What would be a consequence for an agent who transacts insurance without the proper licensing?

Transacting insurance without the proper licensing is a serious violation of insurance regulations. Agents are required to hold valid licenses to ensure that they have the necessary knowledge and training to provide appropriate insurance products and services to clients. Operating without this license can lead to significant legal penalties and fines imposed by regulatory authorities.

These legal repercussions are designed to protect consumers and maintain the integrity of the insurance marketplace by ensuring that only qualified individuals are allowed to engage in insurance transactions. Agents found acting without a license might face substantial financial penalties, and in some cases, they could also be subject to criminal charges depending on the severity of the violation. This underscores the importance of adhering to licensing requirements to avoid detrimental consequences.

The other potential consequences listed, such as extra certifications or increased training requirements, are not primary outcomes of unlicensed activity. Instead, the primary concern is the legal ramifications that arise from bypassing the necessary licensing protocols.