A Texas agent lets his license expire and, 90 days later, still has not completed continuing education, paid the deficiency fines, or renewed. Under TIC 4003.006-.007, what is the status of the license?

Why C is correct

Under the license expiration and renewal provisions of Texas Insurance Code Chapter 4003, a license that has been expired for 90 days without the required continuing education, deficiency fines and renewal is cancelled, and at that point the agent cannot renew but must file a new application and meet the current licensing requirements. The 90-day window is what separates a late renewal from a cancelled license, so an agent who is short on hours should renew and pay the deficiency fine rather than wait and lose the license.

Why the other options are wrong

• A) The consequence is cancellation, not a suspension that ends when the term would have ended.
• B) Completing the hours late does not reinstate a cancelled license; the agent must reapply.
• D) Renewal is not available indefinitely; once 90 days pass without compliance the license is cancelled.

Memory hook

90 days late without CE, fines and renewal means cancelled, start over.

Why B is correct

Under TIC 4003.001, 4003.004 and 4003.006-.007, an expired license may be revived only if the agent completes the deficient continuing education, pays the applicable fees and CE deficiency fines, and renews. If the agent has not done all of that within 90 days after the expiration date, the license is cancelled rather than merely lapsed. The consequence is severe: a cancelled license cannot be reinstated, so the agent must start over with a new application, including re-qualification.

Why the other options are wrong

• A) There is no indefinite inactive grace period; 90 days after expiration without the required education, fines and renewal, the license is cancelled.
• C) A temporary license is a separate instrument issued under TIC 4001.151-.156 to permit solicitation pending licensing; it is not a substitute for a lapsed license.
• D) The outcome is cancellation rather than suspension, and reinstatement is no longer available once the 90-day period has run.

Memory hook

Expired plus 90 days of inaction equals cancellation, and cancellation means starting over.