Amended in Assembly April 3, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 1391


Introduced by Committee on Insurance

March 4, 2013


An act to amend Sections 662, 739.3, 985, 1011, 1011.1, 1012, 1016, 1070.6, 1624, 1675, 1749.8, 1758.3, 1872.87, and 14090.1 of, and to repeal Section 668.5 of, the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL’S DIGEST

AB 1391, as amended, Committee on Insurance. Insurance: omnibus.

(1) Existing law provides that no cancellation of a motor vehicle insurance policy, not subject to certain cancellation protections because it has been in effect less than 60 days, is effective unless a notice of cancellation, subject to certain notice provisions, is mailed or delivered by the insurer to the named insured not later than the 59th day following the effective date and at least 10 days prior to the effective date of cancellation. Existing law also provides no notice of cancellation of a motor vehicle insurance policy, where the cancellation is based on, among other things, nonpayment of premium, is effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 days prior to the effective date of cancellation, except as specified.

This bill would delete the requirements for cancellation of a motor vehicle insurance policy less than 60 days old, and would apply the requirements regarding notice of cancellation for nonpayment of premiums, and other specified reasons, to all cancellation circumstances.

(2) Existing law requires every life agent who sells annuities to satisfactorily complete 8 hours of training prior to soliciting individual consumers, and requires every life agent who sells annuities to satisfactorily complete 4 hours of training prior to each license renewal.

This bill would clarify the completion of an 8-hour training requirement to initially procure a license to sell annuities does not satisfy the requirement to complete a 4-hour training course in order to renew the annuity license.

(3) Existing law prohibits the Insurance Commissioner from granting authority to transact variable contracts unless the life agent or applicant furnishes proof that he or she is registered to sell securities in accordance with the rules of the United States Securities and Exchange Commission or the Financial Industry Regulatory Authority.

This bill would make clear that the life agent or applicant is required furnish proof that he or she is registered to sell securities in California in accordance with the rules of the United States Securities and Exchange Commission or the Financial Industry Regulatory Authority.

(4) Existing law requires an individual holding an insurance adjuster license, not otherwise exempt, to complete a minimum of 24 hours of continuing education courses, as specified.

This bill would authorize an exemption from the continuing education requirements for an individual licensed as an insurance adjuster and as a property or casualty broker-agent who has met other specified continuing education requirements.

(5) Existing law defines an insurance solicitor as a natural person employed to aid an insurance agent or insurance broker in transacting insurance other than life.

begin delete

This bill would add disability and health insurances to that definition.

end delete
begin insert

This bill would redefine an insurance solicitor to mean a natural person employed to aid a property and casualty broker-agent acting as an insurance agent or insurance broker in transacting insurance other than life, disability, or health.

end insert

(6) Existing law provides that a nonresident licensee who applies for a property broker-agent, casualty broker-agent, personal lines broker-agent, or life agent resident license in this state, and who is currently licensed for the same lines of authority in the state of his or her current resident license, is not required to complete an examination. The application for examination is required to be received within 90 days of the cancellation of the applicant’s resident license and the producer database records, maintained by the National Association of Insurance Commissioners, are required to indicate that the producer is licensed in good standing for the line of authority requested.

This bill would provide that upon issuance of the California resident license, the examination waiver also applies to adding additional lines of authority to the California resident license provided that the individual was previously licensed in good standing for the requested additional lines of authority, and the application is received within 12 months of the cancellation of the applicant’s previous resident license in another state.

(7) This bill would make technical, conforming, and clarifying changes, and delete obsolete provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

Section 662 of the Insurance Code is amended
2to read:

3

662.  

(a) A notice of cancellation of a policy shall not be
4effective unless mailed or delivered by the insurer to the named
5insured, lienholder, or additional interest at least 20 days prior to
6the effective date of cancellation; provided, however, that where
7cancellation is for nonpayment of premium, at least 10 days’ notice
8of cancellation accompanied by the reason for the cancellation
9shall be given. Unless the reason accompanies or is included in
10the notice of cancellation, the notice of cancellation shall state or
11be accompanied by a statement that upon written request of the
12named insured, mailed or delivered to the insurer not less than 15
13days prior to the effective date of cancellation, the insurer will
14specify the reason for the cancellation.

15(b) This section shall not apply to nonrenewal.

