State RegulationsTX specificDifficulty 1/5
What is the maximum administrative penalty that may be assessed for a single violation under TIC 84.022?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under TIC 84.022, an administrative penalty may not exceed $25,000 for each violation, unless this code or another insurance law of this state specifies a greater or lesser amount. Because the penalty is assessed per violation, a course of conduct made up of several distinct violations can add up quickly.
Why the other options are wrong
- B) The code does not compute the penalty as a multiple of the violator's economic benefit.
- C) The commissioner's discretion is capped by statute and the amount must reflect the factors listed in TIC 84.022.
- D) The penalty is not measured by the licensee's premium volume.
Memory hook
Cap it at twenty-five thousand per violation.