State RegulationsFL specificDifficulty 3/5
Under current Florida law, what is the maximum administrative penalty for a willful unfair trade practice violation, and the aggregate ceiling for violations by an insurer in the same action?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Fla. Stat. 626.9521, current law caps a willful unfair trade practice at $100,000 per violation, with an aggregate ceiling of $500,000 for violations by an insurer in the same action. Chapter 2023-172 raised these from $5,000/$40,000 to $12,500/$100,000 per violation (nonwillful/willful), so the pre-2023 textbook values are no longer correct. The Department of Financial Services enforces these caps through administrative actions against licensees.
Why the other options are wrong
- B) $40,000 per violation and $200,000 aggregate are the pre-2023 textbook values, superseded by chapter 2023-172.
- C) $12,500 and $50,000 are the current NONWILLFUL per-violation and aggregate figures, not the willful ones.
- D) $187,500 is the fine ceiling for twisting or churning committed willfully and with fraud, and aggregate caps do apply.
Memory hook
Willful UTP: $100,000 each, $500,000 all together.