Which action may cause a producer's license to be suspended?

The suspension of a producer's license often occurs due to acts that demonstrate a lack of integrity or ethical behavior in the handling of insurance transactions. Misappropriation of premiums is a serious violation, as it involves the unauthorized use or theft of funds that are meant for insurance policies. This undermines the trust between consumers and insurance providers, and such actions can lead to significant penalties, including the suspension of the producer's license.

While the other actions listed may have consequences, they typically do not carry the same weight of ethical breach as misappropriating premiums. For instance, failing to provide training sessions or not filing annual reports could lead to regulatory issues, but they do not directly involve financial misconduct. Similarly, choosing not to sell a certain policy is a matter of business discretion and does not inherently reflect on the producer's integrity or capability. Thus, misappropriation of premiums is viewed as the most serious offense, warranting immediate scrutiny and potential suspension of the license.