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HomeFood and Agricultural CodeDiv. 6Ch. 5Art. 2§ 11940 License Reinstatement Conditions

§ 11940 License Reinstatement Conditions

Food and Agricultural Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 11940 License Reinstatement Conditions

If the state’s insurance director sees proof that an insurer was allowed to sell a policy in the state when it was issued and that the insurer must pay a court‑ordered judgment, the director won’t suspend the insurer’s license (or will put it back if it was already suspended).

Key Takeaways

  • •The director must check the insurer’s paperwork first.
  • •The insurer must have been licensed in the state when the policy was issued.
  • •If the insurer owes a judgment, the director cannot suspend the license and must reinstate it if it was already suspended.

Example

An insurance company sells a homeowner’s policy. Later a court orders the company to pay $200,000 for a covered loss. The director reviews the filing and confirms the company was properly licensed when the policy was written.

Because the company was authorized to issue the policy and must pay the judgment, the director keeps the company’s license active or restores it if it had been suspended.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 11940 License Reinstatement Conditions

If the director is satisfied from the papers which are filed pursuant to Sections 11938 and 11939 that the insurer was authorized to issue the policy of insurance in this state at the time of issuing the policy and that the insurer is liable to pay the judgment, at least to the extent and for the amounts which are provided in this article, the director shall not suspend the license or, if the license has already been suspended, he shall reinstate it. (Enacted by Stats. 1967, Ch. 15.)

Last verified: January 10, 2026

Key Terms

directorinsurerpolicy of insurancejudgmentsuspend the licensereinstate

Related Statutes

  • § 11933 License Suspension For Unpaid Judgments
  • § 11938 Affidavit Relieve Suspension
  • § 11939 Insurance Policy Filing Requirements
  • § 11932 Judgment Satisfaction Threshold
  • § 11934 License Suspension After Judgment

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Food and Agricultural Code. Section 11940.
View Official Source