What is the consequence for a person who transacts insurance without a license?

When an individual transacts insurance without a proper license, the consequences can include being guilty of a misdemeanor. This is a serious matter because engaging in the insurance business without a license is considered illegal. The rationale for this law is to protect consumers and maintain integrity within the insurance industry by ensuring that only qualified individuals are allowed to sell insurance products.

Licensing requirements are in place to ensure that agents have the necessary knowledge and training to advise clients appropriately. By classifying unlicensed activity as a misdemeanor, the state sends a strong message about the seriousness of the offense and creates a deterrent effect against unlicensed practices.

While civil damages and financial penalties may also be ramifications of unlicensed insurance activity, the specific classification of engaging in this work as a misdemeanor highlights the legal implications and potential criminal charges that can result from such actions. Therefore, the classification of the transgression as a misdemeanor serves both to punish the offender and to safeguard the public.