CA | California has issued an annual reminder to all licensees and applicants to report any changes in background information to the CA Department of Insurance (CDI) within 30 days of the date the licensee or applicant learns of the change in background information. The reporting requirements apply to both California resident and non-resident licensees and applicants.
Moreover, the reporting of citations and/or traffic violations is required if the citation and/or violation is charged as a felony or results in a felony or misdemeanor conviction. It is the licensee/applicant’s responsibility to understand the nature of any criminal charge and/or conviction and report accordingly.
Background Changes Subject to the Reporting Requirement:
- Felony and misdemeanor convictions, including convictions for driving under the influence (DUI), reckless driving, driving on a suspended/revoked license.
- A filing of felony criminal charges in state or federal court.
- Administrative actions regarding any professional or occupational license, including but not limited to actions against an insurance and/or real estate license.
- A licensee’s discharge, or attempt to discharge, in a personal or organizational bankruptcy proceeding, an obligation regarding any insurance premiums or fiduciary funds owed to any company, including a premium finance company or managing general agent.
- Any admission, or judicial finding or determination, of fraud, misappropriation or conversion of funds, misrepresentation, or breach of fiduciary duty.
Failure to report a change in background may result in the revocation, suspension, or restriction of a license, along with the assessment of monetary penalties. In addition, failure to report a change in background while a license application is pending may result in the denial of the application, or in the issuance of a restricted license and assessment of monetary penalties.
To report background changes to CDI, you may use the background change disclosure form available on CDI’s website. Additional information regarding background change reporting requirements, as well as the reporting disclosure form, can be found by clicking here.