The Commissioner finds that a producer violated a provision of Chapter 58 and orders an administrative civil penalty instead of suspending the license. What penalty range may be ordered per violation, and how is a continuing violation counted?

Why D is correct

Under G.S. 58-2-70(d), the Commissioner may order a civil penalty of not more than $1,000 nor less than $100 per violation of Chapter 58, in addition to or in lieu of suspension or revocation, and each day of a continuing violation constitutes a separate violation. This administrative penalty is the general-purpose tool for regulatory violations.

Why the other options are wrong

• A) $1,000 to $5,000 is the range for willfully violating a cease-and-desist order under G.S. 58-63-50, and continuing violations accrue one violation per day.
• B) $2,000 to $10,000 is the court fine on an entity for willful false statements under G.S. 58-2-180, not the Commissioner's civil penalty range.
• C) The statute sets a range from $100 up to $1,000 per violation under G.S. 58-2-70(d); it is not a flat $100, and continuing conduct adds violations per day.

Memory hook

Civil penalty: a hundred to a grand, and every day starts a new violation.

Why A is correct

Under G.S. 58-2-70(d), the Commissioner of Insurance may order a civil penalty of $100 to $1,000 for each violation of Chapter 58, in addition to or instead of suspension or revocation of the license. Each day a continuing violation persists is treated as a separate violation, so penalties can accumulate daily. This is the general penalty tier that backs most producer and insurer violations in North Carolina.

Why the other options are wrong

• B) $1,000 to $5,000 is the forfeiture range for willfully violating a cease-and-desist order under G.S. 58-63-50, not the general civil penalty.
• C) $2,000 to $10,000 is the fine a court imposes on an entity under G.S. 58-2-180 for a willful false statement, not the Commissioner's general civil penalty.
• D) The statute fixes the range at $100 to $1,000 per violation; the Commissioner has no unlimited discretion under G.S. 58-2-70.

Memory hook

General civil penalty: one hundred to one grand per violation - and each day counts as a new one.

Why A is correct

Under G.S. 58-2-70(d), the Commissioner may order a civil penalty of not less than $100 nor more than $1,000 per violation of Chapter 58, in addition to or instead of suspension or revocation, and each day of a continuing violation constitutes a separate violation. A week-long violation can therefore accumulate multiple penalties, and restitution may also be pursued through Wake County Superior Court under G.S. 58-2-70(c),(e).

Why the other options are wrong

• B) $1,000 to $5,000 is the penalty for willfully violating a cease-and-desist order under G.S. 58-63-50, a different trigger.
• C) $2,000 to $10,000 is the court fine on a business entity for willful false statements under G.S. 58-2-180, not the general civil penalty.
• D) The general civil penalty floor is $100, not $50, and continuing violations accrue per day.

Memory hook

One hundred to a thousand per slip, and every day is a new slip.

Why A is correct

Under G.S. 58-2-70(d), the Commissioner may order a civil penalty of $100 to $1,000 per violation of Chapter 58, in addition to or instead of suspension or revocation, and each day of a continuing violation is a separate violation. This general civil-penalty tier applies to ordinary code violations, with restitution also available through Wake County Superior Court.

Why the other options are wrong

• B) The $1,000 to $5,000 range is the forfeiture for willfully violating a cease-and-desist order, a distinct and more serious trigger.
• C) The $2,000 to $10,000 fine is imposed by a court on an entity for willful false statements, not by the Commissioner in a routine civil penalty.
• D) No $50,000-per-violation civil penalty exists in North Carolina insurance law.

Memory hook

Ordinary violation: one hundred to one grand, per day counts too.

Why C is correct

Under G.S. 58-2-70(d), the Commissioner of Insurance may order a civil penalty of $100 to $1,000 per violation of Chapter 58, in addition to or instead of suspension or revocation of the license. Each day of a continuing violation counts as a separate violation, so the per-violation range can multiply quickly against a producer who keeps committing the act.

Why the other options are wrong

• A) The $1,000 to $5,000 range applies only to willful violation of a cease-and-desist order under G.S. 58-63-50, not to an ordinary Chapter 58 violation.
• B) The $2,000 to $10,000 fine is imposed by a court on an entity for willful false financial statements under G.S. 58-2-180, a different trigger entirely.
• D) G.S. 58-2-70(d) sets a per-violation range, not a flat fine, and each day of a continuing violation is a separate violation.

Memory hook

General civil penalty: one hundred to one thousand per violation - the Commissioner's everyday range.

Why A is correct

Under G.S. 58-2-70(d), the Commissioner may order a civil penalty of not more than $1,000 nor less than $100 per violation of Chapter 58, in addition to or instead of suspending or revoking a license. Subsection (e) provides that each day of a continuing violation constitutes a separate violation, so the penalty multiplies across the days the conduct persists. Restitution may also be pursued through Wake County Superior Court.

Why the other options are wrong

• B) The $1,000 to $5,000 range applies to willful violation of a cease-and-desist order under a different statute, not to the general civil penalty for a Chapter 58 violation.
• C) The $2,000 to $10,000 range is the court fine imposed on an entity for willful false statements, and continuing conduct counts per day, not as one violation.
• D) There is no flat fine; the statute sets a per-violation range of $100 to $1,000 and treats each day of continuation as a new violation.

Memory hook

General civil penalty: $100 to $1,000, and every day is a fresh violation.

Why C is correct

Under G.S. 58-2-70(d), the Commissioner may order a civil penalty of $100 to $1,000 for each violation of Chapter 58, in addition to or instead of suspension or revocation of the license. G.S. 58-2-70(c) makes each day of a continuing violation a separate violation, so penalties can accumulate, and restitution may also be pursued through Wake County Superior Court under G.S. 58-2-70(e).

Why the other options are wrong

• A) $1,000 to $5,000 is the forfeiture for willfully violating a cease-and-desist order under G.S. 58-63-50, not the general civil penalty range.
• B) $2,000 to $10,000 is the court fine on an entity for willful false statements under G.S. 58-2-180, not the standard civil penalty range.
• D) G.S. 58-2-70(d) fixes the range at $100 to $1,000 per violation; the Commissioner has no unlimited penalty discretion.

Memory hook

General violations cost $100 to $1,000 each — the modest middle tier.