If a license lapses for more than 90 days but less than 1 year, what happens to the license?

If a license lapses for more than 90 days but less than 1 year, what happens to the license?

• A. It is automatically renewed
• B. A new license must be issued
• C. It can be renewed with a penalty fee only
• D. It reverts to inactive status

Answer: (B)

When a license lapses for more than 90 days but less than 1 year, the process requires the individual to obtain a new license rather than simply renewing the existing one. This reflects regulatory measures that ensure individuals maintain current qualifications and compliance with training and licensing standards. If a license has been inactive for this duration, the governing body overseeing insurance licenses sees it as necessary for the individual to reapply and meet any updated requirements, rather than offering an automatic renewal option. The situation underscores the importance of keeping licensing up to date, as prolonged inactivity can lead to additional scrutiny and necessitates reestablishing credentials. The remaining options suggest that a license can be renewed automatically, incur only a penalty fee for renewal, or revert to an inactive status, which does not accurately capture the requirements when a license is inactive for the specified timeframe. The rules are designed to enforce accountability in the insurance sector and ensure all practitioners are current in their knowledge and legal standing.

When a license lapses for more than 90 days but less than 1 year, the process requires the individual to obtain a new license rather than simply renewing the existing one. This reflects regulatory measures that ensure individuals maintain current qualifications and compliance with training and licensing standards.

If a license has been inactive for this duration, the governing body overseeing insurance licenses sees it as necessary for the individual to reapply and meet any updated requirements, rather than offering an automatic renewal option. The situation underscores the importance of keeping licensing up to date, as prolonged inactivity can lead to additional scrutiny and necessitates reestablishing credentials.

The remaining options suggest that a license can be renewed automatically, incur only a penalty fee for renewal, or revert to an inactive status, which does not accurately capture the requirements when a license is inactive for the specified timeframe. The rules are designed to enforce accountability in the insurance sector and ensure all practitioners are current in their knowledge and legal standing.