Section 4

Question 0

When must insurance records for insurance agents and insurance brokers be made available to the insurance Commissioner?

1. At all times
2. One month after policy insurance
3. Within 30 days of a written request by the Commissioner
4. Annually, and submitted with the proper paperwork

Answer 0

At all times

1) Statement of fact.

Question 1

A representation as to the past, present, or future is a/an: @

1. Warranty
2. Verified promise
3. Unverified fact
4. Misrepresentation

Answer 1

Verified promise

2) Representations relating to insurability are considered to be promises.

Question 2

When may a representation be withdrawn? @

1. It can never be withdrawn
2. Only after the policy is in effect
3. At any time as long as both parties agree
4. Only before the insurance is in effect

Answer 2

Only before the insurance is in effect

4) Statement of fact

Question 3

RW and Associates is an agency which represents BLG Insurance Corporation. RW and Associates may leave the name BLG Insurance Corporation in its advertisements by clearing stating the relationship between the two business in any of the following ways, EXCEPT: @

1. RW and Associates representing BLG Insurance Corporation
2. RW and Associates placing business through BLG Insurance Corporation
3. RW and Associates underwriting for BLG Insurance Corporation
4. RW and Associates using the services of BLG Insurance Corporation

Answer 3

RW and Associates underwriting for BLG Insurance Corporation

3) Agents and agencies cannot claim that they are underwriting for the insurer.

Question 4

A representation as to the future is considered which of the following?

1. Promise
2. Provision
3. Liability
4. Description

Answer 4

Promise

1) See question 1 above. It is common for several versions of the same question to appear on exam.

Question 5

An insurer that has a Certificate of Authority in California is:

1. Authorized
2. Admitted
3. Allowed
4. Approved

Answer 5

Admitted

2) “Admitted” is the correct terminology.

Question 6

The execution of a policy involves which of the following?

1. Signing a covering note
2. Filling out an application
3. Canceling a policy
4. Discussing policy limits with the client

Answer 6

Signing a covering note

1) Execution involves putting a policy into effect.

Question 7

The negotiation of a policy involves which if the following?

1. Adding an endorsement to the policy
2. Signing an application form
3. Making a premium payment
4. Sending the prospect an email suggesting that they buy a certain type of policy

Answer 7

Sending the prospect an email suggesting that they buy a certain type of policy

4) Negotiation includes product recommendations

Question 8

An applicant for insurance does not reveal information the the insurer would rely upon to issue the policy, this is a/an: @

1. Boycott
2. Concealment
3. Intimidation
4. Coercion

Answer 8

Concealment

2) Specifically, this is concealment, but answer “C” is the best choice available. Misrepresentation by Omission.

Question 9

The method that the California DOI uses to approve or disapprove rate fillings for various types of insurance such as homeowners and automobile is known as? @

1. Open competition method
2. File and use method
3. Mandated rates method
4. Prior approval method

Answer 9

Prior approval method

4) Rate approval method that is most commonly used in the State of California.

Question 10

An organization will cease to exist as an entity eligible to hold a license for all of the following reasons, EXCEPT:

1. Termination of an association
2. Dissolution of a co-partnership
3. Dissolution of a corporation
4. Termination of a key employee

Answer 10

Termination of a key employee

4) Termination of a key employee will not cause the organization to cease to exist.

Question 11

All of the following are areas that market regulation covers, EXCEPT: @

1. Sales
2. Employee training
3. Underwriting
4. Rate-making

Answer 11

Employee training

2) Market regulation covers the insurer’s business and sales conduct and is examined by the Market Conduct Bureau.

Question 12

Which of the following statements is true regarding insurers with admitted status I California? @

1. They must file for an exemption with the insurance commissioner if they wish to use race, color, religion, or national origin as a rating condition
2. They may not use race, color, religion, or national origin as a condition to use higher rates
3. They may use race, color, religion, or national origin as a condition to use higher rates

Answer 12

They may not use race, color, religion, or national origin as a condition to use higher rates

2) Unfair discrimination is never permissible.

Question 13

All of the following are requirements for a notice by mail to an insured by an insurer, EXCEPT: @

1. Notice must be sent with return receipt required
2. Noticed must be addressed to the person being notified
3. Postage must be prepaid
4. Notice must be mailed to the residence or principle place of business

Answer 13

Noticed must be addressed to the person being notified

1) Policies sent through the mail require a return receipt. There is no such requirement for general notices.