16(c) Notices made to lienholders pursuant to this section may be
17done electronically with the consent of the lienholder.

18

SEC. 2.  

Section 668.5 of the Insurance Code is repealed.

19

SEC. 3.  

Section 739.3 of the Insurance Code is amended to
20read:

21

739.3.  

(a) “Company Action Level Event” means any of the
22following events:

23(1) The filing of an RBC Report by an insurer that indicates any
24of the following:

P4    1(A) The insurer’s Total Adjusted Capital is greater than or equal
2to its Regulatory Action Level RBC but less than its Company
3Action Level RBC.

4(B) If a life or health insurer, the insurer has Total Adjusted
5Capital that is greater than or equal to its Company Action Level
6RBC but less than the product of its Authorized Control Level
7RBC and 2.5, and has a negative trend.

8(C) If a property and casualty insurer, the insurer has Total
9Adjusted Capital that is greater than or equal to its Company Action
10Level RBC but less than the product of its Authorized Control
11Level RBC and 3.0, and triggers the trend test determined in
12accordance with the trend test calculation included in the Property
13and Casualty RBC instructions.

14(2) The notification by the commissioner to the insurer of an
15Adjusted RBC Report that indicates the event in paragraph (1),
16provided that the insurer does not challenge the Adjusted RBC
17Report under Section 739.7.

18(3) If the insurer challenges, under Section 739.7, an Adjusted
19RBC Report that indicates the event in paragraph (1), the
20notification by the commissioner to the insurer that the
21commissioner has, after a hearing, rejected the insurer’s challenge.

22(b) In the event of a Company Action Level Event, the insurer
23shall prepare and submit to the commissioner a comprehensive
24financial plan that shall do all of the following:

25(1) Identify the conditions in the insurer that contribute to the
26Company Action Level Event.

27(2) Contain proposals of corrective actions that the insurer
28intends to take and would be expected to result in the elimination
29of the Company Action Level Event.

30(3) Provide projections of the insurer’s financial results in the
31current year and at least the four succeeding years, both in the
32absence of proposed corrective actions and giving effect to the
33proposed corrective actions, including projections of statutory
34operating income, net income, capital, or surplus, or a combination.
35The projections for both new and renewal business may include
36separate projections for each major line of business and separately
37identify each significant income, expense, and benefit component.

38(4) Identify the key assumptions impacting the insurer’s
39projections and the sensitivity of the projections to the assumptions.

P5    1(5) Identify the quality of, and problems associated with, the
2insurer’s business, including, but not limited to, its assets,
3anticipated business growth and associated surplus strain,
4extraordinary exposure to risk, mix of business, and use of
5reinsurance in each case, if any.

6(c) The RBC Plan shall be submitted as follows:

7(1) Within 45 days of the Company Action Level Event.

8(2) If the insurer challenges an Adjusted RBC Report pursuant
9to Section 739.7, within 45 days after notification to the insurer
10that the commissioner has, after a hearing, rejected the insurer’s
11challenge.

12(d) Within 60 days after the submission by an insurer of an RBC
13Plan to the commissioner, the commissioner shall notify the insurer
14whether the RBC Plan shall be implemented or is, in the judgment
15of the commissioner, unsatisfactory. If the commissioner
16determines that the RBC Plan is unsatisfactory, the notification to
17the insurer shall set forth the reasons for the determination, and
18may set forth proposed revisions that will render the RBC Plan
19satisfactory, in the judgment of the commissioner. Upon
20notification from the commissioner, the insurer shall prepare a
21Revised RBC Plan, which may incorporate by reference revisions
22proposed by the commissioner, and shall submit the Revised RBC
23Plan to the commissioner as follows:

24(1) Within 45 days after the notification from the commissioner.

25(2) If the insurer challenges the notification from the
26commissioner under Section 739.7, within 45 days after a
27notification to the insurer that the commissioner has, after a
28hearing, rejected the insurer’s challenge.

29(e) In the event of a notification by the commissioner to an
30insurer that the insurer’s RBC Plan or Revised RBC Plan is
31unsatisfactory, the commissioner may, at his or her discretion,
32subject to the insurer’s right to a hearing under Section 739.7,
33specify in the notification that the notification constitutes a
34Regulatory Action Level Event.

