What consequence occurs if a firm fails to maintain the required liability insurance?

The correct answer focuses on the revocation of the registration certificate as a significant consequence of failing to maintain the required liability insurance. This outcome highlights the importance of liability insurance as a fundamental requirement for businesses to operate responsibly and legally.

When companies are required to have liability insurance, it serves as a financial safeguard for unexpected events or claims that may arise due to accidents, injuries, or damages. If a firm neglects this responsibility, regulatory bodies may take substantial action to protect public interest and ensure that businesses are adequately insured, thereby maintaining a standard of safety and accountability within the industry.

The revocation of the registration certificate acts as a strong incentive for companies to comply with insurance requirements, as it directly affects their legal ability to operate. Without this certificate, a business cannot legally function, which aligns with regulatory practices aimed at ensuring that businesses meet all necessary legal and safety obligations.