The California Department of Insurance (“DOI”) has issued a bulletin clarifying Assembly Bill 1639, which takes effect January 1, 2008.  The new law affects resident and non-resident producers transacting surplus lines business.  All Fire and Casualty Broker-Agents transacting surplus lines business and transacting business on behalf of Surplus Line Broker Organizations must now obtain Surplus Line Broker Licenses.  Previously, California allowed licensed Fire and Casualty Broker-Agents to operate under Surplus Line Broker Organizations’ licenses, now producers must be individually licensed.  Furthermore, all licensed Surplus Lines Brokers and Special Lines’ Surplus Line Brokers must be licensed California Fire and Casualty Broker-Agents.  The new law has no effect on producers not transacting surplus lines business or not transacting business on behalf of Surplus Line Broker Organizations.  The new law also streamlines the application process and reduces the original application and renewal fees.