Final answer:
The legality and penalties surrounding nonadmitted insurers depend on the specific state's laws and regulations. Agents can face misdemeanors or felonies and associated fines based on their actions with nonadmitted insurers. The exact penalties are determined on a case-by-case basis by the Insurance Commissioner or the courts.
Step-by-step explanation:
The question pertains to nonadmitted insurers and the potential consequences for agents acting on behalf of such insurers. Nonadmitted insurers are insurance companies that are not licensed to operate in a particular state but can still provide insurance under certain conditions. If an agent commits a crime, such as a felony, while representing a nonadmitted insurer, the state's regulations and laws will dictate the penalties, which can vary but often include fines and criminal charges.
In many jurisdictions, acting as an agent for a nonadmitted insurer without proper authorization is illegal and can be considered a misdemeanor or a felony, based on the severity and specific circumstances of the offense. An agent could face fines (such as the mentioned $1,000), penalties, or more severe criminal charges. The exact penalty would generally be determined by the state's insurance laws and the discretion of the Insurance Commissioner or a court of law, hence, the statement regarding case by case determination by the Insurance Commissioner. However, without specific information about the state or jurisdiction in question, it is not possible to definitively say which of the listed statements is true.