State RegulationsGA specificDifficulty 1/5
After notice and a hearing, the Commissioner issues a cease and desist order against a producer who repeatedly violated Georgia insurance law. What is the maximum administrative penalty for each act or violation?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under O.C.G.A. § 33-6-9, a person found after notice and hearing to have violated the insurance laws, or who violates a cease and desist order, may be penalized by up to $10,000 for each act or violation, in addition to suspension or revocation of the license or other authority involved. The per-act structure means repeated violations multiply the exposure.
Why the other options are wrong
- A) $1,000 is the felony threshold for willful premium misappropriation, not the per-act administrative penalty cap.
- B) $5,000 is associated with the bad-faith penalty formula, not the administrative penalty under the cease and desist statute.
- D) The statute does cap the per-act penalty at $10,000.
Memory hook
Ten thousand dollars per violation — and the license can still be pulled.