Under TIC 4005.101-.102, which of the following is a ground on which TDI may deny an application for a Texas agent license?

Why D is correct

Under TIC 4005.101-.102 the Commissioner may refuse to issue a license when an applicant fails to meet the statutory qualifications or has engaged in disqualifying conduct, including a material misstatement or concealment of fact in the application, fraud or dishonest conduct, or a conviction that bears on the applicant's fitness to hold a license. A denial is entered only after notice and an opportunity for a hearing, and it is not cured simply because the applicant later obtains an appointment or insurance coverage.

Why the other options are wrong

• A) Errors and omissions coverage is not a statutory qualification for holding the license.
• B) An appointment follows licensure, so not having one in advance is not a ground for denial.
• C) Representing multiple insurers is ordinary practice and is not a disqualifying factor.

Memory hook

Misstate a material fact on the application and the license is denied.

Why A is correct

Under TIC 4003.001, TDI may deny a license when the applicant fails to satisfy the qualifications set out in the Insurance Code, has made a material misstatement or suppressed material information in the application, or has engaged in conduct that would support suspension or revocation under TIC 4005.101-.102. Grounds such as lacking an appointment, choosing a territory, or having no continuing education history are not statutory disqualifications: an appointment follows licensure and is filed by the insurer, and continuing education is a renewal obligation.

Why the other options are wrong

• B) An appointment is filed by the insurer after licensure, so not having one cannot be a ground for denying the license.
• C) TDI does not deny licensure based on which Texas county the applicant plans to work in.
• D) Continuing education is required to renew a license already held, not to obtain an original license.

Memory hook

Denial needs a statutory disqualifier — bad application answers or disqualifying conduct, not missing business trappings.