Which act is considered a misdemeanor in terms of insurance transactions?

Transacting without a license is considered a misdemeanor in insurance transactions because it violates state regulations that govern the insurance industry. Each state requires individuals and businesses to be licensed to ensure they meet necessary qualifications and standards. Licensing helps protect consumers by ensuring that only qualified agents can sell insurance products and provide advice. Engaging in these activities without the appropriate license can undermine consumer trust and the integrity of the insurance market, which is why it's treated as a misdemeanor.

Options related to improper licensing, failing to collect premiums, and false representations may involve regulatory actions or civil penalties, but they do not typically carry the same immediate criminal implications as transacting without a license. Therefore, operating without proper authority in the insurance sector is specifically outlined as a misdemeanor, emphasizing the importance of adhering to regulatory requirements in the industry.