State RegulationsOH specificDifficulty 2/5
An Ohio court finds an insurer committed unfair trade practices in violation of ORC 3901.20. Under ORC 3901.22(F)(1), what civil penalty may the court impose?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
ORC 3901.22(F)(1) allows a court to impose a civil penalty of up to $3,500 per violation of the unfair-practice prohibitions, with an aggregate cap of $35,000 in any six-month period. A series of similar acts not occurring in separate sales transactions counts as a single violation, which limits how quickly the aggregate cap is reached.
Why the other options are wrong
- A) $25,000 per violation is the superintendent's administrative penalty under ORC 3905.14(E)(1); the court's unfair-practice penalty is smaller and capped.
- B) $10,000 per violation is the penalty for violating a cease-and-desist order under ORC 3901.22(F)(2), a different violation.
- C) $100,000 is the operating-fund maximum under ORC 3901.22(D), not a court penalty ceiling for unfair practices.
Memory hook
The court bites $3,500 a time, $35,000 per six months.