The California LIC CC1 form is the one-page Certification of Coverage that an LLC insurance agency, brokerage, or surplus line brokerage uses to prove it carries the errors and omissions coverage required by California Insurance Code Section 1647.5. Your E&O insurer completes and signs it, and you file it with the California Department of Insurance (CDI) Producer Licensing Bureau when you first apply for an LLC license and every year after that by March 31. If a current certification is not on file, CDI can inactivate your license without a hearing.
Who Has to File It
The form applies only to limited liability companies that hold or are applying for a California insurance agency, brokerage, or surplus line brokerage license. Section 1647.5 requires an LLC to provide security for errors and omissions claims arising from its insurance practice both at the time of licensing and at all times while the license is active.1California Legislative Information. California Insurance Code 1647.5 Sole proprietorships, partnerships, and corporations do not use this form.
Initial applicants and existing licensees file the same form in the same way. The only difference is timing: an initial filing accompanies the license application, and the renewal filing must reach CDI by March 31 each year.2California Department of Insurance. Business Entity Limited Liability Company Requirements
What Coverage the Form Has to Certify
Before the LIC CC1 can be signed, your LLC needs qualifying coverage already in place. The required amount is $100,000 multiplied by the number of licensees rendering professional services on behalf of the LLC, with a $500,000 floor and a $5,000,000 ceiling for claims first asserted in any single calendar year.1California Legislative Information. California Insurance Code 1647.5 An LLC with three licensees still needs $500,000 because three times $100,000 falls below the floor. An LLC with eight licensees needs $800,000.
The policy must include language preventing the insurer from canceling, non-renewing, or terminating coverage without written notice to the Insurance Commissioner within 10 days.3California Department of Insurance. Certification of Coverage for Limited Liability Companies
You can meet the security requirement with cash, bank certificates of deposit, U.S. Treasury obligations, bank letters of credit, or bonds of insurance companies held in trust or bank escrow instead of, or in combination with, E&O insurance. The same dollar formula applies.1California Legislative Information. California Insurance Code 1647.5 If you use escrowed assets, you do not file the LIC CC1 for that portion. You provide verification from the bank or escrow holder listing the asset type and dollar amount.2California Department of Insurance. Business Entity Limited Liability Company Requirements A split arrangement means an LIC CC1 for the insured portion and separate bank verification for the escrowed portion.
What Goes on the Form and Who Signs It
The LIC CC1 must be completed and signed by a representative of the insurance company, not by a member, manager, or officer of the LLC.3California Department of Insurance. Certification of Coverage for Limited Liability Companies This is the single most common reason filings get rejected. You give the information to your E&O carrier, and the carrier’s authorized representative signs, titles, and dates it.
Have the following ready for your insurer:
- The full legal name of the LLC exactly as it appears on your California insurance license, with street address, city, state, and ZIP
- Your CDI business entity license number
- The E&O insurance company name
- The policy number or numbers providing coverage
- Policy effective and expiration dates
- Whether the policy is blanket or individual
- The number of licensees rendering professional services on behalf of the LLC, since that number drives the required coverage amount
Every name should match your license and policy exactly. Small discrepancies between the form and CDI’s records cause processing delays. Download the current revision from the CDI Producer Licensing Bureau forms page before each filing so you are not using an outdated version.
Where to Send It
Submit the completed form to:
California Department of Insurance
Producer Licensing Bureau
Attention: LLC Processing
300 Capitol Mall
Sacramento, CA 95814-43093California Department of Insurance. Certification of Coverage for Limited Liability Companies
Fax to (916) 327-6907 or email to cdibena@insurance.ca.gov are both accepted and typically faster. Many carriers generate the signed form electronically and transmit it directly.
Allow about one to two weeks for an electronic submission to reach an analyst, and a similar window for paper.4California Department of Insurance. Weekly Progress Status CDI asks that you wait 10 business days before calling the Business Entity Unit at (916) 492-3069 for a status update.5California Department of Insurance. Business Entity Frequently Asked Questions
CDI does not list a separate fee for the certification form itself, though initial license application fees apply when the form is filed as part of a new business entity application. All CDI filing fees are non-refundable under California Insurance Code Section 1751.5.6California Department of Insurance. Licensing Fees
The March 31 Annual Deadline
The LIC CC1 is not a one-time document. Every year, your E&O insurer completes and signs a fresh copy confirming the policy is still in effect, and it must reach CDI by March 31.2California Department of Insurance. Business Entity Limited Liability Company Requirements Build in time for the carrier to prepare and sign the form before that date.
If your licensee count has changed since last year, the new certification must reflect the current number. Going from four to six licensees raises the minimum from $500,000 to $600,000, and the underlying policy must already carry the higher limit before your insurer signs the certification.
What Happens If Coverage Lapses or You Miss the Deadline
Under Section 1647.5(e), the Insurance Commissioner can summarily inactivate your LLC’s license for failing to comply with the security requirements. No hearing is required first. When a policy expires or is canceled, the effective date of inactivation is the date coverage actually stopped, so your license may have been inactive for every day between the lapse and CDI’s action.1California Legislative Information. California Insurance Code 1647.5
CDI sends a certified letter to the LLC’s address on file within 10 working days of inactivation. You then have 30 days from the inactivation date to show compliance, pay any fees and penalties, and submit new company appointment forms, bonds, and business entity endorsements as needed to reactivate the license.1California Legislative Information. California Insurance Code 1647.5 Miss that 30-day window and the path to reinstatement becomes considerably harder.
A licensee who willfully causes a false or misleading certification to be filed faces administrative penalties up to and including license suspension or revocation after a hearing.1California Legislative Information. California Insurance Code 1647.5
Mid-Year Changes That Trigger a New Filing
Switching E&O carriers during the year means the new insurer should complete a fresh LIC CC1 so there is no gap in certified coverage on CDI’s records. If your current insurer cancels or non-renews, the carrier is independently required to notify the Commissioner within 10 days, but you should still contact the Business Entity Unit directly to confirm CDI received the notice and to find out what documentation needs to accompany your replacement coverage.
Adding licensees during the year can push your required coverage above your existing policy limits. When that happens, you need an updated policy and a new LIC CC1 showing the higher amount. CDI does not send reminders for mid-year changes. The obligation to stay in compliance at all times rests with the LLC.