What is the maximum penalty per violation for an agent who willfully violates the insurance code?

The correct answer reflects the maximum penalty for a willful violation of the insurance code by an agent, which is set at $5,000 per violation. This amount aligns with regulatory provisions that aim to deter unethical behavior among insurance agents by imposing significant financial repercussions for violations of the law.

The rationale behind establishing such penalties is to maintain the integrity of the insurance market and protect consumers from potential financial harm due to negligence or misconduct. The higher penalty recognizes the serious nature of willful violations, which may undermine public trust and the overall stability of the insurance system.

In contrast to the other potential penalty amounts provided in the answer choices, $5,000 serves as a clear and firm commitment by regulators to uphold standards within the industry, making it essential for agents to adhere strictly to the established laws and rules governing their practices.