Utah Life Producer Practice Exam

The penalty for an insurance agent who repeatedly violates the insurance code being an administrative penalty of $5,000 to $50,000 per violation reflects the seriousness of ensuring compliance within the insurance industry. This range is established to deter agents from repeated infractions and emphasizes the regulatory body's commitment to maintaining ethical standards and protecting consumers. The significant monetary penalty also serves to highlight that violations are taken seriously and can lead to substantial financial repercussions, aiming to encourage agents to adhere strictly to legal guidelines.

In this context, the specified range of penalties further reinforces the importance of compliance by insurance agents, ensuring that they operate within the legal framework and maintain the integrity of the insurance system. Other responses either downplay the severity of the violation by suggesting lower fines or corrective measures that are not as impactful as financial penalties intended for repeated offenses.