New California Licensing Laws Take Effect

The California Department of Insurance is reminding producers of new licensing laws that took effect Jan. 1, 2009, as a result of the passage of Assembly Bill 2044. Several changes resulted from the bill, including many that were designed to make California’s independent adjuster and public adjuster licensing laws uniform with other states, CDI indicated. Following are the changes:

• Continuing Education Requirement: The number of continuing education hours required for public and independent insurance adjusters was amended to 24 hours during a two-year license term.
• Examination Waiver: Agents licensed in another state that are in good standing and move to California can waive the examination requirement as a condition to obtaining a California license.

However, agents and brokers licensed as non-residents who move to California must still comply with the 12-hour ethics and California Insurance Code course before the license can be issued. The agent must apply for the resident license within 90 days of canceling their license in the previous home state.

• Personal Lines Broker-Agents: The dates the initial licenses for personal lines broker-agents are effective so that renewals are staggered throughout the year, rather than all being due at the same time at the beginning of every odd year. If a personal lines broker-agents also holds an additional license qualification such as life or accident or health, the personal lines broker-agent’s renewal date will be changed so that the licensees will only have one renewal date.
• Non-Resident Licensing Fees: The licensing fee for non-resident agents will be the same as the fee to become licensed as a resident producer when applying for the same type of license, regardless of the state the individual holds a resident license.
• Other Independent Adjuster Changes: The California Insurance Code was amended to reduce the grace period in which an expired independent adjuster license or branch certificate may be renewed from five years to one year.

And, the Code was amended to clarify non-resident licensing requirements for independent insurance adjusters by deleting “in this state” so that the active direction, control, charge or management of the independent insurance adjuster business may occur outside of California.

For information, visit http://ca.gov/index.asp.