Texas Life Agent Practice Exam

If the Commissioner determines a person has intentionally violated an insurance regulation, what is the maximum fine that may be imposed?

1. $5,000

2. $10,000

3. $15,000

4. $25,000

The correct answer is: $25,000

When a Commissioner identifies that an individual has intentionally violated an insurance regulation, the law allows for substantial penalties to reinforce compliance and deter future infractions. The maximum fine imposed in such cases can reach $25,000. This figure serves as a strong warning to insurance agents and companies that the regulatory authority takes violations seriously and is prepared to enforce significant consequences to maintain the integrity of the insurance market. Lower amounts, such as $5,000, $10,000, or $15,000, do exist under certain circumstances or for lesser violations. However, for intentional violations, the legal framework is designed to apply a more severe financial penalty, which underscores the importance of adhering to regulations within the insurance industry.