REVISED AB 2782 LICENSE CHANGE NOTICE
November, 2010 – The California Department of Insurance (CDI) has received several inquiries regarding a notice that was emailed to you on Friday November 5, 2010 (attached). The notice, entitled “Licensing Changes,” discussed upcoming licensing changes as a result of the passage of AB 2782 that may affect current fire and casualty broker-agents and applicants. One of these changes is that effective January 1, 2011 fire and casualty broker-agents must also hold an accident and health agent license to continue to transact disability insurance.
Several individuals contacted CDI requesting clarification for the term “disability insurance.” “Disability insurance” as it applies to this requirement are those lines of insurance contained in Section 1626(a)(2) of the California Insurance Code (CIC) which defines accident and health insurance as insurance coverage for sickness, bodily injury, or accidental death and may include benefits for disability income. Consequently, effective January 1, 2011 fire and casualty broker-agents who transact the lines of insurance noted in CIC Section 1626(a)(2) must also be licensed as an accident and health agent. As explained in the notice, current fire and casualty broker-agents need only complete a 20-hour prelicensing course on accident and health insurance (which is offered both online and in a classroom), pass a 75-question qualifying examination and pay a $128 application fee. As current licensees, both the fingerprinting requirement and the 12-hour training requirement on ethics and the California Insurance Code will be waived. CDI will be expediting the processing of license applications for accident and health agents until December 31, 2010.
