Key Takeaways
- California P&C 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 and name changes must be reported to CDI within 30 days
- CDI can discipline licensees including suspension, revocation, or fines up to $10,000 per violation
Last updated: January 2026
License Maintenance and Continuing Education
California P&C 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) |
Special CE Requirements for P&C
- Flood Insurance: Agents selling flood insurance need additional flood CE
- Earthquake Insurance: California requires understanding of CEA policies
- Ethics: Must be California-specific ethics course
CE Course Requirements
- Must be completed at CDI-approved providers
- Online and classroom options available
- Cannot repeat same course within 2-year period
- CE must be completed BEFORE license expiration
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
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 | Up to $10,000 per violation |
| Restitution | Payment to harmed parties |
Common P&C Violations
- Misrepresentation of policy terms or coverage
- Failure to disclose material information
- Charging rates not approved by CDI
- Unfair claims practices
- Commingling of funds
- Failure to maintain CE requirements
License Status Types
| 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 |
Appointing Companies
P&C agents must be appointed by insurers to sell their products:
- Appointment Required: Before selling an insurer's products
- Appointment Fee: Paid by insurer
- Termination Reporting: Insurers must report terminations to CDI
- For Cause Terminations: May trigger CDI investigation
Test Your Knowledge
How many hours of continuing education does California require for P&C license renewal?
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Test Your Knowledge
What is the maximum fine CDI can impose per violation for P&C insurance violations?
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