Georgia Adjuster Practice Test

What is the penalty for an insurance company that violates the insurance code after a hearing?

1. Up to $1,000 for each act

2. $2,000 for each act of misconduct

3. $10,000 for each act of willful misconduct

4. $5,000 for each act of misconduct

The correct answer is: $2,000 for each act of misconduct

The penalty for an insurance company that violates the insurance code after a hearing is set at $2,000 for each act of misconduct. This amount reflects the regulatory framework governing insurance practices, where penalties are imposed to deter non-compliance and protect consumers. The $2,000 penalty serves as a significant incentive for insurance companies to adhere to the rules established to ensure fair dealings and service delivery to policyholders. This figure is applicable specifically for acts deemed as misconduct rather than willful violations, which could incur higher penalties. The distinctions in penalty amounts for different levels of misconduct help to delineate the severity of the infractions, ensuring that consequences are proportional to the nature of the violation.