1675-1684

INSURANCE CODE
SECTION 1675-1684




1675.  Except as provided in Section 1680, the following applicants
who have theretofore been licensed under this code are exempt from
the requirements of this article:
   (a) An applicant for a license to act as a fire and casualty
broker-agent who has been licensed as a fire and casualty
broker-agent or surplus line broker during any part of the license
year in which the application is filed or the immediately preceding
license year.
   (b) An applicant for a license to act as a life-only agent who has
been licensed as a life-only agent during any part of the license
year in which the application is filed or the immediately preceding
license year.
   (c) An applicant for a license to act as an accident and health
agent who has been licensed as an accident and health agent during
any part of the license year in which the application is filed or the
immediately preceding license year.
   (d) An applicant for a license to act as a travel insurance agent.
   (e) An applicant specifically exempted from the particular
qualifying examination requirement by other provisions of this code.
   (f) A nonresident licensee who applies for a fire and 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, shall not be required to complete an examination. The
application must 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,
must indicate that the producer is licensed in good standing for the
line of authority requested.



1676.  (a) Except as set forth in Sections 1675 and 1679, the
commissioner shall not issue a permanent license pursuant to this
chapter to an applicant therefor unless the applicant has within the
12-month period next preceding the date of issue of the license taken
and passed the qualifying examination for that license. This section
shall not apply to a person licensed as a fire and casualty
broker-agent who applies for a license as a personal lines
broker-agent.
   (b) An application for both the life-only and accident and health
license types shall meet the requirement in subdivision (a) by
passing one examination covering subjects pertaining to both license
types. These applicants shall pay the fee for a life agent, as
specified in subparagraph (2) of subdivision (a) of Section 1751.
   (c) An applicant for a life-only license pursuant to Section 1626
or a life-only license limited to the payment of funeral and burial
expenses who is limited by the terms of a written agreement with an
insurer which has filed on that life-only agent's behalf a notice of
appointment with the commissioner to transact only specific life
insurance policies or annuities having an initial face amount of
fifteen thousand dollars ($15,000) or less that are designated by the
purchaser for the payment of funeral and burial expenses, shall not
be required to take the full life agent examination to obtain a
license. The applicant shall be required to take an examination
developed to test their knowledge of topics relevant to the type of
policies that they are restricted to sell.



1677.  Every qualifying examination for a license under this chapter
shall be in writing and shall be of sufficient scope to satisfy the
commissioner that the applicant has sufficient knowledge of and is
reasonably familiar with the insurance laws of this State and with
the provisions, terms and conditions of the insurance which may be
transacted pursuant to the license sought, and has a general and fair
understanding of the obligations and duties of the holder of such
license.



1678.  The commissioner shall, at least once each month, give in
each of the cities in which he has an office qualifying examinations
under this chapter. He may give such examinations at more frequent
intervals or in other places throughout the State.




1679.  (a) A nonresident applicant for a license shall be subject to
the same qualifying examination as is required of a resident
applicant. The examination may be administered to an eligible
nonresident applicant through the insurance authority of the state,
territory of the United States, or province of Canada of his or her
residence; provided, however, that the commissioner may, in his or
her discretion, enter into a reciprocal arrangement with the officer
having supervision of the insurance business in any other state,
territory of the United States, or province of Canada whose
qualification standards for the applicant to be examined are
substantially the same as or in excess of those of this state, to
accept, in lieu of the examination of an applicant residing therein,
a certificate of the officer to the effect that the applicant is
licensed in that state, territory of the United States, or province
of Canada in a capacity similar to that for which a license is sought
in this state and has complied with its qualification standards in
respect to the following:
   (1) Experience or training,
   (2) Reasonable familiarity with the broad principles of insurance
licensing and regulatory laws and with the provisions, terms and
conditions of the insurance which the applicant proposes to transact,
and
   (3) A fair and general understanding of the obligations and duties
of a holder of the license sought.
   (b) The provisions of this section shall not apply to a
nonresident applicant who maintains a license in a jurisdiction that
grants reciprocity to California residents in accordance with Section
1638.5.
   (c) A nonresident applicant for an organizational license must
name at least one person from their home state who may exercise the
power and perform the duties under their license. Additional persons
endorsed to that license may be residents of another state, but may
not be residents of California.



1680.  If a nonresident secures a license without examination
through the filing of a certificate described in Section 1679 and
thereafter seeks a license as a resident, he must take and pass the
qualifying examination for the license sought.




1681.  If an applicant fails the qualifying examination, he may,
subject to the provisions of this article and such rules and
regulations as may be promulgated hereunder, retake such qualifying
examination within the period prescribed in Section 1670 during which
he must qualify for the license sought.



1681.5.  (a) No person shall cheat on, subvert, or attempt to
subvert, any licensing examination given by the department,
including, but not limited to, engaging in, soliciting, or procuring
any of the following:
   (1) Any communication between one or more examinees and any other
person, other than a proctor or examination official, while the
examination is in progress.
   (2) The taking of all or a part of the examination by a person
other than the applicant.
   (3) Possession or use at any time during the examination or while
the examinee is on the examination premises of any device, material,
or document that is not expressly authorized for use by examinees
during the examination, including, but not limited to, notes, crib
sheets, textbooks, and electronic devices.
   (4) Failure to follow any examination instruction or rule related
to examination security.
   (5) The provision of false, fraudulent, or materially misleading
information concerning education, experience, or other qualifications
as part of, or in support of, any application for admission to any
examination.
   (b) Any person who willfully violates this section is guilty of a
misdemeanor punishable by a fine not exceeding ten thousand dollars
($10,000) or by imprisonment in a county jail not exceeding one year.
   (c) The commissioner shall bar any candidate caught willfully
cheating under this section from taking any license examination and
from holding an active license under any provision of this code for a
period of five years.



1682.  The commissioner may, in accordance with the procedure set
forth in Chapter 4 of Part I of Division 3 of Title 2 of the
Government Code, promulgate rules setting reasonable time limits
within which a person who has twice failed an examination or failed
to fulfill examination requirements may not take further
examinations.



1683.  An applicant shall schedule or reschedule his or her
qualifying examination using an electronic service approved by the
commissioner. If an applicant fails to appear at the time and place
set for the examination, he or she shall be deemed to have failed the
examination. If the applicant fails the qualifying examination, the
commissioner shall give him or her written notice thereof.



1684.  Except as otherwise provided in this article, whenever
reference is made in this article to an applicant for a license, such
reference includes each natural person who applies to be named on
the license of an organization, and wherever reference is made to a
person who has been licensed in a specified capacity, such reference
shall also apply to a person named to act in such capacity under the
license of an organization.