State RegulationsTX specificDifficulty 1/5
Under TIC 84.022, what is the maximum administrative penalty the Commissioner of Insurance may impose for a violation of the Texas Insurance Code?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under TIC 84.022, the penalty for a violation may not exceed $25,000, unless a greater or lesser penalty is specified by this code or another insurance law of this state. The cap operates per violation, not per enforcement action, so a course of conduct involving several violations can produce a larger total. TIC 84.021 authorizes the commissioner to impose the penalty on a person licensed or regulated under this code, including a person who acts as an insurer without a certificate of authority, who violates the code, another insurance law, or a rule or order adopted under them.
Why the other options are wrong
- A) Chapter 84 does impose a statutory ceiling, so the amount is not wholly at the commissioner's discretion.
- B) The statute sets a maximum rather than tying the penalty to the full economic harm with no cap.
- C) $25,000 is a per-violation ceiling, not a total cap for all violations bundled into one enforcement action.
Memory hook
$25,000 per violation, unless the code says otherwise.