State RegulationsNC specificDifficulty 2/5
Following an examination by the North Carolina Department of Insurance, the Commissioner finds that a producer committed violations of Chapter 58 and orders a civil penalty without suspending the license. What range may the Commissioner impose for each violation?
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Answer & full 3-part explanation (select an option above, or peek)
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.