Final answer:
A claim being paid on an agent's behalf does not automatically result in the revocation of their license. License revocation typically occurs after serious violations, with each case assessed individually.
Step-by-step explanation:
The question at hand is asking about the consequences on an agent's license when a claim is paid on their behalf. This falls under regulatory actions in the insurance industry.
The false is the correct answer. Having a claim paid on an agent's behalf does not automatically lead to their license being revoked. Revocation of a license would typically occur following a serious violation of insurance laws or regulations, unethical behavior, or criminal activity. The payment of a claim on behalf of an agent might be due to a variety of reasons, including errors and omissions on the agent’s part, but this in itself is not enough for automatic license revocation. Each case is evaluated individually, and the consequences depend on the nature and severity of the incident that led to the claim.