An insurance producer's resident license lapses due to a failure to complete the required Continuing Education (CE) hours and pay the renewal fee by the expiration date. If the producer attempts to reinstate the license 60 days after this expiration date, which of the following is generally the correct procedure under standard state insurance regulations?
- The producer may reinstate the license by completing the outstanding CE hours, paying the standard renewal fee, and paying a late reinstatement penalty, without needing to retake the state licensing exam.Answer
- BThe producer must immediately pass the state licensing exam again because the license has been expired for more than 30 days.
- CThe producer is only required to pay a late reinstatement penalty, as the Department of Insurance allows deficient CE credits to be deferred to the next biennial renewal period.
- DThe producer must apply for a temporary license to continue transacting insurance business while finishing the deficient CE hours.
Answer
The producer may reinstate the license by completing the outstanding CE hours, paying the standard renewal fee, and paying a late reinstatement penalty, without needing to retake the state licensing exam.
Under standard insurance regulations, a producer who allows their license to lapse has a reinstatement period (usually 12 months) during which they can restore their active status. To do so, they must complete all missing continuing education hours and pay the standard renewal fee plus a reinstatement penalty fee. Because the lapse in this scenario is only 60 days, they do not need to retake the pre-licensing course or the state examination.
Step-by-Step Solution
Key Concept
License Reinstatement Following a Lapse