In March of 2024, California sent out a notice reminding insurance agents, adjusters, and even pre-licensing course providers (like our team here at LyteSpeed Learning) that it is mandatory to notify the state if a person’s “Background Information” has changed.
By “Background Information,” the state is specifically referring to criminal and civil convictions and liabilities – including not only felonies like theft, but also citations or traffic violations that result in a felony citation or misdemeanor conviction.
These changes in background information are required annually, within 30 days of the date of licensure and continuing education, or within 30 days of when a change in background has occurred.
Can You Sell Insurance With a Criminal Record?
Yes, possibly. The decision is up to the insurance review board. You may need to supply specific documentation depending on the type of crime and conviction. The CDI does not share the specific details about what crimes might prevent licensure. You can read more about this at the California Department of Insurance:
https://www.insurance.ca.gov/0200-industry/0035-background-info/background-faq.cfm
What Are The Next Steps?
If you have a criminal record, you are not necessarily banned from selling insurance or operating an insurance agency. But failure to report the criminal record so can result in substantial fines and a loss of license, so anyone that has a change in their background information is strongly encouraged to follow this state requirement.
You can file this form digitally using the following link:
You also do not need to be a practicing insurance agent for this requirement. You need to report your background information for renewals as well. As long as you are a licensed agent, you must report most criminal convictions and civil penalties. You can find a complete list of all the “Background Information” that needs to be reported on the notice sent out by the State Insurance Commissioner Ricardo Lara:
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It is very important that you follow this requirement to avoid significant penalties and the possible loss of your insurance license. If you’d like to stay up to date with additional insurance related law changes, requirements, and news, make sure you are following LyteSpeed Learning. You can follow our Facebook page, or our LinkedIn, where we’ll send out updates as they occur. You can also contact us if you’d like us to add you to our monthly newsletter.