True or False: The director may refuse to grant or renew a license based on practices likely to cause coercion.

The statement is true because the director has the authority to refuse to grant or renew a license if there are practices involved that may lead to coercion. This is consistent with the principles of maintaining ethical standards and protecting consumers within the insurance industry. Coercive practices can undermine the integrity of the marketplace, harm consumer trust, and lead to unfair competition.

By allowing the director to take action in such cases, the regulatory framework is designed to ensure that all licensed operators adhere to legal and ethical guidelines. This prevents the potential for exploitation of customers, ensuring that all transactions in the surplus lines market are fair and conducted within a healthy competitive environment. Therefore, the ability of the director to refuse a license is a critical mechanism for promoting ethical conduct in the industry.