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1 Page 1 of 6 CALIFORNIA Producer Licensing Bureau 320 Capitol Mall; Sacramento, CA Mailing Address for Fees for Resident documents: P.O. Box 1139; Sacramento Mailing address for Fees and Non-Resident Applications: P.O. Box 1437; Sacramento Telephone, Commissioner: ; Fax: Telephone, Licensing: WATS: M-F 7:00am-5:30pm Other Offices: 300 S. Spring St., 9th Fl.; Los Angeles Califiornia Fremont St., 24th Fl.; San Francisco 94105; [email protected] I.Licensing Requirements: Sales Personnel Casualty Broker-Agents, Property Broker-Agents, Personal Lines Broker-Agents, Bail Agents, Bail Permittees, Bail Solicitors, Cargo Shippers Agents, Fraternal Agents, Motor Club Agents, Life-Only Agents, Accident and Health Agents, MGAs, Rental Car Agents, Stock Agents, Limited Lines Travel Insurance Agents, Credit Agents, Portable Electronics Insurance Agent. Other Insurance Professionals Adjusters, Registered Administrators, Life and Disability Insurance Analysts, Public Adjusters, Interim Public Adjusters, Reinsurance Intermediaries, Surplus Lines Brokers, Special Lines Surplus Lines Broker, Limited Lines Automobile Insurance Agents. A.Applicability: A person shall not solicit, negotiate, or effect contracts of insurance, unless the person holds a valid license from the commissioner authorizing the person to act in that capacity. (Cal. Ins. Code 1631). B.Licenses Required of Residents: Each of the following must be licensed in California. All licenses are biennial, expiring according to year-round expiration provisions, except as otherwise noted. (Cal. Ins. Code 1630). Effective January 1, 2010, most individual and business entity insurance producers and applicants must submit their filings to the CDI electronically. Specifically, this requirement applies to individuals renewing or applying for licenses. Individuals may, for good cause shown, request an exemption to the electronic filing requirements. Such requests may be made by contacting the toll-free producer licensing hotline For renewals, these requests should be made several weeks prior to the license expiration date to ensure a timely renewal. Also effective January 1, 2010, license applicants must provide the address to which the applicant wants the commissioner to direct all license-related correspondence. (Cal. Ins. Code 1655). C.Flood Insurance Training. All California licensed resident insurance producers that sell flood insurance policies must comply with the minimum training requirements of section 207 of the Flood Insurance Reform Act of 2004, and basic flood education as outlined at 70 Def. Reg. 52, 117 (September 1, 2005) (42 U.S.C. 4011). An insurance producer that sells flood insurance may satisfy the minimum training and education requirements by completing a three hour course related to the National Flood Insurance Program (NFIP) which was approved by CDI s Producer Licensing Bureau s Education Section. Any questions can be directed to the Education Section at In addition, the Federal Emergency Management Agency (FEMA) has prepared NFIP Advanced Training Topics and Objectives to be followed by education providers when developing advanced flood training courses. Sales Personnel 1.Casualty Broker-Agents. A casualty broker-agent licensee is a person authorized to act as an insurance agent, broker, or solicitor, and a casualty broker-agent license is a license so to act. Licenses to act as a casualty broker-agent include the type casualty, which entitles the licensee to transact insurance coverage against legal liability, including that for death, injury, disability, or damage to real or personal property. (Cal. Ins. Code 1625). Authority to act is required on one of the following ways: Form 417-5, a $10,000 bond for brokers, an Action of Notice of Appointment or Form Appointment of Insurance Solicitor Form 411-8A to be endorsed to a licensed organization. License Filing Fee: $140. Renewal Fee: $140 biennially. (When applying for the Casualty Broker-Agent and Property Broker-Agent licenses separately, the fee for each of these license types is $140; likewise, when applying for these licenses on the same application, the fee for both of these licenses is $140). To act as an insurance broker, a $10,000 bond (Form 417-5) must be filed, no fee required when submitted with a new license application, otherwise $24 per submitted bond. (Cal. Ins. Code 1665). All applicants must also submit fingerprints. Fee: $58.30 at CDI s examination sites, $68.95 at PSI s test centers. Fingerprinting services are also available for varying fees at DOJ approved Live Scan fingerprinting vendors throughout the state. All fingerprint services must include form LIC A. Fingerprinting can be done prior to taking the licensing test, or may be completed the day of the test at the PSI test center. Effective November 13, 2012, California now requires all applicants to pass the examination before submitting an application. All licensing tests are handled through PSI and include a $67 test fee as well as a $30 fee from PSI. 3.Personal Lines Broker-Agents. A personal lines broker-agent may transact the following lines of business: automobile insurance, residential property insurance (including earthquake and flood insurance), personal watercraft insurance, and umbrella or excess liability insurance. Fee is $140. Application form for individuals: For broker authority a $10,000 bond is required on Form The bond must be executed in California by a California admitted surety in the name of the applicant and signed by the applicant. Fingerprints must be submittedfee: $58.30 at CDI s examination sites and $68.95 at PSI s test centers. The term of the license begins on the date of issue and expires on the last calendar day of the month in which the initial