What is the maximum penalty for an insurer that employs unlicensed producers for each policy sold?

The maximum penalty for an insurer that employs unlicensed producers for each policy sold reflects stringent regulatory measures to ensure that all individuals engaging in the sale of insurance products are appropriately licensed. This is crucial for consumer protection, as unlicensed producers may not meet the required knowledge and ethical standards necessary for the role. The penalty serves as a deterrent to discourage insurers from non-compliance with licensing laws and emphasizes the importance of adhering to regulatory requirements in the insurance industry. By having a substantial fine per policy sold, it reinforces the accountability of insurers to ensure that all their producers are properly licensed, maintaining the integrity and trustworthiness of the insurance marketplace.