State RegulationsTX specificDifficulty 2/5
In determining the amount of an administrative penalty under Chapter 84, which factor is the Commissioner of Insurance required to consider?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
TIC 84.022 lists the factors the commissioner must weigh, including the seriousness of the violation, the economic harm it caused, the person's history of previous violations, the amount needed to deter future violations, efforts made to correct the violation, whether the violation was intentional, and any other matters justice requires. The statute does not allow the amount to turn on the licensee's own coverage or on the complainant's choices.
Why the other options are wrong
- B) Errors and omissions coverage is not one of the statutory penalty factors.
- C) How long a person has held a license is not a listed factor in setting the amount.
- D) Whether the complainant hired a lawyer is irrelevant to the amount the commissioner assesses.
Memory hook
Seriousness, harm, history, deterrence, correction, intent.