Beginning January 1, 2023, public adjusters in California, and other insurance professionals required to be licensed in the state, must include their license numbers on emails involving “an activity for which a license is required.” This will allow consumers to easily confirm that the representative they are dealing with maintains an active license with the California Department of Insurance.
Senate Bill 1242 included this addition, adding subsection (c) to California Insurance Code 1725.5. Along with public adjusters, the requirement also applies to:
Variable life and variable annuity
Accident and health or sickness agents
Limited lines automobile insurance agents
Independent insurance adjusters
Life and disability insurance analysts
A copy of this list and FAQs about the new requirement can also be found in a CDI Notice published December 22, 2022, linked here.
The code section does provide specific requirements, so be sure to confirm that your email signature conforms with the following:
Font – The license number must be in a type size that is no smaller than the largest of any street address, email address, or telephone number of the licensee, e.g., if your telephone number is in 12-pt font and your email address is in 10-pt font, your license number must be no smaller than 12-pt font.
Location – The license number of an individual licensee shall appear adjacent to or on the line below the individual’s name or title. The license number of an organizational licensee shall appear adjacent to or on the line below the organization’s name.
Applicable Emails – a license number must be listed on every email that involves an activity for which a person must hold one of the above-listed licenses. This means that clerical activities that do not require licensure are exempt from the requirement. However, setting a signature block and including your license number on every email will avoid the headache of characterizing what emails contain activity for which you must hold a license.
A person in violation may be subject to a fine by the commissioner in the amount 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 individuals and organization licenses, I encourage you to read the CDI Notice linked above.
For the complete 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 emails the person sends that involve an activity for which a license is required. A person’s license number shall be in a type size that is no smaller than the largest of any telephone number, street address, or email address of the person included in the email. The license number of an individual licensee shall appear adjacent to or on the line below the individual’s name or title. The license number of an organizational licensee shall appear adjacent to or on the line below the organization’s name.