State RegulationsVA specificDifficulty 2/5
A consultant holds a Virginia nonresident consultant license issued under Virginia's reciprocity rules. The consultant's home state later suspends the consultant's home-state license for a disciplinary violation. What happens to the Virginia license?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Va. Code § 38.2-1845 links the nonresident consultant license to the home-state credential: any license issued to a nonresident under that section is terminated at any time the nonresident's equivalent authority in the home state is terminated, suspended, or revoked. The home state remains the primary regulator, and Virginia's credential rises and falls with it. The Virginia Bureau of Insurance tracks home-state status through the national producer database rather than running a separate disciplinary review.
Why the other options are wrong
- A) The license does not survive to renewal once the home-state authority is suspended.
- B) Virginia's original background review does not decouple the nonresident license from the home-state credential.
- C) There is no automatic conversion mechanism; the statute provides termination, not restriction.
Memory hook
Home-state discipline travels — lose it there, lose it in Virginia.