Question 14

What is one the main factors that the insurance Commissioner uses while determining whether a rate is excessive or unfairly discriminatory? @

1. How long the insurer has been admitted to do business in the state
2. Complaint history of the insurer by insured’s
3. The degree I competition
4. Whether the rate mathematically reflects the insurance company’s investment income

Answer 14

Whether the rate mathematically reflects the insurance company’s investment income

4) The insurer’s investment income is included in the calculation of premium (rate-interest +expenses). If the rate does not mathematically reflect the insurer’s returns on their investments the insurer is calculating premium incorrectly an unfairly.

Question 15

An agent who diverts/commingles premium dollars for the agent’s own use is guilty of: @

1. Misrepresentation
2. Fraud
3. Forgery
4. Theft

Answer 15

Theft

4) Theft is any act of stealing.

Question 16

Every admitted insurer in the state of California is required to maintain a unit or division to investigate which of the following?

1. Possible non-compliance with CA rate laws
2. Possible fraudulent claims made by insured’s
3. Possible non-justifiable discrimination
4. Possible arson claims

Answer 16

Possible fraudulent claims made by insured’s

2) Required by the department of insurance. CIC 1875.20

Question 17

What will happen when an agent’s appointment to an insurance company is terminated and the agent has no other appointments with any other insurance company? @

1. The agent’s permanent license will be terminated simultaneously
2. The agent’s permanent license remains in force for only 60 more days unless the agent becomes reappointed or receives a new appointment letter from another insurer
3. The agent’s permanent license remains fully active until expiration
4. The agent’s permanent license becomes inactive

Answer 17

The agent’s permanent license becomes inactive

4) The appointment (or bond for a broker) activates the license.

Question 18

The CA Insurance Code requires property insurance policies specify all of the following, EXCEPT: @

1. The insured’s risks or perils
2. A description of all the insured property
3. The policy period
4. The insured’s address

Answer 18

The insured’s address

4) The insured’s address will be on the application, but there is no Code requirement that it be on the policy.

Question 19

What steps need to be taken to terminate a licensee’s license that is in the possession of an employer? @

1. The license cannot be terminated prior to the expiration date; it becomes inactive
2. The licensee needs to give written notice of intent to the insurance commissioner
3. The licensee must give written notice to the employer who then sends the license to the insurance commissioner
4. The employer must return the license to the licensee, who then must return the license to the insurance commissioner

Answer 19

The licensee needs to give written notice of intent to the insurance commissioner

2) Licensees can return the license to the Commissioner; employers must give written notice of intent.

Question 20

Under the California insurance code a Surplus lines broker: @

1. Transacts insurance business only with admitted insurers
2. Transacts special in marine insurance
3. Transacts business only with non-admitted insurers
4. Are always employees of insurance companies

Answer 20

Transacts business only with non-admitted insurers

3) This is the definition of a surplus lines broker.

Question 21

What would the Commissioner likely so if an agent induces a client to co-sign a loan?

1. Force the agent to pay the loan back with interest
2. Impose a $1,000 fine
3. Suspend the agent’s license
4. Force the agent to attend a state ethics course

Answer 21

Suspend the agent’s license

3) Statement of fact.

Question 22

Section 770 of the Insurance Code is true regarding unfair or trade practices? @

1. The penalties for misrepresentation and twisting of insurance policies are different
2. The restrictions on the activities of incorporated insurers
3. A travel insurance agent cannot refer business to unincorporated insurers
4. An entity cannot demand the insurance be placed with a particular agency

Answer 22

An entity cannot demand the insurance be placed with a particular agency

4) For example, a lender can require that a borrower purchase insurance, but can NOT demand a particular insurance company.

Question 23

Which of the following describes an insurer who has enough financial recourses only to provide for all of its liabilities and for all reinsurance of all outstanding risks? @

1. Insolvent
2. Solvent
3. Non-participating
4. Guaranteed

Answer 23

Insolvent

1) In order to be solvent, an insurer must not only be able to provide for its liabilities and reinsure capital risks, but must also possess additional assets equivalent to the required paid-in capital.

Question 24

In California, excess and surplus lines coverage needs to be placed through: @ 1. An excess and surplus lines solicitor 2. A surplus lines broker 3. An admitted insurer 4. Lloyds of London

Answer 24

A surplus lines broker 2) Surplus lines relates to specialized property or liability coverage provided by a non-admitted insurer in instances where it is unavailable from insurers licensed by the state.

