What is the maximum penalty the Commissioner may impose for severe violations?

The correct answer reflects the authority of the Commissioner of Insurance in cases of severe violations related to property insurance. When significant breaches occur—such as fraudulent activities, gross negligence, or failure to comply with essential regulations—the most severe consequence that can be enforced is the revocation of a license. This action is taken to protect the integrity of the insurance market and to ensure that only those who adhere to the laws and ethical standards continue to operate within the industry.

Revocation serves as a strong deterrent against severe violations, emphasizing the importance of regulatory compliance. While fines and suspensions may also be levied for various infractions, they are generally associated with lesser violations or more temporary issues. In contrast, revocation signifies a complete termination of the right to conduct insurance-related business, marking it as the maximum penalty available for the most serious offenses. This action aligns with the Commissioner’s responsibility to maintain public trust and uphold the standards of the insurance industry.