TDI suspends a Texas agent's license for a stated period instead of revoking it. Which statement correctly describes the suspension?

Why D is correct

Under TIC 4005.101-.102, suspension and revocation are distinct sanctions: a suspension withdraws the licensee's authority to act under the license for the period set out in the Department's order, and the license may be reinstated once the terms of the order are satisfied. The license is not destroyed, it is disabled for a defined window. Practical consequence: during the suspension window the agent cannot transact insurance at all, and anything written in that period is written without authority.

Why the other options are wrong

• A) That is revocation, not suspension. A suspension leaves the license in existence and contemplates a return to licensed status.
• B) The two sanctions differ in kind, not in what the agent keeps; neither suspension nor revocation turns on retained commissions.
• C) Requesting a hearing does not hold a suspension order in abeyance by itself; the order takes effect on its own terms.

Memory hook

Suspension is a timeout; revocation is a termination.

Why B is correct

TIC 4005.101-.102 distinguish suspension from revocation by duration and finality: a suspension removes the agent's authority for a stated period and the license can be reinstated once the period and any conditions are satisfied, while a revocation ends the license. Both are imposed by the Commissioner, and both require notice and an opportunity for a hearing before they take effect; an agent who keeps soliciting during a suspension commits a further violation.

Why the other options are wrong

• A) Both sanctions attach to the license itself, not to continuing education credit.
• C) The durations are reversed; revocation is the permanent sanction and suspension is temporary.
• D) Insurers appoint and terminate appointments; only the Commissioner may suspend or revoke a license.

Memory hook

Suspension is a time out; revocation means the license is gone.

Why A is correct

Under TIC 4005.101-.102 and 4005.105, TDI may suspend a license for a stated period or revoke it outright. A suspension is temporary: the agent must stop transacting insurance while it runs and the license revives when the period ends. A revocation terminates the license, meaning the agent may not transact at all until qualifying and being relicensed. In either case the agent must stop soliciting while the order is in effect, and the action is reportable to TDI by the license holder.

Why the other options are wrong

• B) This reverses the two sanctions: revocation is the permanent action and suspension is the temporary one.
• C) Retaking the examination may be required to get a new license after revocation or cancellation; a suspension does not itself impose an exam.
• D) Either sanction may reach a single line of authority or several lines, as the order states; that is not what separates them.

Memory hook

Suspension is a timeout; revocation is a termination you must re-qualify to undo.