What are the penalties for violations of Texas unfair insurance practices?

• A. Administrative fines.
• B. License suspension.
• C. License revocation.
• D. Administrative fines, license suspension or revocation, and other disciplinary actions.

Answer: (D)

When a Texas unfair insurance practice violation occurs, the regulating body has multiple ways to respond, not just one remedy. Administrative fines provide a monetary penalty to deter misconduct and compensate for the violation. License suspension or revocation removes the individual’s or entity’s authority to operate within the industry, protecting consumers and maintaining market integrity. In addition, the regulator can impose other disciplinary actions tailored to the situation, such as orders to cease and desist, restitution, corrective action plans, or required education. Because all of these tools can be used depending on the severity and nature of the violation, the complete set of penalties—fines, license actions, and other disciplinary measures—best captures the range of possible consequences.