What is the civil penalty for filing false affidavits regarding cancellation of the appointment of an insurer?

• A. Civil penalty of not less than $250 nor more than $2500 for each occurrence.
• B. A civil penalty of $50 for each occurrence.
• C. A civil penalty of $10,000 for each occurrence.
• D. A civil penalty of not less than $100 nor more than $1000 for each occurrence.

Answer: (A)

Penalties for filing false affidavits about canceling an insurer’s appointment are set to deter misrepresentation and ensure the regulator has a clear consequence for false filings. The statute specifies a civil penalty not less than $250 and not more than $2500 for each occurrence. This aligns with the choice that states a range of $250 to $2500 per occurrence, making it the correct option. Remember, the penalty is assessed per occurrence, so every false affidavit can incur its own penalty. The civil nature means this is an administrative penalty imposed by the regulator, not a criminal fine. The other suggested amounts fall outside the specified range or are not aligned with the per-occurrence structure.