Which action by a producer would NOT result in a license suspension or revocation?

The action that would not typically result in a license suspension or revocation is when a seller sells a replacement policy causing an insured to lapse an existing policy. While such practices might raise concerns about the ethics of the transaction and the potential for harm to the insured due to a lapse in coverage, they do not automatically lead to disciplinary measures against the producer's license.

In contrast, engaging in fraudulent practices is a serious offense that directly undermines the integrity of the insurance system and is likely to lead to license revocation. Failing to renew a license on time is also a clear violation of regulatory requirements, leading to automatic suspension or the inability to engage in legal insurance activities until resolved. Furthermore, providing false information on applications, even if done negligently, can be viewed as misrepresentation, which violates key legal and ethical guidelines in the industry and can similarly result in severe penalties, including revocation of the license.

Thus, the situation involving the replacement policy could prompt a review or disciplinary action, but it does not carry the same immediate legal ramifications as the other actions listed.