license was issued. Cal. Ins. Code Property Broker-Agent. A property broker-agent licensee is a person authorized to act as an insurance agent, broker, or solicitor. Licenses to act as a property broker-agent include the type property, which entitles the licensee to transact insurance coverage on the direct or consequential loss or damage to property of every kind. Authority to act is required on one of the following ways: Form 417-5, a $10,000 bond for brokers, an Action of Notice of Appointment or Form Appointment of Insurance Solicitor or Form 411-8A to be endorsed to a licensed organization. License Filing Fee: $140. Renewal Fee: $140 biennially. (When applying for the Casualty Broker-Agent and Property Broker-Agent licenses separately, the fee for each of these license types is $140; likewise, when applying for these licenses on the same application, the fee for both of these licenses is $140). To act as an insurance broker, a $10,000 bond (Form 417-5) must be filed, no fee required. All applicants must also submit fingerprints. Fee: $58.30 at CDI s examination sites, $56at PSI s test centers, and fingerprinting services are also available for varying fees at DOJ approved Live Scan Fingerprinting vendors throughout the state. All fingerprint services must include form LIC A. Fingerprinting can be done prior to taking the licensing test, or may be completed the day of the test at the PSI test center. Effective November 13, 2012, California now requires all applicants to pass the examination before submitting an application. All licensing tests are handled through PSI and include a $67 test fee as well as a $33 convenience fee from PSI. Cal. Ins. Code Life-Only Agents. A life-only agent is authorized to transact insurance 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. New fee is $154 license and renewal, biennially. When applying with the accident & health license on the same application, the total fee for both licenses is $154. They must also submit fingerprints; fee: $58.30 at CDI s examination sites and $68.95 at PSI s test centers. In order to sell variable insurance contracts, the licensee must pass the NASDAQ exam and furnish proof that he or she is registered to sell securities in accordance with the rules of the NASD and be appointed by a life carrier that is also approved to sell variable contracts. California does not issue life brokers licenses. Cal. Ins. Code Accident and Health Agents. This license is authorized to transact insurance coverage for sickness, bodily injury, or accidental death and may include benefits for disability income and is also authorized to transact twenty-four hour care coverage. The fee is $154 for new license and renewal, biennially when applying with the life only license on the same application, the total fee for both of these licenses is $154. Cal. Ins. Code Bail Agents. Must have continuously resided in California for two years. Must be licensed to solicit, negotiate, or effect undertakings of bail on behalf of any surety insurer. Must be appointed by the surety, form and file a $1,000 bond on Form 437-9, executed by a California admitted surety and signed by the principal along with Action Notice of Appointment Form and Action Notice Statement of Employing Bail Agent Form 438. First Time Applicant: $566 Corportation: $514 (two year term)renewal individual $170 (two year term).renewal $ 154per company (two year term). Corporations use application

2 Page 2 of 6 form submitted with a $1,000 bond on Form and Action Notice of Appointment Form 438. License filing: $468 per company (two year term). Renewal: $140 per company (two year term). Individuals must submit fingerprints; processing fee: $58.30 at CDI s examination sites and $68.95 at PSI s test centers. For business entity licensees: each officer, director, stockholder, and employee must hold an individual bail agent license. Cal. Ins. Code 1811 Prelicensing and CE requirements apply. See Sections E and F. 8.Bail Permittees. A bail permittee is a person permitted to solicit, negotiate, issue and deliver bail bonds. Must have continuously resided in California for two years. Must be licensed to solicit, negotiate, issue, or deliver bail bonds. Must file a bond of bail permittee form for $5,000 executed by a California admitted surety and signed by the principal along with application for bail license form First Time Applicants $1,030 (two year term) Renewal is$716 (two year term). Must submit fingerprints; fee, $58.30 at CDI s examination sites and $56 at PSI s test centers. For business entity licensees: each officer, director, stockholder, and employee must hold an individual bail agent license. A corporation may not employ a bail permittee. Cal. Ins. Code and 1811 Prelicensing and CE requirements apply. See Sections E and F. 9.Bail Solicitors. A bail solicitor is a person who transacts bail on behalf of and as the employee of the holder of a bail license. Must have continuously resided in California for two years. Must file a $1,000 bond of bail solicitor Form executed by a California admitted surety and signed by the principal along with application for bail license Form Initial fee, $514 per employer (two-year term); Renewal$154, per employer (two year term). Employer must file form 438. Must also submit fingerprints; processing fee, $58.30 at CDI s examination sites and $51at PSI s test centers.a corporation may not employ a bail solicitor. Cal. Ins. Code 1803 and For business entity licensees: each officer, director, stockholder, and employee must hold an individual bail agent license. Prelicensing and CE requirements apply. See Sections E and F. 10.Cargo Shippers Agent. License may be issued to those who act as an agent on behalf of cargo owners or shippers, or both. This limited license authorizes the cargo owners or shippers agent to procure cargo insurance only on behalf of a cargo owner or shipper for whom the agent is also arranging for the carriage of goods. Biennial fee (expires on last day of month issued, biennially), $58. Application forms: Individuals, 441-9; Business Entities, The application and Bond of Cargo Shippers Agent Form for $10,000 executed by a California admitted surety completed in the name of the applicant and signed by the applicant, or the Organization Endorsement Form 411-8A completed by the sponsoring California licensed organization. Fingerprints are required; Fee: $58.30 at CDI s examination sites and $68.95 at PSI s test centers.entities must also pay an Organization Endorsement Fee of $24 with Form 411-8A. Cal. Ins. Code There are no prelicensing or CE requirements. 