What is the civil penalty range for violating the insurance code?

The civil penalty range for violating the insurance code is established to ensure compliance with regulations and to deter misconduct within the insurance industry. The correct range of $100 to $1,000 reflects a structured approach to penalties that consider the severity of violations. This range is significant because it balances the need to enforce the law while still providing a reasonable penalty that recognizes the often complex nature of insurance practices.

Understanding that penalties can vary based on factors such as the nature of the violation, the frequency of similar offenses, and the intent behind the actions, this specific range suggests a focused effort to address minor to moderate infractions without imposing excessively harsh penalties that might not be appropriate for every situation. The structure allows both for accountability and the possibility of corrective measures.

In this context, other ranges, such as those that extend lower or much higher, either do not align with the standardized approach typically observed in North Dakota’s insurance regulations or suggest a level of violation that the code may not categorize. Keeping penalties within a specific range also helps maintain a consistent framework for enforcement, ensuring that individuals and companies understand the potential consequences of noncompliance.