What event leads to an agent's license becoming inactive?

An agent's license becomes inactive primarily when they do not have the authority to represent any insurer. This means the agent is no longer affiliated with an insurance company, which is essential for maintaining an active license. Agents must maintain a relationship with an insurer to sell policies on their behalf; if that relationship ceases for any reason, the agent's license is rendered inactive.

In contrast, options involving personal life events or educational requirements, while they may present challenges, do not directly cause a license to become inactive. For example, personal circumstances such as the death of a family member do not impact the licensure status. Similarly, while failure to complete continuing education can have consequences, such as fines or potential disciplinary action, it does not typically result in immediate inactivation of the license; rather, it would require the agent to catch up on those educational requirements to reinstate an active status. Insufficient sales performance, while possibly affecting employment status or commissions, does not equate to losing the license itself unless it directly involves lack of representation from an insurer.

Therefore, the condition of not having authority to represent any insurer is a clear and direct reason for an agent's license status to become inactive.