Agent vs Broker

Agent — life and health business is transacted by agents, not brokers — In California, life and health insurance is sold by licensed agents who represent insurers; there is no separate broker role in the life and health lines. A broker generally acts for the insured in other lines (property/casualty), but life and disability business is transacted by agents under the Insurance Code. The life agent definition at CIC Section 1626(a)(1) covers soliciting life insurance on behalf of an insurer.

CA-specific example

May not engage in the business of insurance without the consent of a regulatory official — 18 USC Section 1033 makes it a federal crime for a person convicted of a felony involving dishonesty or breach of trust to engage in the business of insurance affecting interstate commerce without the written consent of an insurance regulatory official. The prohibition is on participating in the insurance business — such as serving as an agent, broker, or officer — not on being a policyholder. A state license alone does not override the federal bar; the offender must obtain regulatory consent to participate in the industry. Section 1034, in turn, provides civil penalties and injunctions for violations of Section 1033, reinforcing the federal gate over who may work in the insurance business.

National insurance concept