State RegulationsNC specificDifficulty 1/5
After a hearing, the Commissioner of Insurance finds that a producer committed a single violation of the North Carolina Insurance Code for which no other specific penalty is provided. What civil penalty may the Commissioner order for this violation?
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Answer & full 3-part explanation (select an option above, or peek)
Why D 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 for each violation of Chapter 58, in addition to or in lieu of suspension or revocation of the license. Under G.S. 58-2-70(c), each day a continuing violation persists is treated as a separate violation, so penalties can accumulate for ongoing misconduct.
Why the other options are wrong
- A) $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 range.
- B) $2,000 to $10,000 is the fine a court imposes on an entity for willful false statements under G.S. 58-2-180, not the Commissioner's general civil penalty.
- C) $5,000 to $25,000 is not a penalty range found in North Carolina insurance law at all.
Memory hook
General civil penalty: one hundred to one grand per hit.