and deliver insurance policies and related documents.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1732. A person acting as an insurance broker may, on behalf of an insurance company, collect and transmit premium or return premium and deliver policies and other documents evidencing insurance. Performance of those functions shall not be construed for any purpose to mean that the person is an insurance agent. (Amended by Stats. 2008, Ch. 304, Sec. 3. Effective January 1, 2009.)
  196. 1733.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    Licensees who receive premium or return-premium money must treat it as fiduciary funds, and diverting those funds for personal use is theft.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1733. All funds received by any person acting as a licensee under this chapter, Chapter 5A (commencing with Section 1759), Chapter 6 (commencing with Section 1760), or Chapter 7 (commencing with Section 1800), as premium or return premium on or under any policy of insurance or undertaking of bail, are received and held by that person in that person’s fiduciary capacity. A person who diverts or appropriates those fiduciary funds to that person’s own use is guilty of theft and punishable for theft as provided by law. Any premium that a premium financer agrees to advance pursuant to the terms of a premium finance agreement shall constitute fiduciary funds as defined in this section only if actually received by a person licensed in one or more of the capacities herein specified. (Amended by Stats. 2021, Ch. 133, Sec. 21. (SB 272) Effective July 23, 2021.)
  197. 1734.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    A licensed person who receives fiduciary funds must handle them in one of the specified ways, including remitting them, keeping them in a qualifying trust account, or maintaining them under Section 1734.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1734. This section applies to a person licensed, hereinafter “licensee,” whether under a permanent license, restricted license, temporary license, or certificate of convenience, to act in any of the capacities specified in Section 1733. If fiduciary funds, as defined in Section 1733, are received by the licensee, the licensee shall do one of the following: (a) Remit premiums, less commissions, and return premiums received or held by the licensee to the insurer or the person entitled thereto. (b) Maintain those fiduciary funds at all times in a trust account in a bank or savings and loan association, within any state of the United States, which account is insured by the Federal Deposit Insurance Corporation (FDIC), and is licensed by any state government within the United States or by the United States government, separate from any other account, in an amount at least equal to the premiums and return premiums, net of commissions, received by the licensee and unpaid to the persons entitled thereto or, at their direction or pursuant to written contract, for the account of those persons. However, that person may commingle with those fiduciary funds in the account those additional funds as the licensee may deem prudent for the purpose of advancing premiums, establishing reserves for the paying of return commissions, or for those contingencies as may arise in the licensee’s business of receiving and transmitting premium or return premium funds. (c) Maintain those fiduciary funds pursuant to Section 1734.5. (Amended by Stats. 2021, Ch. 133, Sec. 22. (SB 272) Effective July 23, 2021.)
  198. 1734.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    Licensees who receive fiduciary funds must keep them in approved investments or a qualifying trust account and meet related conditions.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1734.5. (a) (1) If fiduciary funds, as defined in Section 1733, are received by any person licensed, hereinafter the “licensee,” whether under a permanent license, restricted license, temporary license, or certificate of convenience, to act in any of the capacities specified in Section 1733, and the funds are not remitted, or maintained pursuant to subdivisions (a) and (b) of Section 1734, except as provided in subdivision (f), the funds shall be maintained in any of the following: (A) United States government bonds and treasury certificates or other obligations for which the full faith and credit of the United States are pledged for payment of principal and interest. (B) Certificates of deposit of banks or savings and loan associations, which are insured by the Federal Deposit Insurance Corporation (FDIC) and licensed by any state government within the United States or by the United States government. (C) Repurchase agreements collateralized by securities issued by the United States government. (D) Either of the following: (i) Bonds and other obligations of this state or of any local agency or district of the State of California having the power, without limit as to rate or amount, to levy taxes or assessments upon all property within its boundaries subject to taxation or assessment by the local agency or district to pay the principal and interest of the obligations. (ii) Revenue bonds and other obligations payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by this state, or a local agency or district, or by a department, board, agency, or authority thereof. (2) The bonds and obligations described in subparagraph (D) of paragraph (1) shall either have maturities of not more than one year or afford the holder of the obligation the unilateral right to redeem the obligation from its issuer within one year from date of purchase at an amount equal to, or greater than, its par value, and the bonds and obligations shall be required to be rated at least Aa1, MIG-1/VMIG-1, or Prime-1 by Moody’s Investor Service, Inc., or AA, SP-1, or A-1 by Standard and Poor’s Corporation. (3) For the fiduciary funds maintained as provided in paragraph (1), the bonds, certificates, obligations, certificates of deposit, and repurchase agreements shall be valued on the basis of their acquisition cost. (b) As a condition to maintaining the fiduciary funds pursuant to this section, a written agreement shall be obtained from each and every insurer or person entitled thereto authorizing the maintenance and the retention of any earnings accruing on the funds. (c) Except as provided in subdivision (f), evidence of the funds shall be maintained at all times in a trust account in a bank or savings and loan association