The following notices were issued by the California Department of Insurance's Licensing Services Division. The notices are listed by month and year. Each subject title contains a link to the notices. These notices are available in Adobe's Portable Document Format (PDF). To view these pdf forms on your browser you must have Adobe Acrobat Reader 3.0 or higher on your computer. A free copy of the Adobe Acrobat Reader can be downloaded from the Adobe website. Additionally, new notices may be added periodically, so keep checking back. Links are also provided to any available websites containing more detailed information related to the notice.
Note: If you are looking for Bulletins and Public Notices that were issued by a CDI entity other than the Licensing Services Division, please visit the following link: Bulletins and Notices
2008
New Law Regulating Use of Senior Designations
Title Insurance Marketing Representatives
Updated Prelicensing Educational Objectives
New Insurance Adjuster Licensing Laws To Take Effect on January 1, 2009
New Licensing Laws To Take Effect on January 1, 2009
Guidelines for Waiver of Penalty for Non-Use of Electronic Fund Transfer (EFT) and for Non-Timely Payment of Taxes
New Surplus Line Broker License Fees
Los Angeles and San Diego Examination Sites - Saturday Examinations
New Limited Lines Automobile Insurance Agent Requirements
New Life Agent License Requirements
Fingerprint Fee Reduction - Title 18 U.S.C. Section 1033 Applicants for Written Consent
Fingerprint Fee Reduction - California Resident and Non-Resident Insurance Producers
New Surplus Line Broker License Requirement Notice
Electronic Filing Requirements - Insurance Company Appointments and Terminations
New Online Service for Insurance Agencies
Life - Limited to the Payment of Funeral and Burial Expenses License (Previously Known as the Life - Limited to PreNeed License)
Flood Insurance Training Requirements for Fire/Casualty Broker-Agents and Personal Lines Broker-Agents Selling through the National Flood Insurance Program (NFIP)
Online Prelicensing Courses and Prelicensing Certificates of Completion
Ethics Continuing Education Requirement
Fingerprint Fee Reduction
AB 729 - New Financial Security Requirements
BEWARE!!! Cheating is a Crime
SB 518 - New Adjuster Requirements
New Law Requiring Prompt Reply to Insurance Commissioner's Inquiries
Unlawful Sales Practices Pertaining to Medicare Part D and Annuities for Seniors
Fingerprint Fee Increase & NAIC's Central Repository for Digital Fingerprints
Surplus Lines Export List
License - Self-Storage Insurance License
Licensee - New Background Information Reporting Requirements
Public Adjusters - Legislative Changes
Surplus Lines Disclosure Form
Bail Services
Solicitation of Bail Services
New Option for Obtaining Fingerprint Impressions
Broker Fiduciary Duties Regulations
Producer Licensing Services in Sacramento
Life Agent Annuity Training Requirement
Producer Licensing Services in San Francisco
Producer Licensing Services in Los Angeles
California Department of Insurance Schedule of Fees and Charges (Bulletin 2003-4)
Privacy Policy Notice
December 2008 Notices New Law Regulating Use of Senior Designations On September 26, 2008, Assembly Bill 2150 (Berg, Chapter 327, Statutes of 2008) was signed into law and will take effect on January 1, 2009. This new law, which adds Section 787.1 to the California Insurance Code (CIC), prohibits insurance agents and brokers from using a "senior designation" unless the designation has been approved by the California Department of Insurance (CDI).
November 2008 Notices
Title Insurance Marketing Representatives Section 12404 of the CIC was amended to specify those unlawful activities that are considered to be inducements to any person for the placement or referral of title insurance business. Section 12418 et. seq. of the CIC was added to establish a certificate of registration requirement for those individuals who market, offer, solicit, negotiate, or sell title insurance.
Updated Prelicensing Educational Objectives Because of many changes to the California Insurance Code, changes to federal laws and current industry trends, the educational objectives for several license types were recently revised. The license types affected consist of the Life-Only Agent, Accident and Health Agent, Fire and Casualty Broker-Agent, Personal Lines Broker-Agent, Limited Lines Automobile Insurance Agent, and the Commercial, Health and Disability (upgrade).
