The California Department of Insurance has the power to summarily revoke a licensee who is convicted of a felony. A “summary revocation” does not allow the client to present a defense—the revocation is done as a matter of law following a felony conviction. We were hired on behalf of a California licensee who suffered a previous conviction for manslaughter and driving under the influence, and whose license had been revoked by CDI.
About five years after the convictions, the client sought to be reinstated by the Department of Insurance, and filed a new license application, disclosing the previous convictions. Unfortunately, the Department retains the power indefinitely to refuse to issue a license if a client has been convicted of a felony, so the Department sent our client an Order of Summary Denial.
Because of our experience in assisting insurance producers and agents, we know that even a summarily denied application has an avenue for relief: the Petition for Reconsideration. We prepared and filed a lengthy Petition for Reconsideration to the Department, asking that the license denial be set aside. With extensive legal research supporting our legal arguments on behalf of the client, and because of the client’s genuine commitment to rehabilitation during the five years of non-licensure, the Department agreed with our Petition. The Department was willing to issue this client a restricted license and the client was able to immediately transact insurance.
If you face license discipline or license denial, consult an experienced attorney to evaluate your options. Not every remedy is available before every agency in every case, but there are times when strong legal arguments can persuade an agency like the California Department of Insurance, even when they have no legal obligation to provide a neutral hearing to consider those arguments.