within any state of the United States, which account is insured by the FDIC and which institution is licensed by any state government within the United States or by the United States government, separate from any other funds, in an amount at least equal to the premiums and return premiums, net of commissions received by the licensee and unpaid to the persons entitled thereto, or, at their discretion or pursuant to a written contract, for the account of these persons. However, the person may commingle with the fiduciary funds any additional funds as the licensee may deem prudent for the purpose of advancing premiums, establishing reserves for the paying of return premiums, or for any contingencies that may arise in the business of receiving and transmitting premium or return premium funds by the licensee. (d) All administrative actions involving trust accounts shall be subject to the jurisdiction of the commissioner. All suits involving trust accounts shall be subject to the jurisdiction of the courts of the State of California and the federal courts located within the State of California. (1) Any licensee specified in Section 1733 utilizing a trust account located outside of the State of California shall be required to file and maintain in the commissioner’s office, as a condition of maintaining a license, a written designation identifying the agent for service of process in this state for the bank or savings and loan association located outside the State of California being utilized by the licensee. The designated agent shall be a person residing in this state. The writing shall state the name of the agent and the agent’s place of business in this state with sufficient particularity so that the agent can readily be found by peace officers or process servers. Appointment of an agent reasonably available for service of papers, notice, proof of loss, summons, or other process during business hours shall be continuously maintained by every licensee subject to this article while the licensee holds a valid and unrevoked license. (2) The commissioner shall not have jurisdiction over any disputes arising between parties concerning the maintenance of fiduciary funds pursuant to this section. However, this subdivision shall not otherwise affect the authority granted to the commissioner over fiduciary funds by other provisions of this code, or regulations adopted pursuant thereto. As used in this subdivision, “parties” shall not include the commissioner. (e) Investment losses to the principal of fiduciary funds maintained pursuant to this section are the responsibility of the person licensed, whether under a permanent license, restricted license, temporary license, or certificate of convenience, to act in any of the capacities specified in Section 1733, and any obligation to insurers or other persons entitled to the fiduciary funds shall in no way be diminished due to any loss in the value to the principal of the fiduciary funds held pursuant to this section. (f) Any fiduciary funds, as defined in Section 1733, received as cash, lawful money of the United States, or freely tradeable currency of any foreign government, by any person licensed, whether under a permanent license, restricted license, temporary license, or certificate of convenience, to act in any of the capacities specified in Section 1733, shall comply with Section 1734, but shall initially be maintained in a trust account in a bank or savings and loan association in California, licensed by the State of California or the United States government and insured by the FDIC. (Amended by Stats. 2021, Ch. 133, Sec. 23. (SB 272) Effective July 23, 2021.)
  199. 1735.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    This section defines when a person is a managing general agent and requires a managing general agent to comply with Section 1734 for principals whose fiduciary funds are held.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1735. (a) As used in this section, a managing general agent is a licensed property broker-agent and casualty broker-agent, or a life agent to whom all of the following apply: (1) Has a written management contract and an appointment on file with the commissioner in accordance with Section 1704, which appointment is then in force, with one or more admitted insurers covering business transacted by the insurer in a substantial portion of the State of California. (2) Under the contract specified in paragraph (1), manages the transaction of either all or one or more of the classes of insurance written by those insurers in that territory or the transactions therein by those insurers under a specified fictitious underwriter’s name. (3) Has the power to appoint, supervise, and terminate the appointment of local agents in that territory. (4) Has the power to accept or decline risks. (5) Collects premium moneys from producing broker-agents and remits those moneys to those insurers pursuant to the account current system. (b) The managing general agent shall, with respect to any principals for whom fiduciary funds are held, comply with Section 1734. (Amended by Stats. 2011, Ch. 411, Sec. 33. (AB 1416) Effective January 1, 2012.)
  200. 1735.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. )

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    A licensee may offset return premiums owed to an insured against unpaid premiums owed by that insured, and insurers may pay return premiums to certain broker-agents for that purpose.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 5. Production Agencies [1621 - 1758.993] ( Chapter 5 repealed and added by Stats. 1959, Ch. 4. ) ## ARTICLE 12. Conduct of Licensee [1724 - 1736.5] ( Article 12 added by Stats. 1959, Ch. 4. ) ## 1735.5. A property broker-agent, casualty broker-agent, or surplus line broker, hereinafter the “licensee,” may offset funds due an insured for return premiums on any policy against amounts due the licensee from the same insured for unpaid premiums on the same or any other policy. Any insurer may pay return premiums to any property broker-agent or any casualty broker-agent for that purpose. This section shall not invalidate an assignment of return premium made concurrently with policy issuance as security for financing that premium, nor the right of the assignee, or the assignee’s assign, to enforce the assignment as a prior claim. (Amended by Stats. 2021, Ch. 133, Sec. 24. (SB 272) Effective July 23, 2021.)

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