An insurance agent who wishes to voluntarily terminate their own license must:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
California law provides that an insurance license may be terminated at any time by the licensee giving written notice of the termination to the Insurance Commissioner. The written notice creates an official record and ensures that the Department knows the producer is no longer authorized to transact insurance. Merely stopping activity, surrendering the license to an employing agency, or publishing a notice in a newspaper does not formally terminate the license under the statutory scheme. Because the Commissioner is the licensing authority, notice must be directed to that office to be effective. Once the license is terminated, the producer must refrain from transacting insurance until a new license is obtained.
Why the other options are wrong
- B) The employer's agency is not the licensing authority, so surrendering the license to the agency has no legal effect on the license itself. Termination is effective only when written notice is given to the Insurance Commissioner, who holds the licensing power.
- C) Simply waiting for the license to lapse without taking action does not accomplish a voluntary termination. Inaction may lead the license to become inactive or expire, but a voluntary termination requires the licensee to give written notice to the Commissioner.
- D) Publishing a notice in a local newspaper is not the method the law provides for terminating a license. The statutory method is written notice to the Insurance Commissioner, and no publication requirement exists.
Memory hook
To quit the license, put the notice in writing to the Commissioner.