Where I live you can't sell them. You renew them each year and pay the extra $5. If you don't they are taken out of your name and are available to who ever wants them.

What department are car insurance agents in the state of California licensed by?

Just wondering, so that I could submit a formal complaint on a car insurance agent. THanks so much!

what state are you in ? in most states you can cancel the insurance if your car is stolen but need to wait a reasonable amount of time for them to recover the vehicle and you get a refund starting the day you cancel
you'd need to check state aw regarding insurance so see what the law in for your state but ask the agent to give you a copy of that regulation he is talking about that says your license would be suspended and if he can't show you the law tell him you will take him to small claims court

you won't get a refund for any money you paid before the car is stolen , you had use of the car and the insurance had to be active so there won't be any retroactive refund .

A few violations... OK! I can assure you of one thing, the cheapest insurance you can get will be the insurance company that will insure you. They look at your record (and you are required to tell them) and the next thing you will hear will be your answer "NO" we do not want you.