True or False: A person whose license has been suspended or revoked may not be a partner, officer, or owner of a licensed business entity, nor may they be employed in any capacity by an insurance producer.

True or False: A person whose license has been suspended or revoked may not be a partner, officer, or owner of a licensed business entity, nor may they be employed in any capacity by an insurance producer.

• A. True
• B. False
• C. Only if authorized
• D. Depends on license type

Answer: (A)

When a license is suspended or revoked, the person loses the right to participate in the control or operation of any licensed insurance business and cannot work for an insurance producer in any role. This strict prohibition protects consumers by ensuring someone who has been sanctioned cannot influence or benefit from a licensed entity while the disciplinary action is in effect. The rule covers all forms of involvement, including being a partner, officer, or owner, and any type of employment with an insurance producer. Only after reinstatement or a lifted order could they potentially return to such roles.

When a license is suspended or revoked, the person loses the right to participate in the control or operation of any licensed insurance business and cannot work for an insurance producer in any role. This strict prohibition protects consumers by ensuring someone who has been sanctioned cannot influence or benefit from a licensed entity while the disciplinary action is in effect. The rule covers all forms of involvement, including being a partner, officer, or owner, and any type of employment with an insurance producer. Only after reinstatement or a lifted order could they potentially return to such roles.