State RegulationsTN specificDifficulty 2/5
A producer in Tennessee has been cited for violations of the state's insurance licensing provisions following a hearing. What monetary penalty may the Commissioner impose for those violations?
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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) authorizes the Commissioner, after hearing, to issue a cease-and-desist order and impose a monetary penalty of up to $1,000 per violation, capped at $100,000 in the aggregate; each day a violation continues counts as a separate violation. Suspension or revocation of the producer's license may accompany these monetary sanctions.
Why the other options are wrong
- A) The $1,000 per-violation figure is right, but T.C.A. § 56-6-112(g) caps the total at $100,000 in the aggregate.
- C) $500 is not Tennessee's per-violation penalty; the statute sets the maximum at $1,000 per violation.
- D) $100,000 is the aggregate ceiling, not the per-violation amount, and an aggregate cap does apply.
Memory hook
A grand per violation, a hundred grand all in — Tennessee's penalty frame.