California Code, Insurance Code - INS § 1743

The lapse or suspension of any license by operation of law, by failure to renew or by its voluntary surrender shall not deprive the commissioner of jurisdiction or right to institute or proceed with any disciplinary proceeding against such license, to render a decision suspending or revoking such license or to establish and make a record of the facts of any violation of law for any lawful purpose.  No such disciplinary proceeding shall be instituted against any license after the expiration of five years from the termination of such license.