State RegulationsTX specificDifficulty 3/5
TDI suspends a Texas agent's license for a stated period instead of revoking it. Which statement correctly describes the suspension?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
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.