What may an insurance agent be held liable for if they engage in deceptive practices?

An insurance agent may be held liable for engaging in deceptive practices because such actions can lead to both criminal charges and civil lawsuits.

When an agent participates in deceptive practices, such as misrepresenting policy terms or failing to provide accurate information, they may violate various state and federal laws governing insurance practices, which can result in criminal charges. These laws are designed to protect consumers from fraud and misleading behavior, and violations can lead to fines or even imprisonment.

Additionally, deceptive practices can result in civil lawsuits. Affected clients or third parties may seek compensation for damages caused by the agent's misleading actions. This can include seeking restitution for financial losses resulting from decisions made based on incorrect information provided by the agent.

Therefore, because deceptive practices can expose an agent to both potential criminal and civil repercussions, the correct answer encompasses both outcomes.