11.Part Time Fraternal Agents. Issued on a part-time basis only. The DOI says on its Website: A part time fraternal license holder is person who is affiliated with a fraternal benefit society or association, selling the society s or association s insurance to the membership on a substantially less than full- time basis, which is interpreted as twenty hours or less per week. Cal. Ins. Code License Filing: $ 154(two year term); Application for insurance license form Renewal fee: $ 154 (two year term). Must also submit fingerprints; fee: $58.30 at CDI s examination sites and $68.95 at PSI s test centers. Part time fraternal agents must submit their renewal filings to CDI electronically. There are no prelicensing or CE requirements. 12.Motor Club Agents. A motor club agent acts or aids in the solicitation, delivery, or negotiation of any membership or service contract on behalf of the appointing motor club. Cal. Ins. Code Biennial fee, $154, application forms: Individuals, along with Action Notice of Appointment Form A; Business Entities, Action Notice Fee: $24. Must also submit fingerprints; Fee: $58.30 at CDI s examination sites and $68.95 at PSI s test centers. There are no prelicensing or CE requirements. 13.Rental Car Agents and Endorsees. A rental car agent is authorized to offer or sell those types of insurance incidental to rental car agreements on behalf of an insurer authorized to write those types of insurance in California. An endorsee is an unlicensed employee of a rental car agent who has been properly trained. Application forms: Individuals, 441-9; Business Entities, In addition, the insurer must file a Rental car agent notice of appointment, RCA-3. Form RCA-3 certifies that the insurer is satisfied that the applicant is capable of acting on its behalf in the sale of rental car insurance. The applicant then files Form RCA-1 confirming that its employees have undergone the proper training. Biennial fees for Individuals and Business Entities are $463(two year term), new and renewal. A Rental Car Agent-Employer must do the following: a.annually update the list of its employees certified to sell the coverage and maintain this list for three years. b.complete certification RCA-1 and file annual certification RCA-2. c.submit any changes in its training materials thirty days in advance. d.conduct periodic retraining of its employees. e.pay enforcement costs. f.renew its license every two years. g.employers must provide training on ethical sales practices, personal accident insurance, liability insurance and personal effects as they pertain to renters and rental vehicles. Training in roadside assistance insurance and emergency sickness insurance may also be included. The endorsee training is described in form RCA 4. Prelicensing and CE requirements apply. See Sections E and F. Employees of rental car agents must: a.be eighteen years of age or older. b.be on a list of authorized employees (Form RCA 5) maintained by the rental car company. c.undergo mandatory training (form RCA 4). In addition, the rental car company must identify the authorized employee (Form RCA 5) who is the manager or supervisor at each location maintained by the company. Cal. Ins. Code Stock Agents. License is issued only to California resident individuals employed by an insurer or broker who sell any security. License fee: $$136. Expires each July 1. These licenses are not renewed. Rather, a new application must be submitted each year. There are no prelicensing or continuing education requirements. Application form Issued to individuals only. Must also submit fingerprints; fee, $58.30 at CDI s examination sites and $68.95 at PSI s test centers with Form A. 15.Limited Lines Travel Insurance Agents. A limited license may be issued to any organization enaged in transacting travel insurance through travel retailers. Written application is to be completed using form with a fee of $3,752for a two year license period. License renewal fees will be established shortly before January 1, 2015, when the first licenses issued will be due for renewal. Insurer Notice of Appointment is required completing Form TA 1 and a fee of $24. Initial certification of authorized travel retailers to be completed on form LIC TA 2. Submit training material stated in Outline of Required Training Elements, form LIC TA Credit Agents. A credit insurance agent is a person authorized by and on behalf of an insurer to transact credit insurance and receive a commission without having to be licensed as a life agent and/or property and casualty broker agent. Application forms: Individuals, 441-9; Business Entities, Licensing fee: $408 plus $41 application fee. Renews annually: $373 + $7 per endorsee. The term begins the date the license is issued and ends the last day of that same calendar month in the subsequent year. Must also submit fingerprints, processing fee: $58.30 at CDI s examination sites and $68.95 at PSI s test centers. Credit agents are now allowed to transact Guaranteed Automobile