Suspension of an insurance broker's corporate status is very serious. The broker:

• Cannot file lawsuits or defend itself against lawsuits,
• Cannot enter into or enforce contracts,
• Can lose its corporate name if someone reserves its name during the suspension period, and
• Can lose its right to obtain an extension to file tax returns.

If an insurance broker fails to revive its corporate status, the Secretary of State can administratively dissolve the corporation if it has been suspended for 48 months or more.

Corporations can have their corporate status suspended for any of the following reasons:

• Failure to file their tax returns,
• Failure to pay their taxes, or
• Failure to file a Statement of Information with the Secretary of State.

You can verify if your insurance broker has been suspended by visiting the website provided by the California Secretary of State.