Assemblymember Valencia’s Bill Clarifying License Numbers of Insurance Agents on Emails Is Signed into Law.

SACRAMENTO - Governor Gavin Newsom has just signed into law Assembly Bill (AB) 1578 by Assemblymember Avelino Valencia (D-Anaheim), which clarifies requirements related to insurance agent license number disclosure law.

In 1995, the Legislature added California Insurance Code §1725.5 (effective in 1997). This statute mandated that different types of insurance agencies include their license numbers on various materials distributed to consumers within the state. This requirement remained unchanged until the passage and enactment of SB 1242 in 2022, which modernized existing statutes to encompass email and digital communications. When the California Department of Insurance (CDI) issued guidelines on implementing these regulatory changes, it became evident that there were concerns about potential confusion regarding the newly established requirements.

AB 1578 clarifies the issue by enumerating the license number requirement for email correspondence of insurance agents, brokers, and adjusters in California. Specifically, this language stipulates that individual licensees should include their own license numbers on emails sent individually, while agency license numbers should be included on emails sent by the insurance agency. This streamlined approach eliminates confusion, aligns the requirements for email correspondence with those of printed documents, and facilitates easy verification for consumers.

“The National Association of Insurance and Financial Advisors (NAIFA) -California thanks Assemblyman Valencia for authoring AB 1578. This bill is a simple but important clarification to the law to ensure that agents and brokers do not encounter enforcement issues because of lack of clarity, while ensuring that consumers have the information necessary to make sure agents and brokers have licenses in good standing” said Marc Bregman, President, NAIFA-California.

AB 1578 is a sensible piece of legislation that enhances consumer protection and streamlines compliance for licensees.