What must an insurance producer pay if they renew their license after it has lapsed?

When an insurance producer must renew a license that has lapsed, they are typically required to pay a double penalty fee. This is a common statute designed to encourage compliance with licensing requirements and ensure that all producers remain current with their credentials. The rationale behind this policy is to promote accountability among insurance producers; a lapsed license can have serious implications for their ability to operate legally and ethically in the insurance market.

By imposing a double penalty fee, it acts as a deterrent for producers to allow their licenses to remain expired for prolonged periods. In many cases, those who renew their license before its expiration only pay a standard renewal fee, but once the license lapses, the additional penalty is necessary to reinstate the producer's right to operate legally in the state.

Understanding these penalties is crucial for producers to avoid unexpected costs and maintain compliance with state regulations governing their profession.