State RegulationsMI specificDifficulty 2/5
The director is deciding whether to suspend or revoke a Michigan producer's license. Which activity is a ground for that discipline?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under M.C.L. 500.1209 and M.C.L. 500.1239, misrepresenting policy terms or benefits and committing unfair trade practices are grounds for suspension, revocation, or refusal to issue or renew a license. Appointing with multiple insurers and earning commissions while licensed are lawful; only the misrepresentation exposes the license to discipline.
Why the other options are wrong
- B) Representing several different licensed insurers is normal, lawful producer practice.
- C) Earning commissions while properly licensed is the producer's ordinary compensation.
- D) Advertising rates that were accurately filed is lawful conduct, not a ground for discipline.
Memory hook
Misrepresent a policy, risk the license.