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Which of the following may the Commissioner not do if he/she cancels or revokes an insurance license?

a. Suspend the license for up to 5 years
b. Issue a cease and desist order
c. Order the licensee to pay an administrative penalty and/or make restitution
d. Refer the matter to the Attorney General for enforcement of any unpaid penalty or restitution

User Mou
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1 Answer

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Final answer:

The Commissioner cannot suspend an insurance license for up to 5 years after it has been cancelled or revoked; instead, they may issue cease and desist orders, impose penalties, demand restitution, or engage the Attorney General for enforcement.

Step-by-step explanation:

When the Commissioner cancels or revokes an insurance license, there are several actions they may take. However, the action that the Commissioner cannot take is suspending the license for up to 5 years after it has already been cancelled or revoked. Once a license is cancelled or revoked, it is no longer active, making suspension unnecessary and illogical. Instead, the Commissioner can issue a cease and desist order to immediately stop any illegal practices. Furthermore, the licensee can be ordered to pay an administrative penalty and/or make restitution for any wrongdoing. In cases where penalties or restitution are not paid, the Commissioner has the authority to refer the matter to the Attorney General for enforcement.

User Chengbo
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