California Life-Only & Accident and Health AgentCalifornia Law - GeneralHard
An insurance agent, Sarah, has been found to have violated a provision of the California Insurance Code for which no specific penalty is prescribed. What is the maximum fine the Commissioner can levy against Sarah for this violation?
- A$10,000
- B$5,000
- C$1,000
- D$25,000
Show answer & explanationAnswer & explanation
Correct answer: A. $10,000
California Insurance Code Section 790.035 addresses penalties for unfair methods of competition and unfair or deceptive acts or practices. For violations where no specific penalty is provided elsewhere, the Commissioner can impose a fine of up to $10,000 for each act.
Why the other options are wrong
- B. This amount is incorrect for the maximum fine for an unspecified violation.
- C. This is a common penalty for minor infractions, but not the maximum for unspecified violations.
- D. This amount is generally associated with more severe or repeated violations, not the default maximum for an unspecified first-time violation.
Unspecified CIC Violation Penalty
When a California Insurance Code violation has no specifically prescribed penalty, the Commissioner can levy a default maximum fine per act.
- Applies when no other specific penalty is defined.
- Maximum fine is $10,000 per act.
- Part of the Commissioner's general enforcement powers.
Memory trick: No specific rule, ten grand the max, for every single violation act.