State RegulationsTX specificDifficulty 1/5
Which of the following is a ground on which the Commissioner may suspend or revoke a Texas general lines agent's license?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 4005.101-.102, the Commissioner may discipline a license holder for violating the Insurance Code, a Department rule, or a Commissioner's order, and obtaining or attempting to obtain a license by fraud or misrepresentation violates the Code's licensing provisions. Practical consequence: a license procured by dishonesty is subject to suspension or revocation, and the same conduct also supports denial of any later application.
Why the other options are wrong
- B) A production quota is a contractual matter between the agent and the insurer; missing it is not a violation of the Insurance Code.
- C) A complaint is only an allegation. Discipline requires a finding that the Code, a rule, or an order was violated, not merely that a complaint was filed.
- D) Termination by an appointing insurer is a business decision that may have to be reported, but termination standing alone is not a statutory ground for license discipline.
Memory hook
Discipline needs a Code, rule, or order violation, not just an unhappy client or insurer.