1. Can we get different license rules for each Hold? Licenses places a centricity on literal license documents. Licenses verifies your permissions by checking for license books. If you needed a different Armor License for each hold, that would result in duplicates across the entire license system. On the other hand, if only the rules differed while a single Armor License satisfied the requirement across all of Skyrim, there would be a dissonance between narrative and mechanics. I also want to reduce the number of script checks that run every time you change location so to keep this mod as lightweight as possible. If you're still interested in this niche, you might want to check out a mod called "Sexy Adventures."
2. Why did the guards arrest me if I've got nothing equipped? You likely provided a valid source for the Nullify Magicka curse. Un-cursed individuals are subject to fines and inventory checks.
3. Why do I keep racking up a bounty? You likely enabled the Add Fine to Bounty option.
4. How am I supposed to keep my items if I've got nowhere to store them, yet? Barring the obvious of guards arresting you for general license rule violations, guards will specifically only approach you for blatant and open item violations. That is, as long as you've got nothing rule-breaking in select equipment slots, the guards will have no reason to approach you. 
5. What exactly is the reach of the Life Insurance feature? Only throughout Primary Licenses: Armor License, Bikini License, Clothing License, Magic License, and Weapon License. If the Insurance feature is enabled, you'll need to purchase a Life Insurance to enjoy the benefits of these valid licenses on-hand. Rest assured that this feature will not affect any Primary License types that are disabled.
6. How does Licenses apply features from its integrations? Modern Arousal Frameworks such as OSL Aroused and SexLab Aroused NG are used to verify certain keywords that you may choose to use. SlaveTats is used to apply, lock, and remove body tattoos. Devious Devices is used for its lockable accessories. If these mods aren't available in your setup, you'll simply be locked from relevant features.
7. Why isn't the guard removing my collar? You likely set the Nullify Magicka curse source as "collar" and do not yet have a collar exemption.
8. Why isn't the guard removing my curse? You likely do not yet have a Life Insurance.
9. Where can I retrieve my items after they are confiscated? City and Town Guards will allow you to access a pool of your confiscated items via a dialogue option at any time. If the Gift Menu appears empty, you lack the necessary license and/or insurance to retrieve your item(s).

Be sure to visit the User Manual before posting your question.