State RegulationsNC specificDifficulty 1/5
Following a hearing, the Commissioner of Insurance orders a civil penalty against a producer for a single violation of a Chapter 58 provision. What range applies to that penalty?
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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 not less than $100 nor more than $1,000 per violation of Chapter 58, in addition to or instead of suspension or revocation. Each day of a continuing violation is treated as a separate violation, and restitution may also be pursued 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 under G.S. 58-63-50, not the general civil penalty.
- C) The $2,000 to $10,000 fine is what a court imposes on an entity for a willful false statement under G.S. 58-2-180.
- D) No provision of G.S. 58-2-70 authorizes a blended range reaching $10,000 for an ordinary civil penalty.
Memory hook
General civil penalty: one hundred to one grand per violation - each day counts as a new one.