Criminal convictions, unauthorized enrollments,
and illegal sales among violations
Officials warn of possible civil and criminal penalties
More than a dozen Korean American insurance agents in California have had their licenses revoked after state regulators uncovered various illegal practices, including unauthorized policy sales across state lines, enrolling clients without consent, and even felony convictions.
According to the California Department of Insurance (CDI)’s disciplinary report released on November 5, over ten Korean-speaking agents were stripped of their licenses in 2025 for serious violations of state insurance regulations.
⚖️ Sex crime conviction leads to license revocation
One agent, identified only as H, who obtained a license in 2007, was convicted of lewd acts with a minor and sexual assault in a state court last year after entering a “no contest” plea — legally equivalent to a guilty verdict.
The CDI said it attempted to contact the agent to allow an explanation but received no response, and the license was ultimately revoked in January 2025.
🚫 Selling policies without consent or authorization
Another agent, M, licensed in 2023 and affiliated with a major insurance company, was terminated after allegedly purchasing insurance policies in Colorado, Michigan, Arizona, and Arkansas without clients’ permission.
When the CDI summoned M to appear for questioning, the agent failed to comply, resulting in the permanent revocation of the license in July.
Regulators and the insurer are reportedly considering criminal charges due to consumer harm.
Similarly, agent Y, who also obtained a California license in 2023, was disciplined for enrolling a client in a renter’s insurance policy without consent in Washington State, falsely claiming it would provide “multi-account discounts.”
The client, who owned their home, said they had never authorized the purchase.
💸 Unlicensed sales and illegal service fees
An individual identified as C, who lacked a broker’s license, was found to have sold insurance products in multiple states — including California — while working under a large insurer, P Company.
Investigations found that C charged clients about $100 in additional service fees per transaction, pocketing the money illegally.
The CDI imposed $5,000 in fines per affected customer and an additional penalty equal to five times the total amount of the unlawful fees.
🏛️ Regulators warn of “serious consequences”
The California Department of Insurance stressed that abusing an insurance license to enroll customers without consent or charge unauthorized fees can result not only in license revocation but also civil and criminal liability.
In total, the CDI said it issued revocations or major disciplinary actions against more than 600 agents statewide this year alone.
