Which of the following is NOT listed as a permissible penalty for violating the insurance code or an order of the Commissioner?

• A. Fine a person without giving notice
• B. Deny an application for an original license
• C. Suspend a license for up to one year
• D. Revoke or deny renewal

Answer: (A)

Notice and due process are required before the regulator can discipline someone. The Commissioner can take actions like denying an original license, suspending a license, or revoking or denying renewal, but any penalty that involves a monetary fine must be imposed with proper notice and the opportunity for a hearing. Fining a person without giving notice bypasses that due process, so it is not permissible. The other penalties—denying an original license, suspending a license for up to a year, and revoking or denying renewal—are actions that can be taken as part of the enforcement process after the required notice and procedures.