California Insurance Licenses

If you’re an insurance agent facing criminal charges, beware: in addition to your physical freedom, your professional license is also at risk. An applicant or licensed California insurance agent has a duty, under Insurance Code Section 1729.2, to notify the commissioner when his or her “background information” changes. This includes not only misdemeanor and felony convictions, but also the filing of criminal charges, which triggers the notification requirement under section 1729.2(c)(2).

California Insurance Code Section 1748.5 gives the commissioner the power to bring your business as an agent or producer to a screeching halt for engaging in “misconduct,” but you still have rights. You have the right to notice and a hearing in most instances and in others your insurance privileges will be immediately yanked. In certain cases, you must request a hearing from the commissioner within a limited period of time, or you may have the option of transferring jurisdiction to the Superior Court. Alternatively, the commissioner may allow you to pay a monetary fine in lieu of license suspension and/or you may be asked to reprove your industry qualifications.

Needless to say, an insurance agent or producer with criminal charges pending has a tangled web to navigate which, if not done properly, may lead to revocation of your license, fines up to $50,000, and loss of professional reputation. At Spiga & Associates, we recognize how important your insurance license is and we are here to fight for your rights both in court and in front of the insurance commissioner.