California Life-Only & Accident and Health AgentCalifornia Law - GeneralHard
A life-only agent is applying for a new license in California. Which of the following may be grounds for the Commissioner to deny the agent's license application?
- AThe applicant has a history of changing employers frequently.
- BThe applicant has a minor traffic violation on their record from six months ago.
- CThe applicant has declared bankruptcy five years ago.
- DThe applicant has previously been denied a license in another state for cause.
Show answer & explanationAnswer & explanation
Correct answer: D. The applicant has previously been denied a license in another state for cause.
California Insurance Code Section 1668 specifies reasons for license denial. Having a license denied, suspended, or revoked by another state for cause is a common and valid ground for the California Commissioner to deny an application, as it indicates a prior issue with fitness or qualification.
Why the other options are wrong
- A. Frequent job changes, while potentially raising questions, are not typically a direct statutory ground for license denial.
- B. A minor traffic violation is typically not considered a serious enough offense to warrant denial of an insurance license.
- C. Bankruptcy, while a financial matter, is generally not an automatic disqualifier for an insurance license after rehabilitation, especially if it occurred several years prior.
Grounds for License Denial (CA)
The California Insurance Commissioner can deny a license application based on specific criteria related to an applicant's character, fitness, and prior conduct.
- Includes prior license denials/revocations in other states.
- Includes conviction of a felony or certain misdemeanors.
- Includes engaging in fraudulent or dishonest acts.
Memory trick: Past license troubles in other lands, mean California might deny your hands.