What happens to a license holder's license if they violate the requirement to maintain insurance or a bond?

Study for the Texas DPS PSB Qualified Manager Exam. Practice with flashcards and multiple choice questions. Each question includes hints and explanations. Prepare for your exam confidently!

When a license holder violates the requirement to maintain insurance or a bond, the appropriate action taken is the immediate suspension of the license. This reflects the importance of maintaining insurance or a bond as a fundamental criterion for responsible operation within the private security industry. Insurance or bonding is essential not only for protecting the interests of clients but also for ensuring that the license holder operates within the legal and ethical frameworks established by regulations.

Suspending the license immediately serves as a safeguard against potential risks associated with unlicensed or inadequately insured operations, protecting clients and the public from liability or damages that may arise from inadequately trained or insured personnel. This immediate action emphasizes the authority and responsibility of the Texas DPS Private Security Bureau to enforce compliance and ensure that all license holders meet their obligations to maintain insurance or bonding as required.

In contrast, options such as revocation or review do not address the immediacy of the situation. Revocation implies a more permanent and severe action that is usually reserved for more serious or repeated violations, while putting the license under review might delay necessary corrective actions. A fine, while applicable in some cases of non-compliance, does not provide a direct resolution to the immediate risks posed by operating without the required insurance or bonding.

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