State RegulationsTX specificDifficulty 2/5
TDI revokes a Texas agent's license after a contested proceeding. Under TIC 4005.105, what is the agent's position with respect to continued insurance activity?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under the license discipline provisions of Texas Insurance Code Chapter 4005, once a license has been revoked or suspended the former licensee has no authority to act: soliciting, negotiating, servicing policies for compensation, or accepting commissions on insurance business are all licensed activities, and continuing them supports additional sanctions, including administrative penalties and restitution orders. The practical consequence is that the agent must stop immediately and arrange for a properly licensed and appointed person to take over servicing of the book of business.
Why the other options are wrong
- A) Revocation ends the authority to act at once; there is no wind-down privilege through the end of the term.
- C) Paying a penalty does not create authority to act without a license.
- D) An insurer cannot restore authority that TDI has taken away; only TDI can restore the license.
Memory hook
Revoked means stop today, there is no wind-down period.