State RegulationsPA specificDifficulty 2/5
A producer whose license was revoked continues to solicit insurance applications using his former agency's name, and the agency's owner knowingly looks the other way. What exposure exists?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Transacting insurance without a license is a prohibited act under 40 P.S. § 310.11, and the prohibition reaches both the unlicensed actor and those who knowingly allow or aid the conduct. The revoked producer cannot launder his activity through the agency's name, and the agency owner's deliberate indifference is its own exposure. The Pennsylvania Insurance Department may proceed against both the individual and the entity.
Why the other options are wrong
- B) An agency license does not blanket-cover individuals whose own licenses have been revoked; each person's authority stands or falls independently.
- C) Agencies and their principals can be disciplined for knowingly permitting unlicensed selling; entity status is no shield under 40 P.S. § 310.11.
- D) Prompt delivery of premiums does not legalize solicitation by a revoked licensee; the act of transacting without a license is the violation.
Memory hook
Revoked license plus continued selling equals two violators: the seller and the silenter.