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Glossary of Agent Licensing Terms
 

 

A-B C-D E-F G-H-I-J K-L M-N O-P Q-R S-T U-V-W-X-Y-Z

 

A ~ B

Administrator

A Certificate of Registration as an administrator is issued to a person who collects any charge or premium from, or who adjusts or settles claims on, residents of this State in connection with life or health insurance coverage or annuities or coverage described in Section 740 of the Insurance Code.

 
 
Bail Agent

A bail agent is a person permitted to solicit, negotiate and effect undertakings of bail on behalf of any surety insurer. All bail agents must meet specified bond requirements. Licensees that fail to meet bond requirements are not authorized to transact.

 
 
Bail Permittee

A bail permittee is a person permitted to solicit, negotiate, issue and deliver bail bonds. All bail permittees must meet specified bond requirements. Licensees that fail to meet bond requirements are not authorized to transact.

 
 
Bail Solicitor

A bail solicitor is a person who transacts bail on behalf of, and as the employee of, the holder of a bail license. All bail solicitors must meet specified bond requirements. Licensees that fail to meet bond requirements are not authorized to transact.

 
Bonds

A bond indemnifies any person requesting insurance from a licensee against loss of moneys or premiums collected by the licensee. Different types, or classes, of licensure have different bond requirements. However, in all cases where a bond is required, a bond must be on file to authorize the licensee to act in the capacity of their license class. A licensee with no bond on file is not authorized to act as a broker or in the capacity of their license class.

 

The following bond requirements apply to specific license classes,
as indicated.

 
Adjuster Bond

Bond in the penal sum of Two Thousand Dollars ($2,000) conditioned for the faithful and honest conduct of business by
the licensee.

 
Bail Agent Bond

Bond in the penal sum of One Thousand Dollars ($1,000) conditioned upon the proper application and disposal of all moneys collected or received by the bail agent, his solicitors licensed pursuant to his appointment and his employees.

 
Bail Permittee Bond

Bond in the penal sum of Five Thousand Dollars ($5,000) conditioned upon the proper application and disposal of all moneys collected or received by the bail permittee, his solicitors licensed pursuant to his appointment and his employees.

 
Bail Solicitor Bond

Bond in the penal sum of One Thousand Dollars ($1,000) conditioned upon the proper application and disposal of all moneys collected or received by the solicitor.

 
Broker Bond

Bond in the penal sum of Ten Thousand Dollars ($10,000) conditioned for the faithful and honest conduct of business by
the licensee.

 
Public Insurance Adjuster Bond

Bond in the penal sum of Five Thousand Dollars ($5,000) conditioned for the faithful and honest conduct of business by
the licensee.

 
Special Lines’ Broker Bond

Indemnifies any person requesting insurance against loss of moneys or premiums collected by the broker. A bond in the penal sum of Ten Thousand Dollars ($10,000) is required for special lines' surplus line brokers.

 
Surplus Line Broker Bond

Bond in the penal sum of Fifty Thousand Dollars ($50,000) conditioned that the licensee will fully and faithfully comply with the requirements of Chapter 6, Part 2, Division 1 of the California Insurance Code.

C ~ D

Cargo Shippers’ Agent

A cargo shippers' agent is a natural person or organization that acts as an agent on behalf of cargo owners or shippers, or both, 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.

 
 
Certificate of License Status

A certificate issued by the California Department of Insurance for the purpose of nonresident licensing, whereby California certifies to the other state insurance regulatory agency the license status of the California resident license.

E ~ F

Endorsee (see also Endorsement)

An endorsee is a natural person named on an organization license to exercise the power and perform the duties under an organization license.

 
 
Endorsement (see also Endorsee)

Authorizes licensee to transact on behalf of an organization license.

 
Fire and Casualty Broker-Agent

A fire and casualty (FX) licensee is a person authorized to act as an insurance agent, broker or solicitor.

 

An insurance agent is a person authorized by, and on behalf of, an insurer to transact all classes of insurance, except life insurance.

 

An insurance broker is a person who, for compensation and on behalf of another person, transacts insurance other than life with, but not on behalf of, an insurer. All brokers must meet specified bond requirements. Licensees that fail to meet bond requirements are not authorized to act as brokers.

 

An insurance solicitor is a natural person employed to aid an insurance agent or insurance broker in transacting insurance other than life.

