What additional fee applies when a producer reinstates a lapsed license?

When a producer reinstates a lapsed license in West Virginia, the applicable fee is a penalty of double the unpaid renewal fee. This provision is designed to encourage timely renewal of licenses by imposing a financial consequence for allowing a license to lapse. By requiring double the unpaid renewal fee, the law emphasizes the importance of maintaining up-to-date licensing, which helps ensure that producers remain compliant with regulatory standards. Consequently, this penalty structure serves to incentivize proactive license management among producers, reducing instances of lapsed licenses and reinforcing professional responsibility in the industry.

The rationale for other options does not align with the practice established in West Virginia insurance law. A fee equal to the original licensing fee or a one-time reinstatement fee may suggest a more lenient approach to reinstatement, which does not reflect the regulatory intent to promote timely renewals. The option indicating no additional fee is also inaccurate, as it would undermine the consequences set forth for failing to renew on time.