New Insurance Adjuster Licensing Laws To Take Effect on January 1, 2009On January 1, 2009 changes to both the independent and public insurance adjuster licensing laws will take effect as a result of the passage of Assembly Bill 2044 (Duvall, Chapter 300, Statutes of 2008). There were several changes resulting from this bill, including many changes for the purpose of allowing California's independent adjuster and public adjuster licensing laws to be uniform with other states. Listed below are the independent adjuster and public insurance adjuster changes that will take effect.
New Licensing Laws To Take Effect on January 1, 2009 On January 1, 2009 changes to California's producer licensing laws will take effect as a result of the passage of Assembly Bill 2044 (Duvall, Chapter 300, Statutes of 2008). There were several changes resulting from this bill, most for the purpose of allowing California's producer licensing laws to be uniform with other states.
October 2008 Notices
Guidelines for Waiver of Penalty for Non-Use of Electronic Fund Transfer (EFT) and for Non-Timely Payment of Taxes Pursuant to California Insurance Code (CIC) Sections 1775.8(c)(1) and 12976.5(c)(1), any surplus line broker or insurer required to remit taxes by EFT who remits those taxes by means other that an approved EFT method shall be assessed a penalty in an amount equal to 10 percent of the taxes due at the time of the payment. Pursuant to CIC Sections 1775.4(e) and 1775.5(b), a penalty of 10 percent of the amount of the payment due shall be levied upon and paid by any surplus line broker who fails to make the necessary payment within the time required. These regulations define and make clear under what situations the surplus line broker or insurer may be relieved of the penalty.
June 2008 Notices
AB 1699 (Duvall) New Surplus Line Broker License Fees On June 13, 2008, AB 1699 (Duvall, Chapter 29, Statutes of 2008) immediately became law as an urgency bill. This new law amends the California Insurance Code to make additional changes to the surplus line brokers and special lines' surplus line brokers licensing requirements and fees.
March 2008 Notices
Los Angeles and San Diego Examination Sites - Saturday Examinations The California Department of Insurance (CDI) is currently experiencing a significant increase in the number of applicants requesting examinations dates at both the Los Angeles and San Diego examination sites. To alleviate the Los Angeles and San Diego examination site scheduling delays, the CDI will be offering Saturday examinations for a limited time.
New Limited Lines Automobile Insurance Agent Requirements Assembly Bill 797 (Coto, Chapter 271, Statutes of 2007) was signed into law and will take effect on January 1, 2008. This legislation creates a Limited Lines Automobile Insurance Agent license and establishes the prelicensing and continuing education requirements for this new license.
New Life Agent License Requirements Assembly Bill 720 (De Leon, Chapter 270, Statutes of 2007) was signed into law and will take effect on January 1, 2008. This legislation makes significant changes to the life agent license qualifications, including changes to the prelicensing and continuing education (CE) requirements contained in Section 1749 et seq. of the California Insurance Code (CIC). Specifically, California's life agent licensing laws will be changed to establish two new insurance agent license types, a life-only agent license and an accident and health agent license. These two new license types will affect both individual and organization licenses and applicants. This Notice provides prelicensing and continuing education requirements for the two new license types.
Fingerprint Fee Reduction - Title 18 U.S.C. Section 1033 Applicants for Written Consent All 1033 Applicants for Written Consent are required to submit fingerprint impressions to the California Department of Justice (DOJ) and the Federal Bureau of Investigations (FBI) for completion of a background check before the California Department of Insurance (CDI) can complete processing their application. Effective October 1, 2007, the FBI's share of the fingerprint processing fee will be reduced from $24 to $19. The total fee for obtaining fingerprint impressions is calculated as follows: FBI processing fee of $19, DOJ processing fee of $32, and an additional "rolling fee" charged by the DOJ authorized vendor. The additional "rolling fee" will vary depending on the vendor and is noted on DOJ's listing of authorized Live Scan Fingerprint vendors. Applicants are encouraged to contact the Live Scan vendor in advance to verify their current operating hours, location, fees, and their acceptable method of payment (i.e. credit card, cash, ATM).
