California Insurance Code & EthicsQuestion 38 of 53186% of test-takers answer this correctly

Which of the following is NOT a statutory ground on which the Insurance Commissioner may deny, suspend, or revoke a producer license?

a.Conviction of a felony or a misdemeanor involving moral turpitude
b.Failure to belong to a producer trade association
c.Misrepresentation in the license application
d.Showing incompetence or untrustworthiness in transacting insurance

Explanation

Section 1668 lists grounds for discipline including felony or moral-turpitude misdemeanor convictions, fraud or misrepresentation in the application, and conduct showing incompetence or untrustworthiness. Mere non-membership in a private trade association is not a basis for discipline.

Law Reference: Cal. Ins. Code §1668

This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →

Practice all 531 questions free — no signup required.

Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →

Related questions on this topic

Last reviewed: · editorial process

PrepPass team · Verified against California Property & Casualty Insurance License Exam · How we review
Report