State RegulationsGA specificDifficulty 2/5
After notice and a hearing, the Georgia Insurance Commissioner issues a cease-and-desist order against a producer who repeatedly violated the insurance laws. In addition to suspension or revocation, what civil penalty may be imposed for each violation?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under O.C.G.A. § 33-6-9, when a person violates the insurance laws and continues after notice and hearing, the Commissioner may issue a cease-and-desist order and impose a penalty of up to $10,000 for each act or violation, in addition to suspending or revoking the license. The per-act structure means a pattern of violations multiplies the exposure rather than being lumped into a single fine.
Why the other options are wrong
- A) $5,000 is not the Georgia cease-and-desist ceiling; O.C.G.A. § 33-6-9 authorizes up to $10,000 for each act or violation.
- B) The penalty is neither flat nor aggregated per proceeding — it accrues per act, up to $10,000 each, under O.C.G.A. § 33-6-9.
- D) There is no per-investigation cap of $100,000; the statute multiplies penalties by the number of acts or violations.
Memory hook
Cease and desist in Georgia: ten grand per act, and your license on the line.