Idaho Life Producer Practice Exam

Which action by a producer would NOT typically result in a license suspension or revocation?

1. Producing an insufficient amount of new premium

2. Failing to take a required exam

3. Submitting false information

4. Operating without a valid license

The correct answer is: Producing an insufficient amount of new premium

Producing an insufficient amount of new premium does not typically lead to a suspension or revocation of a producer's license. In the insurance industry, while producers are expected to meet certain production targets, these targets are largely influenced by market conditions and agency support rather than solely the individual producer's efforts. Regulatory authorities primarily focus on more serious compliance issues and unethical practices. These practices include submitting false information, failing to complete required exams, or operating without a valid license, all of which compromise the integrity of the insurance profession and can lead to disciplinary action. Thus, insufficient premium production, when based on legitimate business conditions, does not warrant such severe consequences as a license suspension or revocation.