Reasons to Revoke an Insurance License

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Insurance agents can only sell and service policies as long as their licenses are in good standing. There are several reasons a state could revoke an agent’s insurance license.

Continuing Education

Most states require agents to complete yearly or biannual continuing education training. If an agent does not complete the training, his license can be revoked or suspended.


A state’s insurance department will revoke an agent’s license if she willfully defrauds a policy holder, agent or insurance company.



Twisting involves coercing a policyholder into letting a policy lapse in order to get him to buy a different policy. Although this is a common practice, it is punishable by insurance license revocation.



In most states, offering gifts, rebates or other incentives to entice a customer to buy a policy is an offense that leads to license revocation.


Felony Conviction

An insurance department may revoke an agent’s license if he is convicted of a felony.



About the Author

Owen Pearson is a freelance writer who began writing professionally in 2001, focusing on nutritional and health topics. After selling abstract art online for five years, Pearson published a nonfiction book detailing the process of building a successful online art business. Pearson obtained a bachelor's degree in art from the University of Rio Grande in 1997.

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