California Life and Health Insurance Practice Exam

What must Jim do when applying for an insurance agent license with an expunged misdemeanor conviction?

1. Ignore the conviction

2. Provide proof of expungement

3. Disclose the conviction

4. Wait five years before applying

The correct answer is: Disclose the conviction

When applying for an insurance agent license, Jim is required to disclose any misdemeanor conviction, even if it has been expunged. This is an important aspect of the licensing process because state insurance regulators prioritize transparency and honesty. The law often mandates applicants to provide a full account of their criminal history, which includes any convictions that may have been expunged. Understanding the rationale behind this requirement, regulators aim to ensure that insurance agents exhibit the integrity and trustworthiness necessary for handling sensitive financial matters. Disclosing past convictions allows for a comprehensive evaluation of an applicant’s character and fitness for the role. In this context, other suggested actions, like ignoring the conviction or simply waiting a period before applying, do not align with the legal obligations tied to the licensing process and could lead to complications or denials in Jim's application. Providing proof of expungement would not exempt him from disclosing the conviction itself, but rather serve as a supporting document that shows he has addressed the issue legally.