State RegulationsTN specificDifficulty 1/5
Under Tennessee law, what is the maximum monetary penalty the Commissioner may impose per violation when taking disciplinary action against a licensee for licensing violations?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
T.C.A. § 56-6-112(g)(1) authorizes the Commissioner of the Tennessee Department of Commerce & Insurance to impose a cease-and-desist order and a monetary penalty of up to $1,000 per violation for licensing violations. The per-violation figure is deliberately modest; the law's real force comes from the counting rule and the aggregate cap that surround it. Fix $1,000 in mind as the per-violation ceiling and keep it separate from the batch-level cap.
Why the other options are wrong
- A) $100,000 is the aggregate cap across violations under T.C.A. § 56-6-112(g)(3), not the per-violation amount.
- C) $300,000 is a guaranty-association benefit limit, unrelated to disciplinary penalties.
- D) $250,000 is a guaranty-association limit for annuity exposures, not a licensing penalty.
Memory hook
A grand per violation — $1,000 each — with a much bigger ceiling waiting behind it.