Do You Need an Appointment with a Carrier in California?

Whether you need a carrier appointment in California depends on which type of insurance you're selling. Property & Casualty agents must be appointed by carriers before they can solicit business or bind coverage—working without an appointment violates California Insurance Code Section 1704. Life & Health agents operate differently under Section 1704.5, which allows them to present proposals and submit applications to carriers without formal appointments. Once the carrier issues a policy, they're considered to have authorized the agent retroactively.

What is an insurance carrier appointment?

An insurance carrier appointment is the formal authorization that allows you to represent a specific insurance company. When a carrier appoints you, they're essentially saying "this agent is authorized to sell our products and represent our company to consumers."

The appointment creates a legal relationship between you and the insurance company. It defines your authority to bind coverage, submit applications, collect premiums, and act on behalf of that carrier. Without an appointment, you're simply a licensed agent with no company to represent.

How appointments work in California

Insurance carriers file appointment notices with the California Department of Insurance (CDI) through electronic systems. Most carriers use the National Insurance Producer Registry (NIPR) for appointment processing, which California requires for companies that file more than 25 appointments annually.

The appointment filing formally notifies the CDI that you're now authorized to sell that carrier's products. Your license remains active regardless of how many appointments you hold, but you need at least one active appointment to actually conduct business.

Appointments remain active as long as you maintain your relationship with that carrier and keep your license current. If a carrier terminates your appointment or you end the relationship, they must file a termination notice with the CDI within 30 days.

Do Property & Casualty agents need carrier appointments in California?

Yes, absolutely. California Insurance Code Section 1704 states clearly: "Any person acting as a licensee under this chapter shall not act as an agent of an insurer unless the insurer has filed with the commissioner a notice of appointment, executed by the insurer, appointing the licensee as the insurer's agent."

This means Property & Casualty agents cannot solicit, negotiate, or bind insurance coverage without a valid carrier appointment. The appointment must be on file with the California Department of Insurance before you conduct any business on behalf of that carrier.

When must P&C appointments be filed?

California requires Property & Casualty carrier appointments to be filed before the agent begins soliciting business for that carrier. This "pre-appointment" requirement protects consumers by ensuring every agent selling P&C insurance has been properly vetted and authorized by the companies they represent.

In practice, most Property & Casualty agencies and brokerages handle appointment paperwork during your onboarding process. Before you start calling prospects or quoting policies, your employer will submit appointment applications to the carriers whose products you'll be selling.

The appointment filing process typically takes 3-7 business days once submitted, though some carriers process appointments faster. You should verify your appointments are active through the CDI's license lookup system before conducting any business.

What happens if you sell P&C insurance without an appointment?

Selling Property & Casualty insurance without a carrier appointment violates California insurance law and can result in serious consequences. The California Department of Insurance can take disciplinary action against your license, including suspension or revocation.

Additionally, any policies you bind without proper appointment authority may be considered invalid, leaving both you and your clients in a legally precarious position. Insurance companies typically won't honor coverage bound by unauthorized agents.

Your employing agency could face penalties as well, making it their responsibility to ensure all agents have proper appointments before allowing them to sell. This is why reputable agencies have strict systems for tracking appointments and preventing unauthorized selling.

Do Life & Health agents need carrier appointments in California?

Life & Health agents operate under different rules established in California Insurance Code Section 1704.5. This section allows licensed Life agents to present proposals and submit applications to carriers without formal appointments.

The statute reads: "A licensed life agent may present a proposal for insurance to a prospective policyholder on behalf of a life insurer for which the life agent is not specifically appointed, and may also transmit an application for insurance to that insurer."

How the Life & Health appointment process works

When a Life & Health agent submits an application to a carrier, that submission can trigger what's called an "automatic appointment" or "Just-In-Time (JIT) appointment." If the carrier issues a policy based on that application, California law considers the carrier to have authorized the agent to act on its behalf.

The carrier then becomes responsible for filing an appointment notice with the California Department of Insurance within 14 days of the first business submission that results in an issued policy. This timeline gives carriers flexibility while still ensuring the CDI has accurate records.

This system allows Life & Health agents to work with multiple carriers without maintaining dozens of formal appointments. You can shop the market for your clients, submit applications to whichever carrier offers the best solution, and the appointment happens automatically if the policy is issued.

When Life & Health agents should get formal appointments

While California law allows Life & Health agents to work without pre-appointments, many successful agents choose to establish formal appointments with their primary carriers. Formal appointments often provide benefits beyond legal authorization.

Appointed agents typically receive higher commission rates, access to better training and support, marketing materials, lead generation assistance, and preferential treatment when applications need underwriting review. Carriers invest more heavily in agents they've formally appointed.

If you plan to focus your practice on specific carriers or product lines, pursuing formal appointments makes business sense. The additional support and resources often outweigh the flexibility of remaining unaffiliated.

What's the difference between agent and broker appointments?

California distinguishes between "agents" and "broker-agents," and this distinction affects appointment requirements. Understanding which category you're operating in helps ensure you're following correct procedures.

Agent appointments

When you work as an agent for a specific insurance company, you represent that carrier to consumers. The carrier appoints you specifically to sell their products. You have binding authority for that carrier, meaning you can put coverage in effect on their behalf.

Agent appointments create a direct principal-agent relationship. The carrier is legally responsible for your actions when you're working within your appointed authority. Most captive agents (like State Farm or Farmers agents) work exclusively under agent appointments with their single carrier.

Broker-agent status

Most California insurance producers actually hold "broker-agent" licenses, which allow them to function in either capacity depending on the transaction. When acting as a broker, you represent the consumer rather than the insurance company.

Brokers don't necessarily need appointments to place business, but they cannot bind coverage directly. They must submit applications to carriers for approval. However, many broker-agents maintain appointments with preferred carriers to access binding authority and better commissions when appropriate.

The broker-agent license provides maximum flexibility. You can act as an appointed agent for carriers where you have appointments and binding authority, while also functioning as a broker to access any other carrier in the market for clients with special needs.