Protection (GAP) insurance pursuant to AB Portable Electronic Insurance Agent. A portable electronics insurance agent is a person authorized to sell insurance to cover the loss, theft, mechanical failure, or malfunction of or damage to portable electronics equipment. No portable electronics equipment vendor shall offer or sell any form of portable electronics equipment insurance unless that person is licensed as an insurance agent or broker. Portable electronics means all of the following: personal, self-contained, easily carried by an individual, battery-operated electronic communication, viewing, listening, recording, gaming, computing, or global positioning devices, including cell or satellite phones, pagers, personal global positioning satellite units, portable computers, portable audio listening, video viewing or recording devices, digital cameras, video camcorders, portable gaming systems, docking stations, automatic answering devices, their accessories, and service related to the use of those devices. Application forms: Individuals, 441-9; business entities, Application Fee: $241. Biennial Fee: $241. A portable electronics equipment insurance agent Insurer Notice of Appointment Form LIC PE 1 must be completed by an authorized insurer, or its managing agent, certifying that the insurer has satisfied itself that the named applicant is trustworthy and competent to act as its insurance agent limited to this purpose. The insurer will appoint the applicant to act as its agent to transact portable electronics insurance. The applicant must submit a list of all locations in California for which the licensee offers coverage under a policy of portable electronics insurance on Form LIC PE 2. (Cal. Ins. Code Cal. Ins. Code

3 Page 3 of 6 Portable Electronics Insurance Agent-Employers must: a.maintain and update annually, a list of all locations in California for which the licensee offers coverage under a policy of portable electronics insurance on Form LIC PE 2.b. Establish and update, when appropriate, training materials. Training materials must include instruction about the types of insurance that may be offered for sale; instruction on ethical sales practices; and instruction on the required disclosures to be given to prospective consumers. c.re-training of endorsees at least every three years and whenever there is a material change in the insurance products sold that requires modification of the training materials. d.renew their license every two years. e.pay initial license fee of $$292. At renewal, pay a renewal fee of $292. A renewal of an expired license may be filed after the expiration date and until the same month and date of the next succeeding year. There is a fifty percent penalty fee if the license is renewed late. f.provide training to employees who are to be endorsed to the license. Portable Electronics Agent-Employees must: a.be eighteen years of age or older. b.go through mandatory training. Cal. Ins. Code Other Insurance Professionals 1.Adjusters. Requires two years (2,000 hours of compensated time equals one year) experience adjusting claims. Must file a $2,000 surety bond (form 31A-14). The person in charge of the business (the qualified manager) must pass an exam. Application fee: $ 283 (two year tem) Examination fee: $72 Do not include the examination fee with the license filing fee when you submit your adjuster application; license fee (new and renewal): $234 per Qualified Manager named on the license. License expires biennially. The term of the license begins the date the license is issued and ends the last day of that same calendar month two years later. Application forms: individuals, 041-A; business entities, 042-A. Must also submit fingerprints; fee, $58.30 at CDI s examination sites and $68.95 at PSI s test centers. 2.Registered Administrators. Registered administrators are now licensed; biennial fee, $170 (expires last day of month issued, two years later). Renewal fee: $170. Administrators must submit their renewal filings to CDI electronically. Administrators are subject to the regulation of the insurance commissioner as described in CIC section Application Form: Must also submit fingerprints; processing fee, $58.30 at CDI s examination sites and $68.95 at PSI s test centers and Request for Live Scan Form A. There are no prelicensing or CE requirements for this license. 3.Life and Disability Analysts. A Life and Disability Insurance Analyst is a California resident who, for a fee or compensation of any kind, paid by or derived from any person or source other than an insurer, advises, purports to advise, or offers to advise any person insured under, named as beneficiary of, or having any interest in, a life or disability insurance contract, in any manner concerning that contract or his or her rights in respect thereto. Must be licensed as both a lifeonly (LO) and accident and health (AH) licensee for five years prior to taking the qualifying examination. Life and disability insurance analyst s license, biennial fee: $566; exam fee, $141 Please do not include the examination fee when you are submitting your application. Renewal fee: $566 (two year term). Individual Life and Disability Insurance Analysts must submit their renewal filings to CDI electronically. Business Entities licensed as Life and Disability Insurance Analysts will continue to renew with form LIC B. Application forms: individuals, 441-9; business entities, Must also submit fingerprints; fee, $58.30 at CDI s examination sites and $68.95 at PSI s test centers. Analyst s authority does not include employment by an insurer or sale of insurance of any kind, and analyst may also be licensed to sell insurance. There are no continuing education requirements for this license. 