Question

Any insurer who engages in the insurance business and violates the code with respect to insurance replacement shall on the first violation.

A) Be fined a sum of $10,000.
B) Be fined a sum no less than $30,000 and no more than $300,000.
C) Have his/her license suspended.
D) Be fined a sum of $1,000.

Answer 1

A) Be fined a sum of $10,000

Step-by-step explanation:

The insurer will be fined a sum of $10,000 for the first violation.

And if the insurer repeats the violation the insurer will be liable for penalties of no less than $30,000 and no more than $300,000. Any insurance agent who commits a knowing or repeated violation of the code with respect to insurance replacement, the insurance agent shall be liable for penalties of no less than $5.000 and no more than $50,000 for each violation. Any agent who violates the replacement provision of the code will be fined $1,000.