The addition of sections 1688(r) and 1668.5(a)(9) to the California Insurance Code, effective January 1, 2022, inspired the inclusion of this question for license application or renewals. Individuals, business entities, or business entity controlling persons must disclose specific civil actions, including allegations of:

• Breach of fiduciary duty;
• Elder or dependent abuse;
• Fraud;
• Malice;
• Misappropriation or conversion of funds;
• Misrepresentation; or
• Oppression.

The addition of this non-uniform background question to insurance license and renewal applications stresses the importance of civil action discovery for producers within the rapidly changing financial service regulatory environment.

Employers are encouraged to periodically review their background screening programs to ensure they are at the forefront of compliance. A civil records search can uncover if your applicant or employee is a plaintiff or defendant in any civil lawsuit. Reportable information includes the names of parties involved, types of lawsuits, and disposition information. Adding such a service can accurately and efficiently ensure you select only the most qualified, risk-free employees.

For more information on civil records searches, as well as other services that align with industry best practices, please reach out to your BIG Account Manager or Sales Executive.

Posted: March 8, 2022