State RegulationsTX specificDifficulty 2/5
Which conduct is a ground for the department to suspend or revoke a Texas agent license under TIC 4005.101-.102?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under TIC 4005.101-.102, the department may suspend, revoke or refuse to renew a license for conduct showing the licensee is untrustworthy or unfit, including misappropriating or converting money belonging to an insurer, an insured or an applicant. Handling other people's money faithfully is the core fiduciary duty of an agent, and a breach of it ranks among the most serious violations. Beyond the license sanction, the conduct can also expose the agent to restitution and to an administrative penalty.
Why the other options are wrong
- A) An agent is free to represent a single insurer; limiting the number of appointments is not misconduct.
- B) There is no production quota in the Code; failing to place a volume of business is a contractual matter with the insurer rather than a license sanction.
- C) An agent may decline an applicant the agent considers a poor risk; underwriting judgment is not a disciplinary ground.
Memory hook
Touch a client's money and the license is the least of your problems.