4.Public Adjusters. A public insurance adjuster is a person who, for compensation, acts on behalf of or aids in any manner, an insured in negotiating for or effecting the settlement of a claim or claims for loss or damage under any policy of insurance covering real or personal property or any person who advertises, solicits business, or holds himself or herself out to the public as an adjuster of those claims and any person who, for compensation, investigates, for those losses on behalf of any public insurance adjuster. Requires two years (2,000 hours of compensated time equals one year) experience adjusting claims. Must pass exam and post a $20,000 bond (form 94A). Fees: application, $240. Examination Fee: $62 Do not include the application fee with the examination feewhen you submit your adjuster application); authorizatoin application: $56. Application forms: individuals, 041-A; business entities, 042-A. Must also submit fingerprints; fee, $58.30 at CDI s examination sites and $68.95 at PSI s test centers. License expires two years on the last day of the month the original license was issued. 5.Interim Public Adjuster. A license as an interim public adjuster is available to a person employed by a public adjuster for the purpose of training. Must post a $20,000 bond on Form 94A. Public Adjuster Authorization Application Form 0100A must be completed by employer. License filing fee for one year is $240plus $62 application fee, plus $62 employer authorization. Fingerprints are required; fee, $58.30 at CDI s examination sites and $68.95 at PSI s test centerswith Request for Live Scan Service Form A. License is not renewable. After fulfilling the experience requirements, an interim public adjuster licensee must apply for a public adjuster license to continue in such capacity. California residency is a requirement. There are no prelicensing or continuing education requirements for this license. 6.Reinsurance Intermediaries. A Reinsurance Intermediary is any person who solicits, negotiates, or places reinsurance cessions or retro-cessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of that insurer. License Fee: $374If filing for both the reinsurance intermediarybroker and the reinsurance intermediary-manager, only one application and fee are required. Application forms: Individuals, ; Business Entities, The license is perpetual. Intermediary managers may be required to carry a fidelity bond or E&O insurance. There are no prelicensing or continuing education requirements for this license. 7.Life Settlements License. California viatical settlement statutes were repealed and replaced by life settlements statutes now contained in Sections through of the California Insurance Code (CIC). Under the terms of these statutes, life settlement brokers and providers will be required to obtain a license from the California Insurance Commissioner to transact life settlement business in California and will be subject to both licensing and consumer disclosure requirements. a.life Settlement Notifications Individuals transacting life settlements that have been licensed as life agents for more than one year. These individuals are required to notify CDI within ten days of transacting life settlements. CDI has created a life settlement notification form so that the notifications will be submitted through CDI s Website, Form LIC N. The cost for the notification is $241 and is required to be renewed every two years at the same time that the individual s life license is to be renewed. (10 CCR ). b.life Settlement Broker License Individuals who have not been licensed life agents for at least one year who intend to transact life settlements must first obtain a Life Settlement Broker license. This license is a one year license at a cost of $241. Included in the requirements to be met to obtain this license is that the applicant must complete a fifteen hour training course on life settlements. The renewal fee for this license is $241. Application forms are to be submitted via the CDI online application service (FLASH). (10 CCR ). 8.Limited Lines Automobile Insurance Agent. License Fee is $170 (license 2 year filing fee Examination Fee: $50 at a California Deparment of Insurance examination site or $83 at a PSI examination site.. A limited lines automobile insurance agent is a person authorized to transact specific automobile insurance products, as defined in Section 660 of the California Insurance Code. Licenses are issued as individual or business entities. Applications are to be submitted electronically. Biennial license reneals are to be submitted electronically. License and renewal fees are $170. D.Appointments: Life agents, travel agents, and property and casualty insurance agents 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. Insurance companies are required to submit all appointments and terminations in an electronic format.a 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 by form (Cal. Ins. Code 1704). E.Licenses Required of Nonresidents: Similar licenses are required of nonresidents who are licensed to transact more than one class of insurance, other than life insurance, disability insurance, title insurance, or life and disability insurance, under the laws of the state, territory of the United States, or province of Canada where he maintains a resident license to transact insurance. Nonresidents who desire broker authority must post a $10,000 bond. Nonresidents may not be licensed as life and disability insurance analysts, cargo shippers agents, fraternal agents, motor club agents, stock agents, and bail licensees. Fees are the same as for residents. Non-resident licensees are no longer required to be fingerprinted as a condition of obtaining an insurance producer license. Appointment in California is required for each insurer the agent wishes to represent. Appointment fee, $26; form A.