Question 25

What must a life agent, travel agent, or fire and casualty insurance agents do in order to act as an agent of a particular insurer? @ 1. File proof of licensure with the state 2. Have the agent listed with the appropriate department of the insurer 3. File a notice of appointment with the Commissioner 4. There are no legal requirements as long as the agent is legally licensed

Answer 25

File a notice of appointment with the Commissioner 3) Statement of fact.

Question 26

In the business of insurance, the act of concealment is defined by all of the following statements, EXCEPT: 1. Concealment can be intentional 2. Concealment can be unintentional 3. Concealment is grounds for declination by the insurer 4. Concealment does not occur if no inquiry is made

Answer 26

Concealment does not occur if no inquiry is made 4) Concealment is the intention to withhold or secrete material information- wether an inquiry is made or not.

Question 27

Which of the following statements is not true? A fire and casualty managing agent: @ 1. Does not have the authority to collect premiums from producing broker-agents 2. Has the power to accept or decline risks 3. Has the power to appoint, supervise and terminate the contracts of agents 4. Holds a license as a fire and casualty agent

Answer 27

Does not have the authority to collect premiums from producing broker-agents 1) A managing agent has this authority.

Question 28

Where would an insured that is in the business of importing exotic animals from Africa most likely go to obtain insurance coverage? 1. Alien insurer 2. Excess and surplus lines insurer 3. Foreign insurer 4. State Competitive Fund

Answer 28

Excess and surplus lines insurer 2) Imports and exports are a type of risk a surplus lines broker would handle.

Question 29

What eel must an applicant for a fire and casually license, life agent license, or personal lines agent license complete in addition to pre-licensing classroom study? 1. A sales training course provided by the insurance department 2. A contract law course at any approved college location 3. A diversity awareness course provided by the State of CA 4. A 12 hour course on ethics and the CA code

Answer 29

A 12 hour course on ethics and the CA code 4) This 12-hour course is added to the 40-hour course for Life or Fire & Casualty, or the 20-hour course for Personal Lines for the total needed for licensure. If you have taken the 12-hour course for one license, it does not need to be repeated for another license within several years.

Question 30

Which rate approval filing system is used in California for most lines of insurance? @ 1. Open competition 2. Prior approval 3. File and use 4. Mandatory rates

Answer 30

Prior approval 2) Statement of fact.

Question 31

When is a property and Casualty agent required to inform an insured of any conditions which may be precedent to coverage regarding a Personal Auto Policy? 1. At time of application 2. At renewal 3. At proposal 4. At policy delivery

Answer 31

At time of application 1) although an agent "should" inform the insured of conditions at the proposal state, the agent is "required" to do so at the applications stage.

Question 32

The state law that regulates insurer practices regarding underwriting, sales, rate-marking, and claims handling are called: 1. Market conduct regulation 2. Insurer policing 3. Ethical standards surveillance 4. Standard regulation

Answer 32

Market conduct regulation 1) The Market Conduct Bureau conducts examinations of California licensed insurer's claims-handling practices.

Question 33

The CA insurance code: 1. Requires agents to keep records of any compensation they may have received for their services involved with premium financing 2. Requires agents to provide premium financing services 3. Prohibits agents from receiving compensation for premium financing 4. Sets the percentage of interest that may be charged in a premium finance contract

Answer 33

Requires agents to keep records of any compensation they may have received for their services involved with premium financing 1) Record keeping is one of the main Code requirements.

Question 34

It is a violation of the CA Insurance Code to act as a producer for a non-admitted carrier unless: 1. It is always a violation, no matter what type of producer 2. The producer is surplus lines broker 3. The producer is an insurance solicitor 4. The producer is dually licensed in at least two states

Answer 34

The producer is surplus lines broker 2) Unless a person is licensed as a Surplus Lines Broker, they may not transact any insurance on property located or operations conducted within, or on the lives of residents within the State of California with non-admitted insurers.

