What is the consequence of having a certificate of authority revoked?

The consequence of having a certificate of authority revoked includes serious penalties such as denial or revocation of the individual’s or entity’s license. This means that once a certificate of authority is revoked, the affected party will typically not be allowed to engage in activities that require a valid license, such as adjusting claims. The revocation signifies that the regulatory authority has found significant issues with compliance, which often leads to stringent repercussions aimed at maintaining the integrity of the profession and protecting consumers.

In contrast, options suggesting issuance of a new license or automatic approval of renewal applications do not align with the implications of a revoked certificate, as these scenarios imply continued ability to operate, which is counter to the consequences of a revocation. Similarly, stating that there are no significant consequences underestimates the severity of losing a certificate of authority, as it directly impacts one's legal ability to work in the field.