Question

An insurance producer whose license has been revoked continues to provide insurance services. Which of the following is TRUE?

A) The producer's actions are legal as long as they inform clients of their revoked license.
B) The producer's actions are illegal and may result in penalties or legal action.
C) The producer may continue to sell insurance but only to close friends and family.
D) The producer can reapply for a new license at any time.

Answer 1

The producer's actions are illegal and may result in penalties or legal action.

Step-by-step explanation:

The correct answer is B) The producer's actions are illegal and may result in penalties or legal action. When an insurance producer's license has been revoked, it means that they are no longer authorized to provide insurance services. Continuing to do so would be considered illegal and can lead to penalties or legal action.

In the insurance industry, licenses are granted by the state's insurance department, and revocation usually occurs due to violations of insurance laws or regulations. It is important for insurance producers to adhere to the licensing requirements and ensure that their licenses are maintained and in good standing.