Question 35

You are to meet with a small furniture manufacture and make property and liability insurance recommendations. You have insured many risks of this type in the past and have a good idea of what their needs may be. There are several popular ways of determining business loss exposure. Which of the following ways are the least professional and the least likely to correctly identify the loss exposures? You: 1. Meet with key people and complete a loss exposure questionnaire developed for their general type of risk 2. Take a walk through the business to observe operations and work flow, and ask their key people about the company and it's operations 3. Get a copy of all current policies and determine what coverage they have been carrying and how much they have been paying 4. None of the above

Answer 35

Get a copy of all current policies and determine what coverage they have been carrying and how much they have been paying 3) This is a current risk assessment. It is important not to rely solely on past history.

Question 36

Where do most states require insurers to file policy forms? @ 1. The Federal Government Insurance Committee 2. The Independent Association of America 3. The Insurance Department 4. The Insurance Service Office

Answer 36

The Insurance Department 3) In California, it is the California Department of Insurance.

Question 37

What must an insurer do who accepts from an agent who is not specifically appointed by the insurer, and then issues a policy from that application? 1. Forward to the Commissioner a notice of appointment with 14 days of receipt of application 2. Send the agent an appointment approval within 30 days of policy insurance 3. The agent must become an employee of the company within 30 days of receiving application 4. Name the agent to the list of the company's approval agents

Answer 37

Forward to the Commissioner a notice of appointment with 14 days of receipt of application 1) Statement of fact.

Question 38

In the state of CA, no rate will remaining effect if it is considered to be any of the following, EXCEPT: @ 1. Inadequate 2. Unfairly discriminatory 3. Impartial 4. Excessive

Answer 38

Impartial 3) The insurance department in each state regulates policy rates to ensure that they are fair, reasonable, and not discriminatory.

Question 39

What does it mean if an agent's license is inactive? @ 1. The agent can still transact insurance business in CA, but not in any other state until it is reactivated 2. The agent cannot transact any insurance business for which a valid, active license is required 3. The agent can transact insurance business if it is done with another agent's approval 4. The agent can transact any insurance business for which the agent is licensed

Answer 39

The agent cannot transact any insurance business for which a valid, active license is required 2) An inactive license does not permit its holder to transact any insurance for which an active license is required.

Question 40

A representation in an insurance contract qualifies as which of the following? @ 1. An implied warranty 2. An amendment 3. An express warranty 4. A policy provision

Answer 40

An implied warranty 1) Once the contract is agreed, material statements made by the applicant in the application can be assumed to be warranties (i.e. guaranteed to be true). Therefore, representations made prior to agreement are considered to be implied warranties.

Question 41

According to the CA Insurance Code, a binder is deemed a valid insurance policy for the purpose of providing that the insured had the insurance coverage specified in the binder for each of the following types of insurance, EXCEPT: 1. Marine insurance 2. Fire insurance 3. Auto insurance 4. Life insurance

Answer 41

Life insurance 4) Life insurers generally use conditional receipts- not binders.

Question 42

What is required of a broker-agent before appointing an insurance solicitor? 1. Must hold a notice of appointment 2. Must hold a permanent license 3. Must hold a certificate of insurance 4. Must be a domestic insurer

Answer 42

Must hold a permanent license (2) is the correct answer since an insurance solicitor is hired by either agents or brokers and they must have a license before they can appoint any one

Question 43

What is required of a broker-agent before appointing an insurance solicitor? 1. Must hold a notice of appointment 2. Must hold a permanent license 3. Must hold a certificate of insurance 4. Must be a domestic insurer

Answer 43

Must hold a permanent license 2) is the correct answer since an insurance solicitor is hired by either agents or brokers and they must have a license before they can appoint any one.

Question 44

Company that negotiates and binds ceding reinsurance on behalf of an insurer is considered: 1. An insurance specialist 2. A third-party administrator 3. A managing general agent 4. An insurance solicitor

Answer 44

A managing general agent 3) An MGA acts as agent and produces and underwrites gross direct written premium equal to or more than 5% of the policy holder surplus as reported in the insurer's last annual statement and either adjusts or pays claims in excess of an amount determined by the Commissioner, OR negotiates and binds ceding reinsurance on behalf of the insurer.

Question 45

A representation in an insurance contract qualifies as which of the following? @ 1. An implied warranty 2. An amendment 3. An express warranty 4. A policy provision

Answer 45

An implied warranty (1) Once the contract is agreed, material statements made by the applicant in the application can be assumed to be warranties (I.e. Guaranteed to be true). Therefore, representations made prior to agreement are considered to be implied warranties.

