What can be a consequence for brokers who fail to comply with the RIBO Act?

The consequence of license suspension or revocation is appropriate because the RIBO Act establishes the regulatory framework for the insurance brokerage industry. Compliance with the Act is essential to ensure that brokers adhere to professional standards and regulations designed to protect consumers and maintain the integrity of the insurance market.

When brokers fail to comply with the provisions outlined in the RIBO Act, they are subject to serious repercussions, including having their licenses suspended or revoked. This is a significant penalty because it directly impacts their ability to operate in the industry. The regulatory body has the authority to enforce such penalties to ensure that all brokers conduct their business ethically and legally.

The other choices, such as warnings, increased fees, or mandatory training sessions, while they may serve as consequences in some circumstances or under different regulatory frameworks, do not carry the same level of severity or impact as license suspension or revocation. These options imply lesser forms of discipline compared to the direct and immediate effect on a broker’s ability to practice if their license is compromised.