State RegulationsMI specificDifficulty 3/5
A producer commits a licensing violation and knew or should have known the conduct violated the Michigan Insurance Code. What is the maximum civil fine per violation?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.C.L. 500.1244(1)(a) raises the fine where culpability is higher: a person who knew or should have known the conduct violated the licensing provisions faces a civil fine of up to $2,500 per violation, compared with $500 for an ordinary violation, subject to the $25,000 aggregate cap.
Why the other options are wrong
- A) $500 is the fine for ordinary violations without knowledge under M.C.L. 500.1244(1)(a).
- B) $1,000 is the claims-violation fine under M.C.L. 500.2006(13), not the knowing-licensing fine.
- D) $10,000 applies to knowingly violating a cease and desist order under M.C.L. 500.1244(3), not to ordinary knowing violations.
Memory hook
Knew or should have known? That's $2,500 a violation.