This was conceived when it became apparent that Ben Waller was too unpleasant to people, and it was deemed necessary to keep a tab on his bad behaviour by giving him 'Arse-hole points' every time he committed to being mean.
It is possible to remove points from your licence if you do kind and selfless acts, however, just like obesity, it's easier to gain that it is to lose.
Also similar to this is the 'Bitch licence', which works on the same principle but is given to females that deserve it.
Ben: Your face is nasty!
David: Ben, that's another point on your Arse-hole licence. That's four points you've got in the last 20 minutes bringing you to a grand total of nine.
Ben: Awww what?!