Life License Qualification Program (LLQP) Practice Exam

Which activity will NOT result in the suspension of an agent's license?

1. Making malicious and false statements about an insurer

2. Replacing an insurance policy based on misrepresentation

3. Working for a foreign insurer

4. Misrepresenting any fact about an insurance policy

The correct answer is: Working for a foreign insurer

The activity that will not lead to the suspension of an agent's license is working for a foreign insurer. Most jurisdictions require agents to be licensed with the regulatory body governing insurance in their region, but working for a foreign insurer typically doesn't directly correlate with misconduct or a violation of ethical standards. Rather, agents need to comply with the regulations that may allow or prohibit them from representing foreign companies, and this is often managed through proper licensure and authorization processes. In contrast, making malicious and false statements about an insurer, replacing an insurance policy based on misrepresentation, and misrepresenting any fact about an insurance policy are all serious breaches of ethical and legal standards that can harm consumers and undermine trust in the insurance industry. Such actions directly reflect poorly on an agent's integrity and professionalism, making them more likely to result in disciplinary actions, including suspension of the license.