Connecticut Life Producer Practice exam

Under what grounds can a license be suspended or revoked?

1. Noncompliance with state advertising laws

2. Willful violations of the Insurance Code or other laws

3. Failure to complete continuing education requirements

4. Inability to meet sales quotas

The correct answer is: Willful violations of the Insurance Code or other laws

A license can be suspended or revoked for willful violations of the Insurance Code or other laws because these actions directly undermine the integrity of the insurance profession and the regulatory framework that governs it. Insurance producers are expected to operate within the legal standards set forth to protect consumers and maintain fair practices in the industry. When an individual willfully disregards these regulations, it demonstrates a clear lack of professionalism and can harm clients' interests, leading to the need for disciplinary actions such as license suspension or revocation. Noncompliance with state advertising laws and failure to complete continuing education requirements are important issues that could lead to penalties, but they may not necessarily result in immediate suspension or revocation unless they are severe or repeated offenses. Inability to meet sales quotas is often a business performance issue rather than a legal one and is generally not a valid ground for disciplinary action against a license.