California Insurance Code & EthicsQuestion 50 of 716
Under California law, before transacting any insurance business in the state, a person must:
a.Register directly with the Department of Managed Health Care
b.File a fictitious business name statement with the county clerk
c.Hold a license issued by the Insurance Commissioner
d.Pass a Live Scan background check, which alone permits sales
Explanation
§1631 makes it unlawful to solicit, negotiate, or effect insurance in California without first being licensed by the Commissioner. A background check (live scan) is part of the application but does not by itself authorize transacting insurance.
Law Reference: Cal. Ins. Code §1631This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
Practice all 716 questions free — no signup required.
Own the complete California Life & Health Insurance Producer Exam guide — PDF + EPUB, $19.99 →
Related questions on this topic
- Which of the following actions by an insurer would constitute an unfair claims settlement practice under California law?
- An agent convinces a policyholder to surrender an existing whole life policy and buy a new one, primarily to earn a fresh first-year commission, even though the change disadvantages the client. This practice is known as:
- Which of the following describes rebating?
- Generally, how many hours of continuing education must a resident life-only or accident & health agent complete during each two-year license period after the first renewal?
- A newly licensed California life-only agent must complete how many hours of CE during the first two years of licensure?
- Premiums collected by an agent from a policyholder, before being remitted to the insurer, are held by the agent in what capacity?
Last reviewed: · editorial process
PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)