Fingerprint Fee Reduction - California Resident and Non-Resident Insurance Producer Effective October 1, 2007, the FBI's share of the fingerprint processing fee will be reduced from $24 to $19 for California insurance producer license applicants. All California resident and non-resident insurance producer applicants are required to submit fingerprint impressions to the California Department of Justice (DOJ) and the Federal Bureau of Investigations (FBI) for completion of a background check before the California Department of Insurance (CDI) can complete processing their application. The total fee for obtaining fingerprint impressions is calculated as follows: FBI processing fee of $19, DOJ processing fee of $32, and an additional "rolling fee" charged by the DOJ authorized vendor. The additional "rolling fee" will vary depending on the vendor and is noted on DOJ's listing of authorized Live Scan Fingerprint vendors. License applicants are encouraged to contact the Live Scan vendor in advance to verify their current operating hours, location, fees, and their acceptable method of payment (i.e. credit card, cash, ATM).
New Surplus Line Broker License Requirement Notice. This notice was sent to all Surplus Line Brokers and Fire and Casualty Broker-Agents Currently Transacting on Behalf of Surplus Line Broker Organizations. On January 1, 2008 California's surplus line broker licensing requirements and fees will change for the purpose of streamlining the licensing process and to become more uniform and reciprocal with other states in regards to resident and non-resident licensing of surplus line brokers.
Electronic Filing Requirements - Insurance Company Appointments and Terminations This notice was sent out to all admitted insurers and other interested parties. The State Office of Administrative Law approved new regulations requiring insurance companies to submit their notices of appointments and terminations to the California Department of Insurance (CDI) electronically. Article 12 was added to Title 10, Chapter 5, Subchapter 1 of the California Code of Regulations (CCR). The requirement goes into effect on February 11, 2007. The license lines of insurance affected by these regulations include: Life, Fire and Casualty, and Personal Lines. Other lines included are: Travel Agent, Part Time Fraternal Agents, Disability Only, and Home Protections. See notice for information on who to contact to submit appointments and terminations electronically and exceptions to the electronic submission requirements.
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New Online Service for Insurance Agencies This notice was sent to California licensed insurance agencies and other interested parties. The CDI is now offering a new Business Entity Endorsement and Termination Online Service that enables insurance agencies (a.k.a. business entities) to endorse and/or terminate agents through the internet. This new service reduces the timeline for processing an endorsement or termination by several weeks. It provides for real-time entry of an endorsement or termination. Additionally, the new service will validate the agent information to ensure that the agent is eligible to be endorsed to the business entity license before sending the information. To begin using this new online service, please click on the following link: Business Entity Endorsement and Termination Online Service
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Life - Limited to the Payment of Funeral and Burial Expenses License (Previously Known as the Life - Limited to PreNeed License) Effective January 1, 2007, the California Insurance Code (CIC) was amended by adding Section 1676 (j). Section 1676(j) states that an applicant for a life agent license that is limited by the terms of a written agreement with an insurer to transact only specific life insurance policies or annuities having an initial face amount of fifteen thousand dollars ($15,000) or less that are designated for the payment of funeral and burial expenses, shall not be required to take the full life agent examination to obtain a license. Applicants for the limited life license shall be required to pass an examination developed to test their knowledge of topics relevant to the type of policies that they are restricted to sell. The California Department of Insurance (CDI) has available on its website the Examination Objectives for this limited life license. The Objectives provide applicants with an outline of items to study prior to taking the examination. Click on the following link to review these Objectives: Life- Limited to the Payment of Funeral and Burial Expenses Examination Objectives Back to Top
Flood Insurance Training Requirements for Fire/Casualty Broker-Agents and Personal Lines Broker-Agents Selling through the National Flood Insurance Program (NFIP) Section 207 of the Flood Insurance Reform Act of 2004 requires all producers selling flood insurance policies under the National Flood Insurance Program (NFIP) to be properly trained and educated about the NFIP to ensure producers may best serve their clients. An insurance producer who sells flood insurance may satisfy the minimum training and education requirements by completing a course related to the NFIP, which may be approved for three hours of continuing education credit by the California Department of Insurance (CDI). The failure to comply with this continuing education requirement may jeopardize the producer's authority to write insurance through the NFIP. Additional information regarding the new requirements is contained in the public notice. The flood training courses are available on the CDI's Education Provider and Course Listing Web page. To review these courses, click on Education Provider and Course Search and fill-in the requested information. The flood training courses are listed in the "Flood" category type and will appear on your screen.
