State RegulationsTX specificDifficulty 2/5
TDI issues an order suspending a Texas agent's license instead of revoking it. What is the difference between the two sanctions?
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Answer & full 3-part explanation (select an option above, or peek)
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.