Which statement is accurate regarding a willful violation of insurance regulations?

• A. It qualifies as a Class 3 Misdemeanor
• B. It is always a felony
• C. It carries only a civil penalty
• D. It has no criminal consequence

Answer: (D)

Regulatory violations that are willful are treated as civil/regulatory matters by the state insurance department. When someone willfully violates insurance regulations, the department can impose civil penalties, fines, and administrative actions such as license suspension or revocation. There is no automatic criminal charge simply for a willful violation of these regulations; criminal penalties would require separate acts defined by criminal statutes, like fraud. So the idea that a willful regulatory violation carries no criminal consequence is accurate in this context, since enforcement is typically civil or administrative unless fraud or another crime is involved.