4 Page 4 of 6 Non-resident business entities will be able to endorse California resident individuals on their license. Also, non-resident business entities will not be required to endorse an individual from the business entity s resident state. They do need to endorse at least one individual from a state other than California. Multi-State Exposures. Nonresident licensure is required if the insurance transaction takes place in California by physical or a virtual presence. F.Prelicensing Examination and Education Requirements: 1.Residents. Requirements for the following: a.casualty Broker-Agent. When applying for the Casualty Broker-Agent license and the Property Broker-Agent license jointly: twentyhours of approved study; plus twelve hours of approved study in ethics and the California Insurance Code. Must also pass an exam. Fee: $41. b.personal Lines Broker-Agents. Twenty-four hours of approved study including at lease three hours of ethics training. Exam fee: $37. c. Property Broker-Agent. When applying for the Property Broker-Agent license: twenty hours of approved study; plus twelve hours of approved study in ethics and the California Insurance Code. Must also pass an exam. Fee: $41. d.life-only Agents. A minimum of twenty hours of prelicensing study is a prerequisite for qualification for a life-only agent license plus twelve hours of approved study in ethics and the California Insurance Code. Every life agent who sells annuities shall satisfactorily complete eight hours of training prior to soliciting individual consumers in order to sell annuities. Must also pass an exam; exam fee, $41. e.accident and Health. Require a minimum of twenty hours of prelicensing study as a prerequisite for qualification for a life-only agent license plus twelve hours of approved instruction in ethics and the California Insurance Code. This curriculum shall also include instruction in workers compensation and general principles of employers liability. Exam fee: $41. f.bail Agents, Permittees, Solicitors. Require a minimum of twenty hours of approved classroom subjects. Must also pass an exam; exam fee: $56. g.cargo Shippers Agent, Fraternal Agents, Motor Club Agents. Not applicable. h.rental Car Agents and Endorsees. Employer must provide training on ethical sales practices, personal accident insurance, liability insurance and personal effects as they pertain to renters and rental vehicles. Training in roadside assistance insurance and emergency sickness insurance may also be included. Refer to form RCA-4 for endorsee training. i.stock Agents. Not applicable. j.limited Lines Travel Insurance Agents. Requires twenty hours of approved prelicensing study plus twelve hours of approved prelicensing study on ethics. (Cal. Ins. Code ). k.adjusters. Requires two years (2,000 hours of compensated time equals one year) experience adjusting claims. The person in charge of the business (the qualified manager) must pass an exam; exam fee: $72. l.administrators. Not applicable. m.life and Disability Analysts. Requires five years experience as a life licensee preceding the date of the examination. Must pass an exam; exam fee: $140. n.public Adjusters. Requires two years (2,000 hours of compensated time equals one year) experience adjusting claims. Must also pass an exam; exam fee: $62 o.reinsurance Intermediaries. Not applicable. p.life Settlement Brokers. Must be a licensed life agent for at least one year. q.credit Agents. Must be trained in credit insurance. r.portable Electronics Agents. Require inhouse re-training at least once every three years in: types of insurance that may be offered for sale; ethical sales practices; and required disclosures. s.limited Lines Automobile Insurance Agent. Requires a minimum of twenty hours of prelicensing study as a prerequisite for qualification for a limited lines automobile insurance agent license. Twelve hours of approved instruction in ethics and the California Insurance Code. Exam fee: $50 at a California Department of Insurance examination site or $83 at a PSI examination site. Certificates of completion expire three years from completion of the course, whether a license is issued or not. For those selling Long-Term Care products or California Partnership for Long-Term Care products: eight hours of specific partnership LTC courses and eight other hours of approved coursework in LTC, prior to selling the product are required. For life only licensees selling annuity products, California law requires agents to complete eight hours of California specific annuities training prior to soliciting individual customers in order to sell annuities. In addition, if a life-only agent sells an annuity product in a subsequent license term the agent must complete an eight or four hour California specific annuity training course during that license term. Holders of the following designations are exempt from the forty hours of prelicensing education requirements: AIA, CPCU, CIC, CLU, and LUTCF. Also exempt are: life applicants who only sell funeral/burial insurance or policies with face values of $15,000 or less; and limited license applicants. Applicants may find information about providers of prelicensing education at Applicants are encouraged to review Prelicensing Educational and Exam Objectives bulletins, which are available at industry/0030-seek-pre-lic/0100-requirements/prelicensing-educational-objectivies.cfm, to access detailed information to successfully pass their license examinations. 2.Nonresidents. Nonresident applicants who are currently licensed in another state and who have completed the equivalent of the number of California required hours of prelicensing education are only required to take the California ethics exam. Any nonresident applicant with a license holding one or more of the following designations or the specified number of hours shall be exempted from any requirement for courses in general insurance that would otherwise be a condition of issuance of a license: more than twenty-six hours of the LUTCF program, more than thirty hours of the CLU program, more than twenty-five hours of the AAI program, or more than thirty hours of the CPCU program. (Cal. Ins. Code 1749(f), (g), and (h)). PSI Services, LLC, a California-based company providing state-based regulatory licensure services, now handles the scheduling of examinations for individuals licensed by the California Department of Insurance s Producer Licensing Bureau. Instructions for scheduling examinations are posted on PSI s Website at Individuals may schedule their examinations with PSI either online or by telephone. G.Continuing Education Requirements: Number of Hours Required: 1.Casualty Broker-Agent. When applying for the Casualty Broker-Agent license and the Property Broker-Agent license jointly or separately: Twenty-four hours biennially with threehours of ethics instruction. 2.Personal Lines Broker-Agents. Twenty-four hours during each two year license term including at least three hours of ethics. 3.Property Broker-Agent: When applying for the Casualty Broker-Agent license and the Property Broker-Agent license jointly or separately: Twenty-four hours biennially with three hours of ethics instruction. 4.Life-Only Agents (also licensed as accident and health agents). Twenty-four hours of instruction prior to renewal of the license. Must also complete three hours of ethics CE training every license term as a part of the requirements. Every life agent who sells annuities shall satisfactorily complete three hours of training every two years prior to license renewal. For resident licensees, this requirement shall count toward the licensee s continuing education requirement, but may result in completing more than the minimum number of continuing education hours. Any accident and health agent who wishes to sell twenty-four hour care coverage, shall complete a course, program of instruction, or seminar of an approved continuing education provider on workers compensation and general principles of employer liability, which shall be completed by examination approved by the commissioner as part of the continuing education course prior to selling this coverage. The required number of instruction hours shall be equal to but no greater than that required by the curriculum board for the prelicensing requirements of a casualty broker-agent. For resident licensees, this requirement shall count toward the licensee s continuing education requirement, but may still result in completing more than the minimum number of continuing education hours set forth in this section. (Cal. Ins. Code ). 5.Bail Agents, Premittees, Solicitors. Twelve hours of classroom study, annually. 6.Cargo Shippers Agent. Not applicable. 7.Fraternal Agents. Not applicable. 8.Motor Club Agents. Not applicable. 9.Rental Car Agents and Endorsees. Employers must provide training on ethical sales, practices, personal accident insurance, liability insurance, and personal effects as they pertain to renters and rental vehicles. Training in roadside assistance insurance and emergency sickness insurance may also be included. The endorsee training is described in form LIC RCA Stock Agents. Not applicable. 11.Limited Lines Travel Insurance Agents. Training shouldd be provided whenever there is a material change that requires a modification to the training materials, but no less than every three years (Cal. Ins. Code 1754(a)(6)).