35(f) Every domestic insurer that files an RBC Plan or Revised
36RBC Plan with the commissioner shall file a copy of the RBC Plan
37or Revised RBC Plan with the insurance commissioner in any state
38in which the insurer is authorized to do business if both of the
39following apply:

P6    1(1) That state has an RBC provision substantially similar to
2subdivision (a) of Section 739.8.

3(2) The insurance commissioner of that state has notified the
4insurer of its request for the filing in writing, in which case the
5insurer shall file a copy of the RBC Plan or Revised RBC Plan in
6that state no later than the later of:

7(A) Fifteen days after the receipt of notice to file a copy of its
8RBC Plan or Revised RBC Plan with the state.

9(B) The date on which the RBC Plan or Revised RBC Plan is
10filed under subdivision (c) of Section 739.7.

11

SEC. 4.  

Section 985 of the Insurance Code is amended to read:

12

985.  

(a) On or after January 1, 1970, as used in this article and
13in subdivision (i) of Section 1011, “insolvency” means either of
14the following:

15(1) Any impairment of minimum “paid-in capital” or “capital
16paid in,” as defined in Section 36, required in the aggregate of an
17insurer by the provisions of this code for the class, or classes, of
18insurance that it transacts anywhere.

19(2) An inability of the insurer to meet its financial obligations
20when they are due.

21(b) On or after January 1, 1970, an insurer cannot escape the
22condition of insolvency by being able to provide for all its liabilities
23and for reinsurance of all outstanding risks. An insurer must also
24be possessed of additional assets equivalent to the aggregate
25“paid-in capital” or “capital paid in” required by this code after
26making provision for all those liabilities and for that reinsurance.

27(c) On or after October 1, 1967, as used in this code provision
28for reinsurance of all outstanding risks and “gross premiums
29without any deduction, received and receivable upon all unexpired
30risks” means the greater of: (1) the aggregate amount of actual
31unearned premiums, or (2) the amount reasonably estimated as
32being required to reinsure in a solvent admitted insurer the
33unexpired terms of the risks represented by all outstanding policies.

34(d) On or after October 1, 1967, an insurer shall make provision
35for reinsurance of the outstanding risk on policies that provide
36premiums that are fully earned at inception and on policies that
37for any other reason do not provide for a return premium to the
38insured on cancellation prior to expiration.

39(e) On or after October 1, 1967, the commissioner shall prescribe
40standards for reasonably estimating the amount required to reinsure
P7    1that will provide adequate safeguards for the policyholders,
2creditors, and the public.

3(f) On or after October 1, 1967, this section shall not be
4applicable to life, title, mortgage, or mortgage guaranty insurers.

5(g) In the application of this section to disability insurance, as
6defined in Section 106, reserves for unearned premiums and
7amounts reasonably estimated as required to reinsure outstanding
8risks shall be determined in accordance with the provisions of
9Section 997.

10

SEC. 5.  

Section 1011 of the Insurance Code is amended to
11read:

12

1011.  

The superior court of the county in which the principal
13office of a person described in Section 1010 is located, upon the
14filing by the commissioner of the verified application showing any
15of the conditions in this subdivision exist, or a filing by the Federal
16Deposit Insurance Corporation of the verified application showing
17that the conditions enumerated in subdivision (j) exist and the
18conditions set forth in Section 5383(e)(3) of Title 12 of the United
19States Code having been satisfied, shall issue its order vesting title
20to all of the assets of that person, wheresoever situated, in the
21commissioner or his or her successor in office, in his or her official
22capacity, and direct the commissioner forthwith to take possession
23of all of its books, records, property, real and personal, and assets,
24and to conduct, as conservator, the business of the person, or so
25much thereof as to the commissioner may seem appropriate, and
26enjoining the person and its officers, directors, agents, servants,
27and employees from the transaction of its business or disposition
28of its property until any of the following further order of the court:

29(a) That the person has refused to submit its books, papers,
30accounts, or affairs to the reasonable inspection of the
31commissioner or his or her deputy or examiner.

32(b) That the person has neglected or refused to observe an order
33of the commissioner to make good within the time prescribed by
34law any deficiency in its capital if it is a stock corporation, or in
35its reserve if it is a mutual insurer.

36(c) That the person, without first obtaining the consent in writing
37of the commissioner, has transferred, or attempted to transfer,
38substantially its entire property or business or, without consent,
39has entered into any transaction the effect of which is to merge,
P8    1consolidate, or reinsure substantially its entire property or business
2in or with the property or business of any other person.

