State RegulationsGA specificDifficulty 1/5
After notice and a hearing, the Georgia Commissioner finds that an insurer committed an unfair trade practice. What civil penalty may the Commissioner impose under the cease and desist statute?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under O.C.G.A. § 33-6-9, after notice and a hearing the Commissioner may issue a cease and desist order against any person violating the unfair trade practices article and may impose a penalty of up to $10,000 for each act or violation, in addition to suspending or revoking licenses. Because the penalty accrues per act, a pattern of violations multiplies the exposure considerably.
Why the other options are wrong
- B) $1,000 is the felony threshold for premium misappropriation, not the maximum penalty under the cease and desist statute.
- C) The statute fixes a per-violation dollar cap rather than a multiple-of-harm formula.
- D) Monetary penalties are expressly available; license suspension or revocation is an additional sanction, not the only one.
Memory hook
Ten grand per slip — the Commissioner's price for unfair practices.