State RegulationsOH specificDifficulty 3/5
An Ohio producer's license was suspended last month for nonrenewal, but he continues to sell life policies from his Toledo office, telling clients he is still licensed. Which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Suspension removes the producer's authority to transact insurance, so his continued sales are unlicensed transactions under ORC 3905.02, exposing him to the first-degree misdemeanor classification of ORC 3905.99(D) in addition to further disciplinary action. Representing to clients that he is still licensed compounds the problem.
Why the other options are wrong
- A) The insurer's own authority does not cure the producer's lack of a license; ORC 3905.02 regulates the person transacting the business.
- C) A suspended license confers no authority; suspension and revocation both strip the right to sell.
- D) The unlicensed producer is directly exposed; ORC 3905.99(D) criminalizes his own acts, separately from any insurer liability.
Memory hook
Suspended means unauthorized — selling then is a crime.