State RegulationsNC specificDifficulty 1/5
The North Carolina Commissioner of Insurance finds a producer committed a routine violation of the insurance code and orders a civil penalty. What range may the Commissioner impose per violation?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
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.