3(d) That the person is found, after an examination, to be in a
4condition that makes its further transaction of business will be
5hazardous to its policyholders, or creditors, or to the public.

6(e) That the person has violated its charter or any law of the
7state.

8(f) That any officer of the person refuses to be examined under
9oath, touching its affairs.

10(g) That any officer or attorney in fact of the person has
11embezzled, sequestered, or wrongfully diverted any of the assets
12of the person.

13(h) That a domestic insurer does not comply with the
14requirements for the issuance to it of a certificate of authority, or
15that its certificate of authority has been revoked.

16(i) That the last report of examination of any person to whom
17the provisions of this article apply shows the person to be insolvent
18within the meaning of Article 13 (commencing with Section 980)
19of Chapter 1 of Part 2 of Division 1; or if a reciprocal or
20interinsurance exchange, within the applicable provisions of
21Section 1370.2, 1370.4, 1371, or 1372; or if a life insurer, within
22the applicable provisions of Sections 10510 and 10511.

23(j) Notification is given by the United States Secretary of the
24Treasury that a determination has been made by the secretary, in
25accordance with and satisfying the provisions of Section 5383(b)
26of Title 12 of the United States Code, as to a person described in
27Section 1010 that is an insurance company as defined in Section
285381(a)(13) of Title 12 of the United States Code, and one of the
29following:

30(1) The board of directors, or body performing similar functions,
31of the person acquiesces or consents to the appointment of a
32receiver as provided for in Section 5832(a)(1)(A)(i) of Title 12 of
33the United States Code, with that consent to be considered to be
34consent to issuance of an order under this section.

35(2) The United States District Court for the District of Columbia
36issued an order for the appointment of a receiver of the person as
37provided for in Section 5382(a)(1)(A)(iv)(I) of Title 12 of the
38United States Code, without regard to whether an appeal of the
39order is pending.

P9    1(3) A petition by the United States Secretary of the Treasury
2for appointment of a receiver was made to the United States District
3Court for the District of Columbia and was granted by operation
4of the law as provided for in Section 5382(a)(1)(A)(v) of Title 12
5of the United States Code, without regard to whether an appeal of
6the order is pending.

7

SEC. 6.  

Section 1011.1 of the Insurance Code is amended to
8read:

9

1011.1.  

If a verified application is filed pursuant to Section
101011 that shows that the conditions set forth in subdivision (j) of
11Section 1011 exist and upon a showing that notice was provided
12to the person that is the subject of the verification application, all
13of the following apply:

14(a) A superior court hearing shall be held in which the person
15may oppose the verified application solely on the grounds that the
16conditions set forth in subdivision (j) of Section 1101 do not exist.
17The hearing shall be completed within 24 hours after the verified
18application is filed with the court.

19(b) The superior court shall issue an order as provided for in
20Section 1011 within 24-hours after the verified application was
21filed with the court.

22(c) If the superior court does not issue an order within 24 hours
23as provided for in subdivision (b), then an order described in
24Section 1011 shall be deemed granted by operation of law upon
25expiration of the 24-hour period, without further notice.

26(d) An order entered by the superior court pursuant to
27subdivision (b) or entered by operation of law pursuant to
28subdivision (c) shall not be subject to any stay or injunction
29pending appeal.

30

SEC. 7.  

Section 1012 of the Insurance Code is amended to
31read:

32

1012.  

Except in the case of an order issued based on a verified
33application showing the conditions in subdivision (j) of Section
341011 to exist, the order shall continue in force and effect until, on
35the application either of the commissioner or of that person, it
36shall, after a full hearing, appear to the court that the ground for
37the order directing the commissioner to take title and possession
38does not exist or has been removed and that the person can properly
39resume title and possession of its property and the conduct of its
40business.

P10   1

SEC. 8.  

Section 1016 of the Insurance Code is amended to
2read:

3

1016.  

(a) If at any time after the issuance of an order under
4Section 1011, or if at the time of instituting any proceeding under
5this article, including under Section 1011, it shall appear to the
6commissioner that it would be futile to proceed as conservator
7with the conduct of the business of that person, he or she may
8apply to the court for an order to liquidate and wind up the business
9of the person. Upon a full hearing of that application, the court
10may make an order directing the winding up and liquidation of the
11business of that person by the commissioner, as liquidator, for the
12purpose of carrying out the order to liquidate and wind up the
13business of that person.

