Illinois Casualty Insurance State Practice Exam

What happens when a license is revoked due to prohibited activities?

1. Permanent suspension of the ability to apply

2. Temporary permit issued

3. Legal penalties only

4. Automatic reinstatement

The correct answer is: Permanent suspension of the ability to apply

When a license is revoked due to prohibited activities, it results in a permanent suspension of the ability to apply for a new license. This means that the individual cannot reapply for licensure in the future unless specific legal or regulatory requirements are met for reinstatement, which is not guaranteed. The revocation serves as a significant consequence intended to protect the public by ensuring that individuals who engage in prohibited behaviors cannot continue to operate in a capacity that requires licensure. The other options do not accurately reflect the consequences of license revocation. A temporary permit would not be issued in the case of a revocation, as that would contradict the nature of revocation itself. Legal penalties may indeed accompany the revocation, but that is not the primary outcome in terms of licensure status. Finally, automatic reinstatement does not occur after a license is revoked; reinstatement would require a specific process and is not guaranteed. Thus, understanding the implications of a revoked license is crucial for ensuring compliance with licensing regulations.