Key Takeaways
- California insurance licenses are valid for 2 years and must be renewed before expiration
- Renewal requires 24 hours of continuing education, including 3 hours of ethics
- Licenses not renewed within 2 years of expiration require retaking the state exam
- Address changes must be reported to CDI within 30 days
- CDI can discipline licensees for violations including suspension, revocation, or fines
License Maintenance and Continuing Education
California insurance licenses require ongoing maintenance through continuing education and timely renewal.
License Terms and Renewal
| Item | Requirement |
|---|---|
| License Term | 2 years |
| Renewal Fee | $189 |
| Late Renewal (within 1 year) | $189 + penalty |
| Expired 1-2 Years | May reinstate with CE and fees |
| Expired Over 2 Years | Must retake exam |
Continuing Education Requirements
California requires 24 hours of continuing education (CE) every 2 years:
CE Requirements
| Requirement | Hours |
|---|---|
| Total CE Hours | 24 |
| Ethics (required) | 3 |
| Electives | 21 |
| CE Period | 2 years (matches license term) |
CE Course Requirements
- Must be completed at CDI-approved providers
- Online and classroom options available
- Ethics course must be California-specific
- Cannot repeat same course within 2-year period
- CE must be completed BEFORE license expiration
Exam Tip: California requires 24 hours of CE with 3 hours of ethics. This is different from other states that may require different amounts.
Renewal Process
- Complete CE before expiration date
- Submit renewal through CDI online system
- Pay renewal fee ($189)
- Receive renewed license
Late Renewal Consequences
| Timing | Consequence |
|---|---|
| Before expiration | Normal renewal |
| Up to 1 year late | Penalty fee, cannot practice until renewed |
| 1-2 years late | May reinstate with CE, fees, possible additional requirements |
| Over 2 years late | Must retake licensing exam |
Reporting Requirements
California producers must notify CDI of changes within 30 days:
- Change of business address
- Change of residence address
- Change of name
- Administrative actions by other states
- Criminal charges or convictions
Failure to Report
Failure to report changes within 30 days is a violation of the Insurance Code and may result in disciplinary action.
Disciplinary Actions
CDI can take disciplinary action against licensees for violations:
Types of Discipline
| Action | Description |
|---|---|
| Warning Letter | Minor first offense |
| Probation | License continues with conditions |
| Suspension | Temporary loss of license |
| Revocation | Permanent loss of license |
| Fine | Monetary penalty (up to $10,000 per violation) |
| Restitution | Payment to harmed parties |
Common Violations
- Misrepresentation to clients
- Failure to disclose material information
- Commingling of funds
- Unauthorized transactions
- Failure to maintain CE requirements
- Felony conviction
License Status
| Status | Meaning |
|---|---|
| Active | License current and in good standing |
| Inactive | Not actively practicing |
| Expired | License term ended, not renewed |
| Suspended | Temporary disciplinary action |
| Revoked | License permanently cancelled |
| Surrendered | Voluntarily gave up license |
Reinstating a License
To reinstate an expired or inactive license:
- Complete any outstanding CE
- Pay required fees
- Submit reinstatement application
- Pass background check if required
How many hours of continuing education does California require for license renewal?
Within how many days must a California insurance producer report an address change to CDI?
What happens if a California insurance license expires and is not renewed for more than 2 years?