State RegulationsTX specificDifficulty 2/5
TDI revokes a Texas life and health agent's license. What is the immediate consequence for that agent's appointments and insurance activity?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under TIC 4005.101-.102 and 4005.105, revocation terminates the license, and authority to act for an insurer requires both a valid Texas license and an appointment on file with TDI. With the license gone, every appointment fails and continuing to solicit or service insurance would be acting without a license, which carries its own sanctions. The appointing insurers must also report the termination of the appointments to TDI.
Why the other options are wrong
- A) Revocation takes effect immediately; there is no wind-down period that runs to a policy anniversary.
- C) An appointment cannot survive the license it depends on, no matter which party filed it.
- D) An insurer's consent cannot authorize activity by a person whose license has been revoked.
Memory hook
No license means no appointment means no business — effective immediately.