State RegulationsTN specificDifficulty 1/5
A licensee in Tennessee has committed multiple licensing violations. Under T.C.A. § 56-6-112(g)(3), what is the aggregate cap on the monetary penalties the Commissioner may impose for those violations?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
T.C.A. § 56-6-112(g)(3) caps the aggregate monetary penalty for licensing violations at $100,000, no matter how many separate violations the Commissioner counts. The Commissioner of the Tennessee Department of Commerce & Insurance imposes up to $1,000 per violation under T.C.A. § 56-6-112(g)(1), but the accumulation stops at the aggregate ceiling. This structure lets the state scale discipline with the scope of misconduct while keeping the total exposure bounded.
Why the other options are wrong
- A) $1,000 is the per-violation maximum under T.C.A. § 56-6-112(g)(1), not the aggregate limit.
- B) $500,000 is a guaranty-association figure for basic hospital and major medical coverage, not the penalty cap.
- D) $250,000 belongs to the guaranty-association limit table for annuities, unrelated to disciplinary penalties.
Memory hook
Per violation $1,000, grand total $100,000 — remember both ends of the ladder.