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December 2006 Notice Online Prelicensing Courses and Prelicensing Certificates of Completion This notice was sent to all education providers and other interested persons. Assembly Bill 2387 (Vargas, Chapter 590, Statutes of 2006) was signed into law on September 28, 2006 and will take effect on January 1, 2007. This law amends Section 1749 of the California Insurance Code to remove the word "classroom" from the prelicensing requirement and will add Section 1749 (g) to ensure that safeguards are in place to maintain the integrity of prelicensing education. As a result of this change, prelicensing education providers approved by the California Department of Insurance (CDI) can now submit online prelicensing education courses to the Commissioner for approval. Assembly Bill 2387 also added Section 1749 (h) which will become effective on January 1, 2007. This section states that all prelicensing certificates of completion will now expire three years after the completion of the prelicensing course, whether or not a license is issued to the student.
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Ethics Continuing Education Requirement The purpose of this notice is to inform resident insurance agents and brokers of a new continuing education requirement. Specifically, Section 2188.6 (h), (i), and (j) of the California Code of Regulations was amended effective June 24, 2006 to require Fire and Casualty broker-agents and Life agents to complete four hours of ethics continuing education every license term; and, to require Personal Lines broker-agents to complete two hours of ethics continuing education every license term. The ethics continuing education will be required for agents and brokers whose license term expires on or after January 31, 2007.
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Fingerprint Fee Reduction This notice was sent to all admitted insurers, education providers and all other interested parties. Effective June 12, 2006, the California Department of Insurance (CDI) reduced its fingerprint processing fee from $76 to $65.95. This 13 percent fee reduction represents a significant savings to insurers, license applicants and all other persons who are required to submit fingerprint impressions to the CDI. Back to Top
AB 729 - New Financial Security Requirements This notice is directed to all admitted insurers and other interested parties. Assembly Bill 729 (Koretz, Chapter 312, Statutes of 2005) was signed into law on September 22, 2005. Effective January 1, 2006, the bill requires limited liability companies (LLC's) to provide proof of satisfying the security requirements of Section 1647.5 of the California Insurance Code when applying for an insurance license and once licensed, must also file with the Commissioner an annual confirmation of coverage demonstrating continued compliance with the financial security requirements. Additional information regarding the new requirements is contained in the public notice.
For additional LLC application filing information, annual certification of coverage information, and links to forms that can be used as proof of fulfilling the security requirements please go to the following link: Business Entity Limited Liability Company Requirements
BEWARE!!! Cheating is a Crime This notice is directed to all admitted insurers and other interested parties. Assembly Bill 729 (Koretz, Chapter 312, Statutes of 2005) was signed into law on September 22, 2005. Effective January 1, 2006, this bill also states that license applicants who willfully cheat or subvert a license examination will be in violation of the law as per Section 1681.5 of the California Insurance Code and are punishable by a fine not to exceed $10,000 or imprisonment not to exceed one year.