5 Page 5 of 6 12.Adjusters. Insurance adjusters and public insurance adjusters are required to complete three hours of California insurance ethics of the required twenty-four continuing education hours. For non-resident licensees, if the declared resident state insurance regulator requires completion of continuing education in its jurisdiction, California continuing education requirements are waived. 13.Administrators. Not applicable. 14.Life and Disability Analysts. Not applicable. 15.Public Insurance Adjusters. Required to complete three hours of California insurance ethics of the required twenty-four continuing education hours. For nonresident licenses, if the declared resident state insurance regulator requires completion of continuing education in its jurisdiction, California continuing education requirements are waived. 16.Reinsurance Intermediaries. Not applicable. 17.Life Settlement Brokers. Not applicable. 18.Portable Electronics Insurance. Retraining of endorsees at least every three years and whenever there is a material change in the insurance products sold that requires modification of the training materials. 19.Credit Agents. Not applicable. Excess Hours: If licensed four years or more, a maximum of thirty hours earned only in the second half of a biennial reporting period may be carried over to the next reporting period. Final Exam: Does not have to be monitored. Requirements Not Applicable to the Following: 1.Limited licensees. 2.Those licensed as Surplus Liness Brokers or Special Lines Surplus Lines Brokers. 3.Those licensed as Life & Disability Analysts. 4.Life agents who only sell funeral/burial insurance or policies with face values of $15,000 or less. (Cal. Ins. Code ). 5.Those seventy years old or older with thirty continuous years as a licensee in California in good standing. (Cal. Ins. Code ). However, agents selling long-term care insurance must continue to complete the education requirements for LTC. Agents selling annuities must complete a one-time eight hour annuity training course prior to selling the product. Afterward, agents complete four hours of an annuity training course every two year license period. 6.Licensed nonresident agents who comply with the continuing education requirements of their home state. Renewal Procedure: 1.Course provider reports credits to the DOI within thirty days of course completion. 2.Licensee should keep completion certificate for five years for personal records. Nonresidents are exempt on a reciprocal basis, except for the requirement of twelve hours of approved study of the California Insurance Code and ethics. However, the LTC requirement still applies. Note: On or after June 27, 2011, all fire and casualty broker-agents and personal lines broker-agents, who have not already completed a similar homeowner s insurance valuation course, must complete three hours of approved study on estimating replacement value. This requirement is part of and not in addition to other continuing education requirements. The homeowner s insurance valuation course only needs to be taken once to satisfy the requirement in 10 CCR If the course is completed prior to June 27, 2011, the requirement may also be satisfied. (10 CCR ). H.Cancellation of Agency Contracts/Producer Appointments: After a written agency contract has been in effect for at least one year, insurers must give agents 120 days advance written notice of termination of the contract, except by mutual agreement or because of any of the following seven agent violations: 1.Exceeded his or her binding authority under the agency contract. 2.Violated the written underwriting rules or regulations of the insurer, a copy of which has been provided to the agent, which misleads the insurer concerning the nature or extent of a risk. 3.Failed to comply with the fiduciary requirements set forth in other parts of the California Code. 4.Failed to remit funds due and owing to the insurer within the time limits set forth in the agency contract; or within thirty days after written demand where the agency contract does not set forth such time limits. 5.Had his agency license suspended or revoked by the commissioner. 6.Engaged in fraudulent acts affecting his or her relationship with the insurer or its insureds. 7.Transferred ownership, control, or servicing of policies written with the insurer to another insurer or other specified entities. If the agent, after termination of the contract, cannot place a risk, the insurer must renew it for one policy period or one year, whichever is shorter. Termination fee: $22. (Cal. Ins. Code 769). I.Rules for Risk Retention and Purchasing Groups: Domestic risk retention groups must be licensed as liability insurance companies and submit a plan of operation to the commissioner. Foreign groups must file a notice of operation with the commissioner at least sixty days prior to commencing operations. This notice must include a designation of the commissioner as the group s agent for service of process. Filing fee: $898. Risk retention groups must reregister annually by December 31. The annual fee to reregister is $300. All policies issued by risk retention groups must contain the following notice on the front page in ten-point type: NOTICE This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group. (Cal. Ins. Code 132). Purchasing groups must supply the commissioner with a notice containing the following information: 1.The state in which the group is domiciled. 2.The lines and classifications of liability insurance to be purchased. 