CA| The California Department of Insurance issued an annual reminder that all insurance licensees, applicants, and related individuals must promptly report any changes in background information—including criminal convictions, certain financial events, or administrative actions—within 30 days of discovery, as required by California Insurance Code section 1729.2. Both individuals and business entities, as well as unlicensed officers and endorsed employees, are subject to these requirements; failure to report timely may lead to fines, license denial, restriction, suspension, or revocation. Reports must be submitted either online through the Department’s Background Change Disclosure Form or via the National Insurance Producer Registry (NIPR), and must include detailed supporting documentation.
Key Points:
- Reporting is required within 30 days for background changes such as criminal convictions, license discipline, or qualifying bankruptcies, for all licensees and associated personnel.
- Failure to report can result in severe disciplinary action, including fines and loss or restriction of license.
- Reports must be submitted electronically with comprehensive supporting documents via the Department of Insurance or NIPR systems.