Texas Statutes and Rules Pertinent to Property and Casualty Insurance Practice Test

In Texas, transacting insurance without a license is a violation of the insurance laws, and enforcement centers on penalties imposed by the regulatory authority. The idea captured by “penalties including fines” is that penalties do exist and fines are a common, readily enforceable remedy. While the regulator can also take other actions—such as suspending or revoking a license or, in some cases, pursuing criminal charges—these outcomes depend on the specific facts and statutes involved. The question’s best answer highlights fines as a primary form of penalty you should expect to encounter for unlicensed activity.