Insurance

We have over 20 years of experience defending insurance agents and brokers in matters before the California Department of Insurance (CDI also known as DOI).  

Most professional licenses in California are governed by the Business and Professions Code, but disciplinary actions against insurance agents and brokers are governed by the Insurance Code.  Insurance Code sections 1738 and 1668 authorize discipline based on some ambiguous and subjective grounds, such as:

• "granting of the license will be against the public interest;" (Ins. Code, § 1668 (b).) 
• "lack "of good business reputation;" (Ins. Code, § 1668 (d).)
• "lacking in integrity;" (Ins. Code, § 1668 (e).)

We believe these grounds for license denial, suspension and revocation are unconstitutionally vague, but the statute has been upheld over the years and we have not had the opportunity to litigate this issue. 

Another questionable practice is summary license revocation or denial without a hearing under Insurance Code sections 1738 and 1669.  We have successfully challenged the constitutionality of summary license revocation based on a felony conviction. The Superior Court issued a writ of mandate (mandamus) overturning summary revocation of an insurance broker’s license for violation of due process. 

Important: Licensed insurance agents and brokers must report all criminal convictions (misdemeanors and felonies), felony charges, administrative actions and certain civil and bankruptcy matters within 30 days. (See California Insurance Code section 1729.2.)

If you hear from a Department of Insurance investigator, we recommend that you consult with counsel before responding.