Georgia Property & Casualty Practice Exam

For which reason can the Commissioner NOT suspend or revoke an agent's license?

1. Misrepresentation in obtaining the license

2. Conviction of a felony

3. Failing to meet projected sales goals

4. Having an agent's license revoked in another state

The correct answer is: Failing to meet projected sales goals

The reason that an agent's license cannot be suspended or revoked for failing to meet projected sales goals is tied to the nature of licensing regulations. Licensing boards, including the Commissioner in the context of insurance agents, typically focus on the conduct and legal compliance of agents rather than their sales performance. Under performance metrics such as sales goals are often based on factors outside of an agent's control, such as market conditions or individual client decisions, and are thus not valid grounds for disciplinary action. Other reasons listed, such as misrepresentation in obtaining a license, a felony conviction, and having a license revoked in another state, relate directly to issues of integrity, legal compliance, and professional conduct. These factors are critical for maintaining the standards of the insurance profession and protecting consumers. If an agent is found to have acted unethically or illegally in obtaining their license or has been deemed unfit due to severe legal transgressions, those actions justify suspension or revocation of the license.