State RegulationsGA specificDifficulty 1/5
After notice and a hearing, the Georgia Insurance Commissioner finds that an insurer has violated the unfair trade practices article. The Commissioner may impose a civil penalty of up to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under O.C.G.A. § 33-6-9, once a violation is established after notice and hearing, the Insurance Commissioner may order the violator to cease and desist and may impose a penalty of up to $10,000 for each act or violation, in addition to suspending or revoking the license. The per-act formulation means a course of misconduct accrues penalties violation by violation, and the order becomes enforceable in the courts if ignored.
Why the other options are wrong
- B) $5,000 is the bad-faith penalty figure, not the cease and desist ceiling; premium refunds are not the Commissioner's tool here.
- C) The per-violation ceiling is higher, and the Commissioner's authority expressly includes suspending or revoking the license.
- D) The statutory maximum is far above that figure, and community service is not part of the cease and desist framework.
Memory hook
Hear it, then hit it: up to 10 grand per violation plus the license on the line.