State RegulationsTX specificDifficulty 1/5
TDI has revoked a Texas general lines agent's license for violating the Insurance Code. What is the effect of the revocation?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 4005.101, the Commissioner may revoke a license for a violation of the Insurance Code or of a Department rule or order. Revocation terminates the license itself rather than merely pausing it, so the former licensee must immediately stop soliciting, negotiating, selling, and servicing Texas insurance and may not represent himself as licensed. Practical consequence: continued activity after revocation is unlicensed activity, and both the individual and any insurer that knowingly accepts that business are exposed to further enforcement action.
Why the other options are wrong
- B) Revocation does not leave servicing rights intact; the authority to service in-force business depends on holding a license, and that authority ends when the license is revoked.
- C) That describes a suspension, not a revocation. A revoked license is not reinstated on its own; the person must qualify again and obtain a new license.
- D) An appointment confers no authority once the underlying license is gone; the appointing insurer must terminate the appointment and stop accepting the agent's business.
Memory hook
Revoke means the license is gone; suspend means the license is parked.