14(b) Notwithstanding subdivision (a), the court may issue an
15order to liquidate and wind up the business of a person as to whom
16a verified application is filed pursuant to subdivision (j) of Section
171011 based solely on the verified application and hearing as
18provided for in subdivision (a) of Section 1011.1, without further
19hearing, or may issue an order to liquidate and wind up the business
20of the person upon application by the commissioner after the
21issuance of an order under Section 1011. The court’s order may
22direct the winding up and liquidation of the business of the person
23by the commissioner, as liquidator, for the purpose of carrying out
24the order to liquidate and wind up the business of the person.

25

SEC. 9.  

Section 1070.6 of the Insurance Code is amended to
26read:

27

1070.6.  

The withdrawal procedure and fees prescribed by this
28article shall not be required of a nonsurviving admitted constituent
29to a merger or consolidation into another admitted insurer in
30accordance with the applicable statutes and the commissioner’s
31prior written consent given pursuant to subdivision (c) of Section
321011, provided the commissioner is satisfied by documents,
33authenticated so as to be admissible in evidence over objection,
34filed with him or her, that:

35(a) The constituent has discharged all of its liabilities to residents
36of this state in the manner provided by Section 1071.5;

37(b) There will be an admitted insurer directly available to the
38constituent’s policyholders: (1) to obtain policy changes and
39endorsements, (2) to receive payment of premiums and refund
P11   1unearned premiums, (3) to serve notice of claim, proof of loss,
2summons, process, and other papers, and (4) for purposes of suit;

3(c) The constituent shall timely file with the commissioner
4appropriate financial statements reporting its insurance business
5done in this state during the calendar year of the merger or
6consolidation and all appropriate tax returns required by law for
7the period, and shall timely pay all taxes found to be due on account
8of the business; and

9(d) The constituent has surrendered its current California
10certificate of authority to the commissioner for cancellation as of
11the effective date of the merger.

12The withdrawal procedure and fees prescribed by this article
13shall not be required of an insurer that has been liquidated by a
14final order of a court of record of this or any sister state provided
15a certified copy of the order reciting the fact of liquidation and
16discharge of all obligations has been filed with the commissioner.

17

SEC. 10.  

Section 1624 of the Insurance Code is amended to
18read:

19

1624.  

begin deleteAn insurance solicitor is a natural person employed to
20aid end delete
begin insert“Insurance solicitor” means a natural person employed to aid
21a property and casualty broker-agent acting as end insert
an insurance agent
22or insurance broker in transacting insurance other than life,
23disability, or health.

24

SEC. 11.  

Section 1675 of the Insurance Code is amended to
25read:

26

1675.  

The following applicants who have theretofore been
27licensed under this code are exempt from the requirements of this
28article:

29(a) An applicant for a license to act as a property broker-agent
30or a casualty broker-agent who has been licensed as a property
31broker-agent, casualty broker-agent, or surplus line broker during
32any part of the license year in which the application is filed or the
33immediately preceding license year.

34(b) An applicant for a license to act as a life-only agent who has
35been licensed as a life-only agent during any part of the license
36year in which the application is filed or the immediately preceding
37license year.

38(c) An applicant for a license to act as an accident and health
39agent who has been licensed as an accident and health agent during
P12   1any part of the license year in which the application is filed or the
2immediately preceding license year.

3(d) An applicant for a license to act as a travel insurance agent.

4(e) An applicant specifically exempted from the particular
5qualifying examination requirement by other provisions of this
6code.

7(f) (1) A nonresident licensee who applies for a property
8broker-agent, casualty broker-agent, personal lines broker-agent,
9or life agent resident license in this state, and who is currently
10licensed for the same lines of authority in the state of his or her
11current resident license, shall not be required to complete an
12examination. The application shall be received within 90 days of
13the cancellation of the applicant’s resident license and the producer
14database records, maintained by the National Association of
15Insurance Commissioners, shall indicate that the producer is
16licensed in good standing for the line of authority requested.

17(2) Upon issuance of the California resident license, the
18examination waiver also applies to adding additional lines of
19authority to the California resident license provided that the
20individual was previously licensed in good standing for the
21requested additional lines of authority, and the application is
22received within 12 months of the cancellation of the applicant’s
23previous resident license in another state.

