Article 16. Variable Contract Agents of California Insurance Code >> Division 1. >> Part 2. >> Chapter 5. >> Article 16.
(a) For the purpose of making provision for the issuance of
policies or contracts authorized by Article 5 (commencing with
Section 10506) of Chapter 5 of Part 2 of Division 2, the commissioner
may grant authority to transact variable contracts to a person or a
natural person named on a license of an organization licensed as a
life agent that is appointed by an admitted insurer that is required
to register itself or to register a separate account or fund with the
United States Securities and Exchange Commission under the Federal
Investment Company Act of 1940, or to register its variable policies
or contracts with the Securities and Exchange Commission under the
Federal Securities Act of 1933, and has complied with that
requirement. The commissioner may grant variable contract authority
to a person who is not a resident of California and is not a licensed
life agent in California provided that the person is licensed for
both life and variable contract authority in his or her resident
state.
(b) No person shall act as an agent of the insurer in the
transaction of the policies or contracts unless he or she holds a
valid authority under this article.
Any authority granted pursuant to the provisions of this
article shall be effective only while a permanent underlying life
agent's license and registration in accordance with the rules of the
United States Securities and Exchange Commission or the Financial
Industry Regulatory Authority remains in full force and effect. The
provisions of subdivision (b) of Section 1704 relating to the
inactivation and reactivation of the underlying life agent's license,
and the renewal thereof, shall apply to any authority issued
pursuant to this article, except that references to agency
appointments and terminations shall relate only to the underlying
life agent's license. The authority may be revoked, suspended, or
otherwise affected for the same reasons and by the same procedures as
a life agent's license.
The commissioner shall not grant authority to transact
variable contracts unless the life agent or applicant furnishes proof
that he or she is registered to sell securities in California in
accordance with the rules of the United States Securities and
Exchange Commission or the Financial Industry Regulatory Authority.
Any authority granted to a life agent to transact variable contracts
shall immediately terminate upon the life agent no longer being
registered to sell securities in accordance with the rules of the
United States Securities and Exchange Commission or the Financial
Industry Regulatory Authority.
The commissioner may, pursuant to Chapter 4.5 (commencing
with Section 11371), Part 1, Division 3, Title 2 of the Government
Code, adopt reasonable rules and regulations necessary for the
convenient administration of this article.