What is the maximum administrative fine for engaging in an unfair or deceptive practice?

The maximum administrative fine for engaging in an unfair or deceptive practice is set at $5,000 per violation. This amount reflects the regulatory framework designed to hold insurers and agents accountable for practices that could unfairly harm consumers or undermine the integrity of the insurance marketplace. By establishing a fine of this magnitude, the intention is to provide a significant deterrent against such practices and to ensure that violators face meaningful consequences for their actions.

It is essential to understand that the fine serves not only as punishment but also as a mechanism to promote fairness and transparency in the insurance industry. The higher the fine, the more it emphasizes the importance of ethical conduct within the field. In contrast, lower fine amounts do not convey the same level of seriousness regarding the consequences of unfair or deceptive practices.