PLCaliforniamedium
Under Cal. Ins. Code §§ 1668 and 1668.5, the Commissioner may suspend or revoke a Personal Lines Broker-Agent license for which of the following acts?
ARecommending a higher policy limit than the prospect originally requested, when the higher limit is reasonably supported by the exposure
BFailing to offer an optional endorsement that the client did not request and that was not legally required
CCharging the full filed premium without applying a discount for which the insured did not qualify
Misrepresenting policy terms in a sales presentation to induce a purchase
Why this is the answer
Section 1668 lists discretionary grounds for denial, suspension, or revocation: incompetence, untrustworthiness, fraudulent or dishonest practices, and any cause that would have authorized the Commissioner to refuse to issue a license originally. Section 1668.5 adds factors such as a substantially related criminal conviction. Misrepresenting policy terms is squarely 'fraudulent or dishonest' and also a § 790.03 Unfair Insurance Practices Act violation. The other answer choices describe routine, lawful agent conduct.
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