What are the potential penalties for engaging in unlicensed activity in Texas?

• A. Penalties including fines
• B. License suspension and criminal charges
• C. No penalties
• D. Automatic license revocation

Answer: (A)

In Texas, transacting insurance without a license is a violation of the insurance laws, and enforcement centers on penalties imposed by the regulatory authority. The idea captured by “penalties including fines” is that penalties do exist and fines are a common, readily enforceable remedy. While the regulator can also take other actions—such as suspending or revoking a license or, in some cases, pursuing criminal charges—these outcomes depend on the specific facts and statutes involved. The question’s best answer highlights fines as a primary form of penalty you should expect to encounter for unlicensed activity.