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State RegulationsTN specificDifficulty 2/5

A Tennessee licensee has been ordered to stop a prohibited practice but continues the conduct day after day. How does T.C.A. § 56-6-112(g) treat the ongoing violation for penalty purposes?

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Answer & full 3-part explanation (select an option above, or peek)

Why A is correct

T.C.A. § 56-6-112(g) provides that each day of continued violation constitutes a separate violation. The Commissioner of the Tennessee Department of Commerce & Insurance can therefore count every additional day of defiance as a fresh violation worth up to $1,000, with the total accumulating toward the aggregate cap. This is why a cease-and-desist order is never a paper exercise: continuing the conduct multiplies the monetary exposure.

Why the other options are wrong

  • B) Merging a continuing course of conduct into one violation defeats the statute's explicit counting rule; the law says the opposite.
  • C) Discipline for violating the insurance laws belongs to the department, not to the licensee's insurers.
  • D) Continuing a violation never extends a license; it jeopardizes the license and adds penalties.

Memory hook

Every day you keep violating is a brand-new violation — the meter keeps running.

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