California Property & Casualty Broker-AgentCalifornia LawMedium
A California insurance producer applies for a new license. The Commissioner discovers that the applicant previously had an occupational license revoked in another state for a violation that would have been grounds for revocation in California. Under what grounds can the Commissioner deny this license application?
- AFailure to pass the licensing exam
- BLack of proper education
- CPrior administrative action in another jurisdiction
- DInsufficient financial solvency
Show answer & explanationAnswer & explanation
Correct answer: C. Prior administrative action in another jurisdiction
The Commissioner has the authority to deny a license application if the applicant has had an occupational license revoked in another state for a reason that would also be grounds for revocation in California.
Why the other options are wrong
- A. The question implies the applicant is already at the stage of review beyond the exam, focusing on prior disciplinary history.
- B. While education is a requirement, a prior revocation is a more direct and severe ground for denial.
- D. Financial solvency is more relevant to insurers than individual producers, and not a primary reason for denying a producer license based on prior misconduct.
License Denial: Prior Revocation
The California Insurance Commissioner can deny an insurance license application if the applicant has had an occupational license revoked in another state, provided the grounds for that revocation would also warrant revocation under California law.
- Commissioner's power
- Reciprocal revocation grounds
- Applies to out-of-state actions
Memory trick: Don't get 'DENIED' if your past is 'DIRTY'.