3.The name(s) and domicile(s) of the insurance company or companies from which the group intends to purchase. 4.The methods by which (and the persons through whom) the insurance will be offered to the group s members. 5.The principal place of business of the group. 6. Provide other information that may be required by the commissoner to verify qualification. Purchasing groups must designate the commissioner as their agent for the receipt of legal documents or process. Purchasing groups must reregister annually by December 31. The annual renewal fee is $200. (Cal. Ins. Code 134). J.Other License Rules, Requirements, or Restrictions: No unlicensed person, other than salaried employees of insurers may engage in any insurance activity in California. Unlicensed nonresidents may not enter California to solicit, inspect, or service but are not prohibited from soliciting insurance outside of California on California property or operation. Solicitation in state includes mail or telephone or other electronic communication into the state from the outside, as well as physical presence in the state. Any licensee failing to provide the federal identification number or social security number at the time of issuance or renewal of any license shall be reported by the commissioner and, if failing to provide after notification, the licensee shall be subject to a $100 penalty. (Cal. Ins. Code ). K.Policy Countersignature Requirements: Countersignature is not required. All policies issued by incorporated insurers shall be subscribed by the president or vice president, or chairman, or chief executive officer, or, in case of the death, absence, or disability of those officers, by any two of the directors, and countersigned by the secretary of the corporation. (Cal. Ins. Code 386). II.Commissions, Fees, Commingling of Funds, and Suitability in Annuity Transactions A.Commissions: There are no restrictions on the distribution of commissions other than in the Unfair Practices Act, Sections 10140, 1490 and (a) and the Unruh Civil Rights Act. Rebating of commissions is now allowed for all lines, due to the passage of Proposition 103 that repealed the anti-rebate provisions. B.Fees: Fees for service may be charged provided: 1.The fee is not being charged directly or indirectly for services related to procuring coverage from the California Automobile Assigned Risk Plan or the California FAIR Plan and is not prohibited by statute or regulation. 2.The broker is not an appointed agent of the insurer with which the coverage is or will be placed. 3.The broker provides the consumer with the Standard Broker Fee Disclosure (available for download from the Department of Insurance Website at 4.The broker has an in-force broker bond on file with the Department as required by the Insurance Code. C.Disclosure Requirements: When a broker-agent charges fees:

6 Page 6 of 6 1.The consumer agrees to the fee in advance of the agreement after full disclosure of all material facts surrounding the fee, including if true the fact that an insurer may pay to the broker a commission in addition to the broker fee. (10 CCR ). 2.The disclosure and agreement shall be printed in English and in any other language principally used by the broker to advertise, solicit or negotiate the sale and purchase of insurance. 3.The disclosure and agreement, signed or initialed by the consumer, shall be retained by a broker for eighteen months following the latest expiration of any policy to which the disclosure and agreement apply. (10 CCR ). D.Commingling of Funds: Producers and managing general agents must maintain a trust fund for premiums collected for insurers separate from any other agency funds. Interest-paying deposits or securities may be used with interest accruing to the agency only if written agreements to this practice are obtained from all insurers involved. E.Suitability in Annuity Transactions: Brokers and agents selling variable products must comply with suitability standards. Such standards obligate the broker or agent to make certain that there are reasonable grounds for believing that a variable contract recommended to a customer is suitable for that customer. It is expected that due diligence will be given to the consideration of suitability by brokers and agents licensed to sell variable contracts in California. A variable annuity shall be considered to have hazardous operations when the variable annuity contract, viewed as a whole, and from the viewpoint of a reasonably prudent investor, is so risky an investment that it seriously jeopardizes the retirement expectations of the investor. If the investor s reasonable retirement expectations are in jeopardy of remaining substantially unfulfilled, the presumption could arise that the contact is hazardous. (10 CCR ). All California resident and nonresident life agents who sell annuity products must satisfactorily complete eight hours of annuity training prior to soliciting individual consumers to sell annuities. In addition, upon completing the eight hour training, life agents who sell annuity products must also satisfactorily complete an additional four hours of annuity training every two years prior to their license renewal. For resident agents, this requirement is part of, and not in addition to, their continuing education requirements. (Cal. Ins. Code ). III.Statutory References: California Insurance Code Division 1, Part 2, 5, 5a, 6.5, 7, and California Code of Regulations, Title 10. Chapter 5, Subchapter 1, Article 6.8; Table of Contents, Subchapter 1, Article 6.8 Broker Fee Regulations.