State RegulationsTN specificDifficulty 1/5
Under T.C.A. § 56-6-112(g), what monetary penalty may the Commissioner impose for a violation of Tennessee's licensing provisions, in addition to a cease-and-desist order?
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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)–(3) authorizes the Commissioner to issue a cease-and-desist order and to impose a monetary penalty of up to $1,000 per violation for licensing violations, subject to an aggregate cap of $100,000, and license suspension or revocation is also available. The per-violation figure is what accumulates when a violation continues, because each day of continued violation counts as a separate violation.
Why the other options are wrong
- A) $500 is a limit used in other Tennessee insurance contexts, not the per-violation civil penalty under T.C.A. § 56-6-112(g).
- C) $100,000 is the aggregate cap on penalties under T.C.A. § 56-6-112(g), not the per-violation amount.
- D) $250,000 is a guaranty-association figure, not a licensing-penalty amount under T.C.A. § 56-6-112(g).
Memory hook
One grand per slip: $1,000 each violation, $100,000 the ceiling.