Beginning January 1, 2023, California public adjusters and other insurance professionals required to be licensed in the state must include their license numbers in emails involving “an activity for which a license is required.” This allows consumers to easily confirm that the representative they are dealing with has an active license with the California Department of Insurance.
Senate Bill 1242 included this amendment and added subsection (c) to California Insurance Code 1725.5. Together with public adjusters, the requirement also applies to:
- Variable life and variable annuity
- Accident and health or disease agents
- Limited lines auto insurance agents
- Independent Insurance Adjuster
- Life and Health Insurance Analyst
A copy of this list and frequently asked questions about the new requirement can also be found in a CDI notice published on December 22, 2022, linked here.
The snippet contains specific requirements, so be sure to confirm that your email signature complies with the following:
- Fonts – The license number must be of a type size no smaller than largest of any street address, e-mail address or telephone number of the licensee; for exampleif your phone number is in 12-point font and your email address is in 10-pt font, your license number must not be smaller than 12-point font.
- Place – The license number of an individual licensee must appear next to or on the line below the person’s name or title. The license number of an organization permit holder must appear next to or on the line below the organization’s name.
- Applicable Emails – a license number must be provided on each email that involves an activity for which a person must hold one of the licenses listed above. This means that office activities that do not require a license are exempt from the requirement. However, by putting a signature block and including your license number on each email, you avoid the headache of characterizing which emails contain activity for which you must have a license.
A person who violates may be subject to a fine by the commissioner of $200 for the first offense, $500 for the second offense and $1,000 for the third and subsequent offenses.
For additional information largely related to the interplay between individual and organizational licenses, I encourage you to read the CDI notice linked above.
For the full text of Code section 1725.5(c), see below:
A person licensed under section 1625, 1625.5, 1625.55, 1626, 1758.1, 1765, 14020, or 15006, or chapter 8 (commencing with section 1831), shall include the person’s license number in the email notification of an activity a license is required. A person’s license number must be in a type size no smaller than the largest of all telephone numbers, street addresses or email addresses of the person included in the email. The license number for an individual licensee shall appear next to or on the line below the person’s name or title. The license number of an organization permit holder must appear next to or on the line below the organization’s name.