What can lead to suspension of an insurance license in Idaho?

Study for the Idaho Independent Adjuster Exam. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your examination!

The suspension of an insurance license in Idaho can indeed occur due to the revocation of the certificate of authority. When an insurance company’s certificate of authority is revoked, it signifies that the company is no longer authorized to operate in the state. As a result, any licensed agents or adjusters working with that company may face suspension of their licenses as they are tied to the company’s authorization to conduct business. The regulatory framework in Idaho ensures that agents and adjusters operate within a licensed environment, and the revocation of a company’s authority directly impacts the licenses of those associated with it.

The other options do not relate directly to the grounds for suspension. For example, while requesting additional paperwork might seem like a hassle, it is a standard part of the compliance process and does not warrant suspension. Similarly, poor sales performance, while potentially a concern for an employer, does not influence the status of a license directly. Lastly, mere suspicion of a violation is not sufficient grounds for suspension without evidence or appropriate legal proceedings. Thus, the connection between a company’s revoked authority and the suspension of associated licenses is the reason that option aligns with the criteria for suspension in Idaho.

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