State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
A California insurance agent decides to leave the insurance business entirely and wants her license canceled. Under Insurance Code Section 1708, the agent should:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 1708 provides for the cancellation of a license upon written notification to the Commissioner. A licensee who wishes to terminate the license communicates the cancellation in writing. Proper cancellation closes the licensee's record and avoids continued regulatory obligations, including renewal and continuing education requirements.
Why the other options are wrong
- B) Doing nothing leaves the license active, carrying ongoing renewal and compliance duties.
- C) Termination of appointments affects the authority to transact for that insurer but does not by itself cancel the individual's license.
- D) No lawsuit is needed; a written notice to the Commissioner is the statutory mechanism for cancellation.
Memory hook
Leaving the business? Write it down. License cancellation starts with written notice to the Commissioner.