State RegulationsTN specificDifficulty 2/5
When the Commissioner of the Tennessee Department of Commerce & Insurance takes disciplinary action against a licensee for licensing violations, which remedy accompanies the monetary penalty under T.C.A. § 56-6-112(g)?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
T.C.A. § 56-6-112(g) pairs the monetary penalty with a cease-and-desist order commanding the licensee to stop the violating conduct, and it further authorizes suspension or revocation of the license. The Commissioner of the Tennessee Department of Commerce & Insurance thus holds escalating tools: stop the conduct, fine it, and if necessary remove the privilege of holding the license. The combination is what gives the order practical force.
Why the other options are wrong
- A) The department can order conduct to stop and can penalize or suspend; it does not confiscate a book of business and hand it to a competitor.
- B) Compliance is not negotiated through courtesy calls; the order compels cessation and carries penalties for defiance.
- C) The statute provides suspension and revocation, not conversion of a license to a different line.
Memory hook
Stop (cease-and-desist), pay (fine), or lose it (suspension or revocation) — the order means business.