Georgia Navigator Practice Exam

What action can the Commissioner take for unfair competition or deceptive acts?

1. File a lawsuit against the company

2. Immediately revoke all insurance licenses

3. Issue a statement of charges and assess civil penalties

4. Notify the public of the issues

The correct answer is: Issue a statement of charges and assess civil penalties

The Commissioner has the authority to issue a statement of charges and assess civil penalties when encountering unfair competition or deceptive acts. This action serves to formally document the allegations against an insurance company or individual and initiate a process for adjudication. By issuing a statement of charges, the Commissioner outlines the specific violations that have occurred, allowing the accused party the opportunity to respond to the claims. Civil penalties can be imposed as a means of deterring future violations and enforcing compliance with state insurance regulations. This underscores the regulatory framework's intent to maintain fair practices within the insurance industry and protect consumers from unethical behavior. The process allows for a fair examination of the issues while ensuring that there are consequences for deceptive practices, fostering accountability. While other actions, such as filing a lawsuit or revoking licenses, may be considered in more severe circumstances, the issuance of a statement of charges represents a more immediate regulatory response that is within the Commissioner's purview and specifically tailored to address the situation.