What is the civil penalty range for an insurance code violation?

The civil penalty range for an insurance code violation is set to ensure compliance with regulations and to deter misconduct in the insurance industry. A penalty range of $100 to $1000 serves as a balance between holding individuals or entities accountable for violations while not being excessively punitive. This range allows for flexibility depending on the severity of the violation, making it a fitting choice in promoting adherence to the insurance code.

The specified range also reflects a certain recognition of the need for corrective action rather than merely punishment. By keeping the penalties within this range, the regulation emphasizes the importance of compliance while providing sufficient incentive for insurance professionals to adhere to legal standards. Higher penalties, such as those found in other options, may be perceived as overly harsh for minor infractions, while lower penalties might fail to adequately enforce the seriousness of certain violations, leading to a lack of respect for the regulations in place.