State RegulationsTX specificDifficulty 3/5
Under TIC 84.022, how is the amount of an administrative penalty for a violation of the Insurance Code determined?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under TIC 84.022, an administrative penalty may not exceed $25,000 per violation unless a greater or lesser penalty is specified by the Insurance Code or another insurance law, and the amount within that range is set by weighing the seriousness of the violation, the economic harm caused, the person's history of previous violations, the amount needed to deter, efforts to correct, whether the violation was intentional, and other matters justice requires. Practical consequence: the cap is per violation, so a course of conduct involving several violations can produce a total well above $25,000.
Why the other options are wrong
- A) The $25,000 figure is a per-violation maximum, not a cap on an entire proceeding in which multiple violations are found.
- C) The penalty is not fixed; the statute requires the amount to be set by weighing the seriousness of the violation and the other listed factors.
- D) $500 is the maximum continuing education deficiency fine per license, not the cap on an administrative penalty under Chapter 84.
Memory hook
Think $25,000 per violation, not per case.