Hawaii Insurance License Practice Exam

What is the maximum fine per violation of the Insurance Code?

1. $5,000

2. $10,000

3. $20,000

4. $50,000

The correct answer is: $10,000

The maximum fine per violation of the Insurance Code being set at $10,000 reflects the state's regulatory measures to ensure compliance within the insurance industry. This level of fine serves as both a deterrent and a means to uphold the integrity of insurance practices. Penalties are often established to safeguard consumers and reinforce the importance of adherence to regulations. A fine of $10,000 signifies a serious approach to violations, aiming to promote compliance, protect policyholders, and maintain public trust in the insurance system. Understanding these penalties is critical for individuals working in the insurance field, as it highlights the importance of following legal and regulatory standards. It also emphasizes the state’s commitment to upholding the rule of law within the insurance sector, ensuring that any infractions are met with substantial repercussions.