P&CPennsylvaniamedium
A Pennsylvania P&C producer is found to have intentionally misrepresented coverage to a client to induce purchase. Under 40 P.S. § 310.11, which sanction is the Insurance Commissioner authorized to impose in addition to license discipline?
A civil monetary penalty up to $5,000 per violation
BA civil monetary penalty up to $1,000 per violation
CA criminal fine of $25,000 per violation
DTreble damages payable directly to the affected consumer
Why this is the answer
Section 310.11 of Title 40 P.S. authorizes the Pennsylvania Insurance Commissioner, after a hearing under the PA Administrative Agency Law (2 Pa.C.S. § 504), to suspend, revoke, or refuse to renew a producer's license for enumerated grounds including intentional misrepresentation. The Commissioner may also impose a civil monetary penalty of not more than $5,000 per violation. Criminal fines and consumer damages are not within the Commissioner's administrative reach.
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