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When an agent's license is suspended or revoked because the licensee is found to be in violation of a state law

a. the licensee must post financial guarantees
b. all policies sold by the licensee are invalidated
c. the license will automatically be reinstated in six months
d. the licensee may be assessed the administrative costs incurred by the Department

User Haff
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1 Answer

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Final answer:

When an agent's license is suspended or revoked because of a violation of state law, the licensee must post financial guarantees, all policies sold by the licensee are invalidated, and they may be assessed the administrative costs incurred by the Department.

Step-by-step explanation:

When an agent's license is suspended or revoked because the licensee is found to be in violation of a state law:

  • (a) the licensee must post financial guarantees
  • (b) all policies sold by the licensee are invalidated
  • (d) the licensee may be assessed the administrative costs incurred by the Department

None of the statements mention that the license will automatically be reinstated in six months. Therefore, option (c) is incorrect.

It's important to note that a suspended or revoked license means that the licensee is temporarily or permanently prohibited from conducting the licensed activities.

User Sarmahdi
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