Michigan Surplus Lines Practice Test 2025 - Free Surplus Lines Practice Questions and Study Guide

A commissioner has the authority to reject a license application if the applicant has been convicted of certain felonies. This is based on the principle that a felony conviction can indicate a lack of trustworthiness or reliability, which are critical traits for those working in fields that require licensure, such as insurance. The underlying rationale is that individuals who have engaged in serious criminal behavior may pose a risk to the integrity of the industry and the protection of the public.

In contrast, while lack of a financial advisor certification or insufficient references may potentially hinder an applicant's ability to demonstrate competence, they do not typically constitute grounds for rejection. Similarly, an applicant's spouse having a criminal record is generally irrelevant to the applicant's qualifications and character for professional licensing. The focus remains on the individual applicant's conduct and history, particularly in the context of felony convictions.