State RegulationsTX specificDifficulty 2/5
The department issues an order suspending an agent's license under TIC 4005.101-.102 and 4005.105. What is the effect while the suspension is in effect?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under TIC 4005.101-.102 and 4005.105, suspension is a temporary bar: the licensee must cease soliciting and transacting insurance business while the suspension runs. Unlike revocation, suspension does not destroy the license; it lifts at the end of the stated period, and the agent may then resume business if the license has been renewed and every condition of the order has been satisfied. Continuing to solicit during a suspension is itself a separate violation that can push the department toward revocation.
Why the other options are wrong
- A) A suspended license is not a live license; soliciting during the suspension is prohibited and is an additional violation.
- C) Suspension halts the agent's authority to transact business; there is no mechanism by which appointments simply continue with commissions held in trust.
- D) That describes revocation rather than suspension; a suspension ends after its stated period and does not bar future licensing.
Memory hook
Suspension is a pause: stop selling, then resume when the clock runs out.