The new mandate took effect on Jan. 1 and applies to both resident and nonresident licensees.
Agents and brokers licensed in California must now include their California license numbers on emails that involve activities for which a license in that state is required. This new mandate took effect on Jan. 1, and applies to both resident and nonresident licensees.
According to the California Department of Insurance, the requirement “applies to every email, regardless of where the emails are sent from or to, that involves an activity for which a person must hold" a producer license in the Golden State.
Although the new obligation applies to agents and brokers when transacting business in California, it does not affect emails related to activities that would not require a California license, including clerical activities, and activities that are outside the jurisdiction of regulators there.
The California Department of Insurance issued a notice and FAQ late last month that explained the new law and, among other items, indicated the following:
- Licensees subject to the new requirement must include their California license numbers in a type size that is no smaller than the largest type size used in the email for any telephone number, street address, or email address of the person identified.
- The California Department of Insurance interprets the new requirement to apply to both individual and organizational licensees. The Department's view is that an individual licensee sending an email in which both the individual producer and agency or business is named should include the California license numbers of both the individual and organization.
- The law also outlines where license numbers must appear in emails. The license numbers of individual producers must appear adjacent to or on the line below the person's name or title. The license numbers of agencies shall appear adjacent to or on the line below the organization's name.
- The mandate only applies to emails that involve an activity for which a California license is required.
Wes Bissett is Big “I" government affairs senior counsel.