Domestic = California; foreign = another U.S. state; alien = another country.

Admitted = authorized to transact insurance in CA; nonadmitted = not authorized.

Mutual → policy dividends to owners; stock → dividends to shareholders.

Direct response = no agent; the customer applies directly.

Captive = one insurer; independent = several insurers.

In the managerial system the branch manager is a company employee.

Three types of authority: express, implied, apparent.

Apparent authority comes from the insurer's conduct toward the public.

§1733: premiums are fiduciary funds; diverting them is theft.

From 1/1/2026: 12 hours of ethics and CA Insurance Code (incl. 1 hour fraud); certificate valid 3 years.

Pass the exam within 12 months before the license is issued.

The Commissioner may deny for lack of integrity, misstatements, fraud or a felony conviction.

Agent represents the insurer; broker represents the insured (client).

A life agent acts for an insurer only after a notice of appointment is filed.

Analyst = fee from non-insurer; life settlement broker = owner's fiduciary (a life agent licensed 1+ year qualifies by notice and $85); no life solicitor license.

2-year term; CE 24 hours incl. 3 ethics (1 hour fraud); annuity sellers 8 hours first + 4 per renewal.

Address change: immediately; background change: in writing within 30 days.

Late renewal allowed up to 1 year after expiration with a delinquent fee.

No license: up to $50,000 and/or 1 year. Unfair practice: $5,000 per act ($10,000 willful).

Cease and desist violation: up to $5,000 ($55,000 willful).

Replacement/senior violations by an agent: at least $1,000 first; $5,000-$50,000 repeat or knowing.

MFDRSU: Misrepresentation, False advertising, Defamation, Rebating, Sharing commissions, Unfair discrimination.

Only the Commissioner enforces the Unfair Practices Act; $5,000 per act, $10,000 if willful.

Pay commissions only to properly licensed persons.

FCRA: consumer report vs. investigative consumer report (interviews).

7-year/10-year reporting limits do not apply to life insurance of $150,000 or more.

§1033: felony of dishonesty needs written consent to work in insurance; violation up to 5 years; civil penalty up to $50,000.

Twisting = misleading replacement, usually across insurers; churning = replacement within the same insurer for commissions.

Same-company replacements still need the notice and a written before/after comparison.

Boycott, coercion or intimidation = §790.03(c).

SAR: suspicious activity of $5,000+; file with FinCEN within 30 days of detection (max 60); keep 5 years; confidential.

Cash over $10,000 received: Form 8300.

Insurer AML program: risk-based controls, compliance officer, ongoing training of agents, independent testing.

Prelicensing 12 hours (from 2026); CE 24 hours every 2 years incl. 3 hours ethics.

Annuity training 8 + 4; LTC training 8 hours up front and 8 per period after.

Address change immediately; background changes within 30 days.

Replace 30/3 (not 30/5); IRA 73/25% (not 70½/50%).

AML: SAR at $5,000+ within 30 days; Form 8300 for cash over $10,000.

SPIA payments are exempt from the 10% early-withdrawal tax.