State RegulationsMI specificDifficulty 1/5
What is the maximum civil fine per violation the director may impose on a person for an ordinary violation of the licensing provisions of the Michigan Insurance Code?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
M.C.L. 500.1244(1)(a) authorizes a civil fine of up to $500 per violation for a person who violates the licensing provisions, with an aggregate cap of $25,000, and up to $2,500 per violation if the person knew or should have known the conduct violated the Code. The base figure for ordinary violations is $500.
Why the other options are wrong
- B) $1,000 is the per-violation fine for violating the timely claims payment provisions under M.C.L. 500.2006(13).
- C) $2,500 is the enhanced fine for a person who knew or should have known, not the ordinary fine.
- D) $25,000 is the aggregate cap for licensing fines under M.C.L. 500.1244(1)(a), not the per-violation amount.
Memory hook
Ordinary slip-up: $500 each, $25,000 all in.