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State RegulationsVA specificDifficulty 2/5

For which of the following may the Commission suspend or revoke a Virginia producer's license?

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Answer & full 3-part explanation (select an option above, or peek)

Why C is correct

Va. Code § 38.2-1821 authorizes the Commission to take license actions — probation, suspension, or revocation — for statutory grounds such as obtaining or attempting to obtain a license through misrepresentation or fraud. The integrity of the licensing process is the state's core concern: a credential secured by deception is grounds for removing it. Ordinary business outcomes like missing sales targets or losing one appointment do not implicate the statutory grounds for discipline.

Why the other options are wrong

  • A) A voluntary sales goal is a private business expectation, not a statutory ground for license discipline under Va. Code § 38.2-1821.
  • B) Appointment terminations affect a producer's authority with one insurer; they do not by themselves justify suspending or revoking the license.
  • D) Product-mix choices are business decisions; the Commission disciplines legal misconduct, not sales strategy.

Memory hook

Lie your way into a license and the Commission can take it right back out.

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