Which of the following best describes who may be guilty of a Class 3 Misdemeanor for willful violations of insurance regulations?

• A. A policyholder who files a false claim
• B. A company that complies with all regulations
• C. An insurer that reports promptly
• D. A licensed Insurance Producer who issues a policy in willful violation

Answer: (D)

This question tests who may be charged with a Class 3 misdemeanor for willful violations of insurance regulations. The focus is on the person who knowingly disregards the rules that govern how insurance is issued and marketed.

A policyholder who files a false claim is engaging in fraud, which is a serious crime, but its violation falls under fraud statutes rather than a willful breach of insurance regulations by a licensed person. A company that complies with all regulations or an insurer that reports promptly are acting within the law, so they would not be guilty of a willful regulatory violation. The licensed Insurance Producer who issues a policy in willful violation fits the statute precisely: a licensee who knowingly violates insurance laws or regulations by issuing a policy that does not meet regulatory requirements is subject to a Class 3 misdemeanor. This reflects the intent to sanction those who hold a regulatory authority and deliberately breach the rules, rather than ordinary disputes or purely fraudulent acts by non-licensees.