What is the penalty for an unwilful act or violation of the insurance code?

The penalty for an unwilful act or violation of the insurance code is established to address minor infractions where intent is not considered. In this context, being placed on probation for one year is a corrective measure that allows individuals or agents to remain in practice while rectifying their compliance issues. This timeframe balances accountability with the opportunity for the agent to improve their understanding of the insurance code and the regulations governing their practice.

A more extended probation period, such as for two or three years, would be seen as excessive for unwilful acts, as those typically do not reflect deliberate disregard or malicious intent. Therefore, a one-year probation serves as an appropriate and reasonable consequence, allowing agents to demonstrate their commitment to compliance and adherence to the standards expected in the insurance industry.