G ~ H ~ I ~ J

Insurance Adjuster (see also Public Insurance Adjuster)

An insurance adjuster is a person other than a private investigator who, for any consideration whatsoever, engages in the business of making an investigation for the purpose of obtaining information in the course of adjusting or participating in the disposal of any claim in connection with a policy of insurance, or engages in soliciting insurance adjustment business. All insurance adjusters must meet specified bond requirements. Licensees that fail to meet bond requirements are not authorized to transact.

K ~ L

Life Agent

A life agent (LX) is a person authorized by and on behalf of a life, disability or life and disability insurer to transact life, disability or life and disability insurance.

 

 

Life and Disability Analyst

A life and disability insurance analyst is a person 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.

M ~ N

Motor Club Agent

A motor club agent is a person who acts or aids in any manner in the solicitation, delivery or negotiation of any membership or service contract on behalf of the appointing motor club.

 
 
Nonresident (see also Resident)

Nonresident means not residing in this state.

O ~ P

Order of the Commissioner

Result of disciplinary action taken by the California Department of Insurance. This disciplinary action may be in the form of a monetary penalty, a restriction, license suspension or revocation, or other action deemed appropriate.

 
 
Part-Time Fraternal Agent

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 20 hours or less per week.

 
 
Public Insurance Adjuster (see also Insurance Adjuster)

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. All public adjusters must meet specified bond requirements. Licensees that fail to meet bond requirements are not authorized to transact.

 
Interim Public Adjuster

An interim public insurance adjuster is a person employed by a public insurance adjuster for the purpose of training.

Q ~ R

Reinsurance Intermediary-Broker (see also Reinsurance Intermediary Manager)

A reinsurance intermediary-broker is any person, other than an officer or employee of the ceding insurer, firm, association or corporation that solicits, negotiates or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of that insurer.

 
 
Reinsurance Intermediary-Manager (see also Reinsurance Intermediary Broker)

A reinsurance intermediary-manager is any person, firm, association or corporation that has authority to bind, or manages all or part of the assumed reinsurance business of, a reinsurer (including the management of a separate division, department or underwriting office) and acts as an agent for the reinsurer whether known as a reinsurance intermediary-manager, manager, or other similar term.

 
 
Resident (see also Nonresident)

Resident means residing in this state.

S ~ T

Special Lines’ Surplus Line Broker (see also Surplus Line Broker)

A special lines' surplus line broker is a person who places the following types of insurance with nonadmitted insurers:

 

A) Insurance against perils of navigation, transit or transportation upon hulls, freights or disbursements, or other ship owner interests; upon goods, wares, merchandise and all other personal property and interests therein, in course of exportation from or importation into any country or transportation coastwise, including transportation by land or water from point or origin to final destination and including war risks; and marine builder's risks, dry-docks and marine railways, including insurance of ship repairer's liability, and protection and indemnity insurance, but excluding insurance covering bridges or tunnels;

 

B) Aircraft insurance; or

 

C) Insurance on property or operations of railroads engaged in interstate commerce.

 

All special lines' surplus line brokers must meet specified bond requirements. Licensees that fail to meet bond requirements are not authorized to transact.

 
Stock Agent

A stock agent is a person employed or appointed by an insurer or broker who, within this state and for compensation, sells any security.

 
 
Surplus Line Broker (see also Special Lines' Surplus Line Broker)
A resident surplus line broker is a person who places insurance with nonadmitted insurers, covering risks other than aircraft, and certain marine and transportation risks (see Special Lines' Surplus Line Broker).

A nonresident surplus line broker is a person limited to the placement of insurance with nonadmitted carriers on behalf of purchasing groups pursuant to the Federal Liability Risk Retention Act of 1986.

 

All surplus line brokers must meet specified bond requirements. Licensees that fail to meet bond requirements are not authorized
to transact.

 
Transact

Transact as applied to insurance includes any of the following:

(A) Solicitation;

(B) Negotiations preliminary to execution;

(C) Execution of a contract of insurance; or

(D) Transaction of matters subsequent to execution of the contract and arising out of it.

 
Travel Agent

A travel insurance agent is a person authorized to sell insurance (transportation ticket policies or baggage insurance) to persons entitled by ticket or otherwise to transportation on a common carrier.

U ~ V ~ W ~ X ~ Y ~ Z

 

 

 

 

 

 

 


 

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