A Texas agent renews his license while short of the required continuing education hours. Under 28 TAC 19.1016, what administrative fine applies?

Why A is correct

28 TAC 19.1016 sets the continuing education deficiency fine at $50 for each hour the licensee failed to complete, capped at $500 per license for that renewal. Because the fine is assessed per hour, an agent who is short several hours pays more than one who is short a single hour, but the $500 ceiling keeps the sanction proportionate. The agent must still make up the deficiency, because a license that is not brought into compliance is subject to cancellation.

Why the other options are wrong

• B) The fine is assessed per missing hour, not as a single flat charge for the renewal.
• C) $25,000 is the maximum administrative penalty per violation under the Insurance Code's penalty provisions, not the continuing education deficiency fine.
• D) The per-hour amount is $50 and the fine is capped at $500 per license, not $500 per hour without limit.

Memory hook

$50 for each missing hour, $500 at most.

Why C is correct

Under 28 TAC 19.1016, adopted under the continuing education authority in TIC 4004.051-.054, an agent who renews with a continuing education deficiency is assessed $50 for each missing hour, capped at $500 per license. The fine is measured per missing hour but bounded per license, so even a large deficiency cannot produce an unlimited bill. The agent must still complete the deficient hours, because paying the fine does not erase the education obligation.

Why the other options are wrong

• A) There is no de minimis exemption; a deficiency of even 3 hours is subject to the per-hour fine.
• B) The $500 figure is the maximum per license and not the rate per missing hour; the rate is $50 per hour.
• D) The fine is not limited to missing ethics hours; every missing hour counts, and the remaining hours are not waived.

Memory hook

CE deficiency: $50 per missing hour, capped at $500 per license.