Legal Question in Insurance Law in California
Can I offer my own relocation insurance?
I want to offer my own relocation insurance -- although I don't want to call it insurance and would likely call it relocation services. Subscribers would pay me a flat fee of $20 monthly, and if they lost their job and were forced to relocate greater than 150 miles, I would pay them a one time amount of $4000. Is this legal, and what business structure would you recommend I use (LLC, INC, etc.)
2 Answers from Attorneys
Re: Can I offer my own relocation insurance?
It is insurance and you must be licensed. Look at Ins. Code Sections 113 and 12100 regarding credit and financial guarantee insurance. This is highly regulated, with minimum financial requirements, etc.
Re: Can I offer my own relocation insurance?
Whether you call it insurance has nothing to do with whether the service you describe actually *is* insurance -- which you clearly realize it is. The insurance industry is heavily regulated, and there are many requirements you would have to meet.
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