When does an agent's license in California become inactive?

An agent’s license in California becomes inactive when the agent's appointment with an insurer has been terminated. This is a critical factor because maintaining an active appointment with at least one insurer is required for the agent to operate legally and effectively in the insurance industry. If an appointment is terminated, the agent cannot represent that insurer or sell their products, leading to an inactive status for the license.

In contrast, while not completing continuing education requirements or failing to pay the license renewal fee are serious issues that can ultimately affect the agent’s ability to practice, they do not immediately trigger an inactive status. Instead, these generally lead to a license being suspended or made inactive after a specific grace period or notice. Additionally, not selling any policies in a 12-month period may affect the agent's business status but does not directly cause the license to become inactive. Thus, the termination of the appointment with an insurer is the most direct cause for a license to become inactive.