P&CMAmedium
Under c. 176D §7, civil penalties available to the MA Commissioner for unfair methods of competition or unfair or deceptive acts in the business of insurance are most accurately described as which of the following?
A fine of up to $1,000 for each act or practice, up to $10,000 per violation of a final cease and desist order under §10, plus possible license suspension or revocation
BA single flat $100 fine regardless of the number of violations, with no escalation for willful conduct and no authority to suspend or revoke any license
CLimited to nonmonetary written reprimands only
DDetermined solely by the insurer's board of directors
Why this is the answer
M.G.L. c. 176D §7 authorizes the Commissioner, after hearing, to issue a cease and desist order, to fine the violator not more than $1,000 for each and every act or practice, and — where the act or practice violates §3 or §4 — to suspend or, for repeated violations, revoke the license. Violating a final cease and desist order carries a separate forfeiture of up to $10,000 per violation under §10; there is no willfulness tier in c. 176D. The Commissioner may also order restitution to harmed consumers.
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