Question 46

According to the CA Insurance Code, a binder is deemed a valid insurance policy for the purpose of providing that the insured had the insurance coverage specified in the binder for each of the following types of insurance, EXCEPT: @ 1. Marine insurance 2. Fire insurance 3. Auto insurance 4. Life insurance

Answer 46

Life insurance 4) Life insurers generally use conditional receipts- not binders.

Question 47

Company that negotiates and binds ceding reinsurance on behalf of an insurer is considered: 1. An insurance 2. A third-party administrator 3. A managing general agent 4. An insurance solicitor

Answer 47

A managing general agent Pg40

Question 48

Insurers may purchase reinsurance for a variety of reasons. Which of the following is not a good example of the use of reinsurance? Insurer purchase reinsurance: 1. For the protection from catastrophic exposure, such as hurricanes or earthquakes 2. To more safely insure an exceptionally large account 3. To avoid capacity problems by reducing the amount of unearned premium 4. Only on the below average business submitted to them, keeping the good business for themselves

Answer 48

Only on the below average business submitted to them, keeping the good business for themselves Pg 40

Question 49

Any person who makes a loan of money using real property as security: 1. There are no current laws regarding lenders disclosing borrower's information in California 2. Shall not make available the information contained in a borrowers fire or casualty policy if the borrower has filed a statement with the lender that they do not want the lender to disclose this information 3. Shall be allowed to make available the information contained in a fire and casually insurance policy for the purpose of soliciting either fire or casualty insurance only 4. Can give out any borrowers information to a solicitor if the lender discloses its practices to the borrower at the time the loan is made

Answer 49

Shall not make available the information contained in a borrowers fire or casualty policy if the borrower has filed a statement with the lender that they do not want the lender to disclose this information Pg 41

Question 50

What must a license do in order to surrender for cancellation a license in their possession? 1. Notify in writing, any insurer with which the agent has transacted business, at least 60 days prior to the effective date of termination 2. Deliver the document itself to the commissioner 3. Give the commissioner at least 60 days written notice prior to the effective date of termination 4. Destroy the original, and advise the State of California

Answer 50

Deliver the document itself to the commissioner This is the only thing a licensee must do to cancel a license

Question 51

If an insurer pays an insured $25000 in lost wages, $45000 for physicians visits and hospital costs, and $15000 for physical therapy treatments, and later finds out that the claim was fraudulent, the insured may be fine as much as: @ 1. $170,000 2. $60000 3. $85000 4. $150999

Answer 51

$170,000 Punishable by up to $150,000, or double the value of the fraud, whichever is higher

Question 52

Which of the following insurance professionals would be employed to aid an insurance broker? 1. Insurance adjuster 2. Managing general agent 3. Underwriter 4. Insurance solicitor

Answer 52

Insurance solicitor A solicitor is an insurance salesperson who contacts potential customers and handles clerical responsibilities, but has no authority to execute insurance contracts

Question 53

All of the following are characteristics of "an ideally insurable loss exposure," Except: @ 1. Losses that are catastrophic 2. Losses that are definite and measurable 3. Losses that are identical 4. Large number of similar exposure units

Answer 53

Losses that are catastrophic Pg 41

Question 54

The types of transactions and insurers that a surplus lines broker is involved with is/are: @ 1. Admitted insurers, liability insurances only 2. Admitted insurers, property insurance only 3. Non-admitted insurers, life and disability insurers 4. Non-admitted insurers, property and casualty insurances

Answer 54

Non-admitted insurers, property and casualty insurances Fact pg 41

Question 55

All licenses must be appointed by the insurance companies they represent in order to sell the lines of insurance that a particular insurer may offer. Assuming that a licensed fire and casualty broker/agent has received the proper appointments, what type or types of insurance, from the following list, may this individual sell? @ 1. Property and disability 2. Auto and disability 3. Auto insurance only 4. Auto, property insurance

Answer 55

Auto, property insurance Fact pg42

Question 56

The insurance code definition of an "insurance broker" is: 1. Any agent that writes more difficult-to-place business the specialty insurers who have appointed him/her 2. Someone employed by a fire and casualty broker-agent, receiving compassion from the employer, transacting insurance with the insurers the employer represents and acting on behalf of clients 3. Someone paid to transact insurance on behalf of another person, but not on behalf of the insurer 4. Someone appointed to transact insurance with admitted insurers, and receiving commission from them, but acts on behalf of client

