California Life-Only & Accident and Health AgentCalifornia Law - GeneralMedium
An insurance agent, licensed in California, has been found to have violated a provision of the California Insurance Code for which no specific penalty is prescribed. What is the maximum civil penalty that may be imposed by the Commissioner for such a violation?
- A$5,000
- B$500
- C$1,000
- D$2,500
Show answer & explanationAnswer & explanation
Correct answer: C. $1,000
California Insurance Code Section 780 specifies that any person who violates any provision of the code for which no penalty is specifically provided is guilty of a misdemeanor punishable by a fine not exceeding $1,000, or by imprisonment not exceeding six months, or by both.
Why the other options are wrong
- A. This is incorrect; this amount might apply to other specific violations but not to a general unspecified one.
- B. This is incorrect; the maximum penalty for an unspecified violation is higher.
- D. This is incorrect; this amount might apply to other specific violations but not to a general unspecified one.
Unspecified CIC Violation Penalty
The maximum civil penalty for violating a California Insurance Code provision when no specific penalty is otherwise prescribed.
- Applies when no other penalty is stated in the code.
- Maximum fine is $1,000.
- Can also include imprisonment or both.
Memory trick: When the code is silent, the Commissioner's fine is a grand.