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Once I progress from one License level to another, can I be demoted to a lower License level?

Yes, it is possible to be demoted to your previous license level.  Like Fast Track promotions, demotions can occur during the season or at the end of a season. 

During the Season:

If any driver's Safety Rating falls below 1.00 he/she will be demoted at least one license level.  No drivers are ever demoted back to a Rookie license.  The most they can be demoted is to Class D.

After the Completion of a Season:

If a driver's safety Rating falls below 2.00 he/she will be demoted at least one license level.  No drivers will ever be demoted back to a Rookie License at any time.
 

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