Answer 56

Someone paid to transact insurance on behalf of another person, but not on behalf of the insurer Must know this definition for test

Question 57

In the state of California, how is the domestic insurer define according to the California of DOI code? @ 1. Any insurance company that has a regional, district, or agency office in California 2. Organized, chartered, incorporated under the laws of the state of California 3. Marketing and selling insurance under the laws of state California 4. Specializing in insurance products unique to the needs California (earthquake)

Answer 57

Organized, chartered, incorporated under the laws of the state of California This is the definition of an admitted insurer in the state of California

Question 58

Which of the following is the only reason that an insurer can cancel an automobile insurance policy? 1. The insurer did not notify the insurance of an at-fault loss with a dollar amount of over $500 2. The insured has reached the age 85 3. The driver'a license of the individual who usually operates the vehicle and who is insured by the policy, has had his/her license suspended temporally 4. None of these are valid reasons for an insurer to cancel. The insured can only cancel within 30 days of the policy

Answer 58

The driver'a license of the individual who usually operates the vehicle and who is insured by the policy, has had his/her license suspended temporally Pg 42

Question 59

How is the admitted insurer defined according to the California DOI? 1. It is incorporated under the laws of any other jurisdiction other than the state of California 2, it is organized and chartered according to and under the laws of the state of California 3. It transact in all states 4. It transacts insurance according to the laws of the state of California

Answer 59

It transacts insurance according to the laws of the state of California Pg 42

Question 60

Under which of the following circumstances can the insurance Commissioner deny the application for an agent's license without a hearing? 1. The applicant has previously been engaged in a fraudulent activity involving insurance sales 2. The applicant has had a license application denied for cause within the past five years 3. The applicant has failed to pass the licensing exam three times in the past toe years 4. The applicant has no previous experience in the insurance business

Answer 60

The applicant has had a license application denied for cause within the past five years Pg 43

Question 61

If an insured signs a claim form for a claim which is fraudulent, the insured may be guilty of: @ 1. Misrepresentation 2. Perjury 3. Nothing, if the claim is never paid 4. Obstruction of justice

Answer 61

Perjury Perjury means lying under oath

Question 62

It is a vital that an insurance agent/broker fully assess, analyze, and review a particular risk in order to determine the proper insurance coverage needed. The least likely way to do this is to: 1. Examine published risk data associated with the type of business in question 2. Tour the business facility to watch operational procedures and processes, as well as talk to key people within organization about the company and how it operates 3. Review all coverages in their current insurance contracts as well as the premium paid 4. Complete a questionnaire for the risk classification & then meet with key people in organization

Answer 62

Review all coverages in their current insurance contracts as well as the premium paid Pg 43

Question 63

Which of the following best defines a binder? 1. A contract that is temporary, only oral, between the insured and insurer. 2. A contract of is insurance that is temporary, either oral or in writing, between insured and solicitor agent 3. A contract of insurance that is temporary, only temporary, only in writing, better the insured and insurer 4. A contract of insurance that is temporary, either oral or in writing, between the insured and insurer

Answer 63

A contract of insurance that is temporary, only temporary, only in writing, better the insured and insurer A binder must be in writing and is considered a temporary contract of insurance

Question 64

A fire and casualty managing general agent can do all of the following, except: 1. Appoint, supervise, and terminate the contracts of agents 2 be licensed as a fire and casualty agent 3. Accept or decline risks, and accept premiums from producing broker agents 4. None of these are excluded from the powers and authority given to fire and casualty managing

Answer 64

None of these are excluded from the powers and authority given to fire and casualty managing Pg44

Question 65

What type of insurance company has owners who are stockholders in the company and who share in the profits of the company? @ 1. Reciprocal insurance companies 2. Mutual insurance companies 3. Assessment insurance companies 4. Stock insurance companies

Answer 65

Stock insurance companies Pg 44

Question 66

When does the license of a fire and casualty broker/agent become inactive? 1. When the broker/agent has no appointment with any insurance company, but licensing renewal fees have been paid and CE requirements have been met 2. When the broker/agent no longer transacts or sells insurance 3. When the broker/agent doesn't renew their license upon its expiration 4. These are all situations where a license become inactive

Answer 66

When the broker/agent has no appointment with any insurance company, but licensing renewal fees have been paid and CE requirements have been met Inactive means that the agent has no appointment on the file for his/her insurance license