What does a lapsed license refer to?

A lapsed license refers specifically to a license that has not been renewed by the licensee after its expiration. In this context, option B accurately defines a lapsed license as one that expired more than 5 years ago. This situation signifies that the license is no longer valid, and the salesperson has not taken the necessary steps to restore their licensing status within the allowable timeframe.

In many licensing systems, including those for auto salespersons, it is crucial to maintain active licensing to comply with regulations and ensure legal operation within the profession. If a license lapsed for an extended period, it may lead to additional requirements or difficulties in reinstatement, as oppossed to a license that could be renewed simply or is awaiting renewal, which implies that the individual still holds legal standing to operate while the paperwork is processed.

Each of the other options describes different scenarios that do not accurately capture the situation of a lapsed license, reinforcing why option B is the correct choice.