State RegulationsGA specificDifficulty 1/5
After notice and a hearing, the Insurance Commissioner finds that an insurer committed two separate violations of Georgia's unfair-trade-practices provisions. What monetary penalty may the Commissioner impose?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under O.C.G.A. § 33-6-9, a violation that continues after notice and hearing exposes the violator to a civil penalty of up to $10,000 for each act or violation, and each violation is counted separately. The monetary penalty may be accompanied by suspension or revocation of licenses, so repeated conduct multiplies the exposure quickly for insurers and producers alike.
Why the other options are wrong
- B) The statute is written per act or violation; separate violations are not bundled into one cap.
- C) $5,000 is not the Georgia figure for this administrative penalty; the per-act maximum is $10,000.
- D) There is no per-investigation total; each separate act may be penalized on its own.
Memory hook
Per act, not per case — Georgia fines violations one by one.