When is an agent's license considered inactive?

An agent's license is considered inactive when all renewal fees are paid, but there has been a termination of all appointments. This means that while the agent has taken care of any necessary financial obligations regarding their license, they are not currently authorized to conduct business because they no longer hold any appointments from insurance carriers. Appointments are crucial as they grant the agent the authority to represent the insurance company and sell their products. Without these appointments, the license remains in a status that does not allow the agent to engage in insurance transactions, even if the agent has satisfied the renewal fee requirement.

The other options describe situations that do not accurately reflect an inactive license status under California law. For instance, if the license has not been renewed, it may be considered expired rather than inactive. Simply not executing transactions for a year does not automatically make the license inactive; it is the status of the appointments that determines current eligibility to practice. Lastly, an agent choosing to stop practicing does not directly affect their license status unless they also terminate the required appointments or fail to renew their license.