State Farm Auto Insurance Practice Test

What does a license status of "Cancelled" mean?

1. The license is still valid but requires renewal

2. The individual's permit has been terminated

3. The driver has no driving privileges temporarily

4. The license has expired

The correct answer is: The individual's permit has been terminated

A license status of "Cancelled" indicates that the individual's permit has been terminated, which means that the driver is no longer authorized to operate a vehicle. This status is more severe than simply expiring or being temporarily suspended; it signifies a complete revocation of driving privileges due to various possible reasons, such as failure to meet legal requirements, administrative errors, or violations. In contrast, an expired license refers to a situation where the driver’s license has reached the end of its validity period but can often be renewed if the appropriate steps are taken. A license that is still valid but requires renewal indicates it has not yet lapsed and the driver is still permitted to drive despite needing to complete the renewal process. A temporary lack of driving privileges typically points to a suspension, which is different from a cancellation that denotes a more permanent status change. Therefore, the interpretation of "Cancelled" as termination of the permit is clear and distinctly represents the loss of driving privileges.