An applicant receives a temporary insurance producer license, but after 80 days the business is sold. What happens to the license?

A temporary insurance producer license is typically issued for a specific period, often to allow an individual to work in the insurance industry while meeting the necessary requirements for obtaining a permanent license. In this scenario, if the business is sold while the individual holds a temporary license, the license will automatically terminate because temporary licenses are contingent upon the original conditions under which they were granted, including the operational status of the business.

When a business changes ownership, the conditions associated with the original temporary license no longer apply. Therefore, the license cannot be reassigned or transferred to the new owner without undergoing a new licensing process. This termination ensures that the integrity of the licensing process is maintained, ensuring that only those who meet current operational standards and regulatory requirements are permitted to function as licensed producers.

Considering that other options suggest possibilities like converting the license to a permanent one or applying it elsewhere, they overlook the established procedure that necessitates the license’s termination upon significant changes in business ownership.