24

SEC. 12.  

Section 1749.8 of the Insurance Code is amended to
25read:

26

1749.8.  

(a) Every life agent who sells annuities shall
27satisfactorily complete eight hours of training prior to soliciting
28individual consumers in order to sell annuities.

29(b) Every life agent who sells annuities shall satisfactorily
30complete four hours of training prior to each license renewal.
31Completion of the eight-hour annuity training required by
32subdivision (a) does not satisfy the four-hour annuity training
33required by this subdivision. For resident licensees, this
34requirement shall count toward the licensee’s continuing education
35requirement, but may still result in completing more than the
36minimum number of continuing education hours set forth in this
37section.

38(c) The training required by this section shall be approved by
39the commissioner and shall consist of topics related to annuities,
40and California law, regulations, and requirements related to
P13   1annuities, prohibited sales practices, the recognition of indicators
2that a prospective insured may lack the short-term memory or
3judgment to knowingly purchase an insurance product, and
4fraudulent and unfair trade practices. Subject matter determined
5by the commissioner to be primarily intended to promote the sale
6or marketing of annuities shall not qualify for credit towards the
7training requirement. Any course or seminar that is disapproved
8under the provisions of this section shall be presumed invalid for
9credit towards the training requirement of this section unless it is
10approved in writing by the commissioner.

11(d) The training requirements set forth in this section shall not
12apply to nonresident agents representing an insurer that is a direct
13response provider.

14For the purposes of this section, “direct response provider” means
15an insurer that meets each of the following criteria:

16(1) The insurer does not initiate telephone contact with insureds
17or prospective insureds.

18(2) Agents of the insurer speak with insureds and prospective
19insureds only by telephone, and at the request of the insureds or
20prospective insureds.

21(3) Agents of the insurer are assigned to speak with insureds or
22prospective insureds on a random basis, when contacted.

23(4) Agents of the insurer are salaried and do not receive
24commissions for sales or referrals.

25

SEC. 13.  

Section 1758.3 of the Insurance Code is amended to
26read:

27

1758.3.  

The commissioner shall not grant authority to transact
28variable contracts unless the life agent or applicant furnishes proof
29that he or she is registered to sell securities in California in
30accordance with the rules of the United States Securities and
31Exchange Commission or the Financial Industry Regulatory
32Authority. Any authority granted to a life agent to transact variable
33contracts shall immediately terminate upon the life agent no longer
34being registered to sell securities in accordance with the rules of
35the United States Securities and Exchange Commission or the
36Financial Industry Regulatory Authority.

37

SEC. 14.  

Section 1872.87 of the Insurance Code is amended
38to read:

39

1872.87.  

(a) Each insurer required to pay special purpose
40assessments pursuant to Sections 1872.8, 1872.81, 1872.85, 1874.8,
P14   1or subdivision (a) of Section 1872.86 may, over a reasonable length
2of time, but in no event later than the calendar year in which the
3assessment is paid, recoup the special purpose assessments by way
4of a surcharge on premiums charged for the insurance policies to
5which those sections apply or by including the assessments within
6the insurer’s rates. Amounts recouped shall not be considered
7premiums for any purpose, including the computation of gross
8premium tax or agents’ commission.

9(b) The amount of the surcharge shall be separately stated on
10either a billing or policy declaration sent to an insured.

11

SEC. 15.  

Section 14090.1 of the Insurance Code is amended
12to read:

13

14090.1.  

(a) An individual who holds an insurance adjuster
14license and who is not exempt under subdivision (b) shall
15satisfactorily complete a minimum of 24 hours, of which three
16hours are to be in ethics, of continuing education courses pertinent
17to the duties and responsibilities of an insurance adjuster license
18reported to the insurance commissioner on a biennial basis in
19conjunction with his or her license renewal cycle.

20(b) This section does not apply to any of the following:

21(1) A licensee not licensed for one full year prior to the end of
22the applicable continuing education biennium.

23(2) A licensee holding a nonresident insurance adjuster license
24who has met the continuing education requirements of his or her
25designated resident state.

26(3) An individual licensed as an insurance adjuster and as a
27property or casualty broker-agent, pursuant to Section 1625, who
28has met the continuing education requirements specified in Section
291749.3.



O

    98