Which situation is NOT a valid reason for a Viatical Settlement Broker's license cancellation?

The situation regarding receiving praise from clients is not a valid reason for canceling a Viatical Settlement Broker's license because it reflects positive feedback on the broker’s performance and client relations. Praise from clients typically indicates that the broker has provided satisfactory services and has fulfilled their obligations in a beneficial way.

In contrast, engaging in unauthorized transactions, failing to provide necessary client disclosures, and working in a different state without the appropriate approval are serious compliance issues that undermine the integrity and legal standing of a broker's practice. These actions can jeopardize client interests, violate regulations, and demonstrate a lack of professionalism or adherence to established industry standards, which are valid causes for license cancellation. Thus, the positive nature of client praise stands in stark contrast to the other circumstances, which represent significant violations of legal and ethical responsibilities.