Hawaii Insurance License Practice Exam

What is the maximum fine for knowingly committing an unfair or deceptive act?

1. $25,000

2. $50,000

3. $75,000

4. $100,000

The correct answer is: $50,000

In the context of insurance regulation, the maximum fine for knowingly committing an unfair or deceptive act is indeed $50,000. This figure is established by state laws designed to protect consumers and maintain market integrity. The regulation targets actions that are identified as unfair or misleading, which can harm consumers or distort competition within the insurance industry. The significance of this fine amount serves as a deterrent against unethical practices, ensuring that insurers and their agents conduct business with transparency and fairness. By stipulating a specific monetary penalty for such violations, regulators aim to reinforce ethical standards and accountability, which in turn fosters trust in the insurance system as a whole.