What is the maximum fine the Commissioner may impose for violations instead of revoking a license?

What is the maximum fine the Commissioner may impose for violations instead of revoking a license?

• A. $1,000 per violation
• B. $2,000 per violation
• C. $5,000 per violation
• D. $10,000 per violation

Answer: (B)

The maximum fine that the Commissioner can impose for violations, as an alternative to revoking a license, is indeed $2,000 per violation. This provision allows the Commissioner to maintain regulatory oversight and promote compliance within the insurance industry while offering a financial penalty as a corrective measure rather than resorting to revocation of a license. This option reflects the balance between enforcement and the ability for individuals and entities to remain in operation while addressing infractions. When the penalty is set at this level, it encourages licensees to adhere to compliance standards, as financial consequences can be significant, yet still allows them the opportunity to rectify their practices without losing their ability to operate. This structure serves the dual purpose of punishing non-compliance while still providing a pathway for improvement in the licensee's conduct.

The maximum fine that the Commissioner can impose for violations, as an alternative to revoking a license, is indeed $2,000 per violation. This provision allows the Commissioner to maintain regulatory oversight and promote compliance within the insurance industry while offering a financial penalty as a corrective measure rather than resorting to revocation of a license.

This option reflects the balance between enforcement and the ability for individuals and entities to remain in operation while addressing infractions. When the penalty is set at this level, it encourages licensees to adhere to compliance standards, as financial consequences can be significant, yet still allows them the opportunity to rectify their practices without losing their ability to operate. This structure serves the dual purpose of punishing non-compliance while still providing a pathway for improvement in the licensee's conduct.