For further information on this new law and offenses that constitute cheating on license examinations please click on the following link: New Law - BEWARE!! Cheating is a Crime
SB 518 - New Adjuster Requirements This notice is directed to all Public Insurance Adjusters and other interested parties. Senate Bill 518 (Kehoe), Chapter 448, Statutes of 2005, makes the following changes affecting public and interim insurance adjusters effective January 1, 2006: Increases the current surety bond required in CIC section 15033 from $5,000 to $20,000; increases the sum of the current deposit which can be filed in lieu of the surety bond required in CIC section 15036 from $5,000 to $20,000; reduces length of time in which an expired license or branch office certificate can be renewed from five (5) years to one (1) year; requires that every contract between the public adjuster and the insured contain certain new elements and cannot contain certain provisions currently allowed (see notice for attachments containing details of the new elements and provisions); and requires that before the contract is signed by the insured, the public adjuster must provide the insured a separate disclosure document that contains the name and license number of the public adjusters.
New Law Requiring Prompt Reply to Insurance Commissioner's Inquiries This notice is directed to all admitted insurers, insurance producers, and other interested parties. Assembly Bill 729 (Koretz), Chapter 312, Statutes of 2005, adds Section 1736.5 to the California Insurance Code effective January 1, 2006. Section 1736.5 authorizes the insurance commissioner to impose discipline against insurance producer licensees and applicants who fail to promptly reply to inquiries from the commissioner relating to any of the following matters: An application for, or the retention or renewal of a license; an investigation relating to a consumer complaint; or a matter relating to a producer licensing background change reporting requirement. Back to Top
Unlawful Sales Practices Pertaining to Medicare Part D and Annuities for Seniors The purpose of this notice is to make life insurers and life agents aware of specific communications with the Center for Medicare & Medicaid Services (CMS) and the National Association of Insurance Commissioners (NAIC) with regard to: (A) allegations of unfair sales practices regarding the sale of Medicare Part D, and reinforce the application of state laws to marketing and sales practices involving Part D benefits; (B) address the provisions of the Insurance Information and Privacy Protection Act of the California Insurance Code, as they relate to the use of pretext interviews by insurers, producers and insurance-support organizations; and (C) inform insurers and agents regarding the use of marketing practices that are in violation of the Insurance Code and to address the responsibilities of both insurers and producers in assuring that the described or similar marketing practices are not used in the solicitation and sale of insurance in California.
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Fingerprint Fee Increase and NAIC's Central Repository for Digital Fingerprints This notice was sent to all admitted insurers and all other interested parties. Effective May 1, 2005, Identix Identification Services (IIS) increased its fee from $74 to $76 for all California Department of Insurance (CDI) applicants. Back to Top
Export List Notice (Pursuant to Insurance Code Section 1763.1) This notice was sent to all surplus lines brokers, admitted insurers, and other interested parties. It provides information regarding an export list of risks and coverages eligible for placement with a nonadmitted insurer and exempt from all the requirements of Section 1763.
For a copy of the 2005 Export List, please click on the following link: EXPORT LIST
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Self-Service Storage Insurance License (AB 2520) This notice was sent to all admitted insurers and other interested parties. Individuals selling self-service storage insurance must be licensed with with either a Fire and Casualty Broker-Agent license or a self-storage license.
For further information on this notice, please click on the following link: Self-Storage Insurance License
New Background Information Reporting Requirements (AB 2557) This notice was sent to all admitted insurers and other interested parties. This law requires the applicant or licensee to report to the CDI within 30 days any changes to their background pertaining to law enforcement issues, bankruptcy, administrative actions, fiduciary issues, etc.
For further information on this notice, please click on the following link: Background Information Reporting Requirements (AB 2557)
Legislative Changes Affecting Public Adjusters (AB 1953) This notice was sent to all public adjusters. Public adjusters will be required to comply with new legislation that will provide protection for the consumer, and to cause those in this vocation to conduct business in a matter consistent with others in this industry. The Notice outline the penalties and fines for non-compliance.
Surplus Line Brokers Disclosure Form (AB 2490) This notice was sent to all surplus lines brokers and other interested parties. This amendment allows a homeowner's contract to be binding immediately when written in the surplus lines market with out a signature when the applicant is unable to meet with the broker. The broker must receive a signed disclosure within five days.
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Bail Services (SB 761) This notice was sent to all bail permitted, bail agents, bail solicitors and other interested parties. The undertaking of bail must be the name approved by the Commissioner and include the license number and other pertinent information of the owners.
Solicitation of Bail Services (AB 1694) This notice was sent to all bail permittees, bail agents, bail solicitors and other interested parties. It is now a crime for a bail agent to contract an incarcerated person for the purpose of soliciting bail on behalf to the licensee.
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California Resident Insurance Producer Applicants New Option for Obtaining Fingerprint Impressions. This notice was sent to all admitted insurers and other interested parties.CDI is changing the fingerprinting process so that the fingerprint impressions can be submitted at anytime prior to taking the license examination and even before submitting the license application.
For further information on this new option, please click on the following link: California Resident Licensing Fingerprint Requirements.
Broker Fiduciary Duties Regulation The Commissioner proposes to adopt a regulation regarding the fiduciary duties owed to a client by insurance salespeople who represent consumers ("brokers"). Specifically, the regulation requires brokers to disclose income they receive in handling a transaction for a client. The regulation also makes it an unfair act for a broker to fail to inform a client about a "best available insurer" or to steer a client away from that insurer.
For further information on this regulation, please click on the following links: Proposed Text of the Regulations and the Initial Statement of Reasons
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Producer Licensing Services in Sacramento This notice was sent to all admitted insurers and other interested parties. Beginning August 16, 2004, CDI will no longer offer Producer Licensing Services at the public counter in Sacramento. This notice describes the licensing services that are provided online at the CDI Web site at www.insurance.ca.gov or at the Producer Licensing Toll-Free number at (800) 967-9331.
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Life Agents Annuity Training Requirement (SB 620) This notice was sent to all admitted insurers and other interested parties.This law requires that life agents who sell annuity products must satisfactorily complete 8 hours of training prior to soliciting individual consumers in order to sell annuities.
For further information on this notice, please click on the following link: California Annuity Training Questions and Answers
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Producer Licensing Services in San Francisco This notice was sent to all admitted insurers and other interested parties. Beginning November 1, 2003, CDI will no longer offer Producer Licensing Services at the public counter in San Francisco. This notice describes the licensing services that are provided online at the CDI Web site at www.insurance.ca.gov or at the Producer Licensing Toll-Free number at (800) 967-9331.
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Producer Licensing Services in Los Angeles This notice was sent to all admitted insurers and other interested parties. Beginning August 1, 2003, CDI will no longer offer Producer Licensing Services at the public counter in San Francisco. This notice describes the licensing services that are provided online at the CDI Web site at www.insurance.ca.gov or at the Producer Licensing Toll-Free number at (800) 967-9331.
California Department of Insurance Schedule of Fees and Charges (Bulletin 2003-4) This bulletin was sent to all admitted insurers and other interested parties. Effective January 1, 2004, CDI increased the fee schedule by 10 percent (10%). The bulletin describes efforts made to reduce expenditures and program cuts and the new online services that will be funded with the additional revenues.
To view the revised fee schedule go to the following link: 2004 CDI Schedule of Fees & Charges
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Notice of Privacy Regulations This notice was sent to remind all insurance institutions, agents, and insurance support organizations ("licensees") subject to the provisions of the California Insurance Information and Privacy Protection Act (California Insurance Code Sections 791 - 791.27) and the privacy provisions of the Federal Gramm-Leach-Bliley Financial Services Modernization Act that California's regulations governing the Privacy of Nonpublic Personal Information took effect on March 24, 2003.
For further information on these regulations, please click on the following link: Text of the Regulations
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If you have any questions about any license information you retrieved, please see the most commonly asked questions in our License Questions and Answers section. If you need further assistance, please call CDI's Producer Licensing Bureau at (800) 967-9331 or (916) 322-3555, or send an e-mail to the Producer Licensing Bureau. Please be sure to include your name, telephone number, license number and e-mail address in all correspondence with the Department.
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