When can the Administrative Director assess civil penalties up to $100,000?

When can the Administrative Director assess civil penalties up to $100,000?

• A. For minor violations
• B. For certain prohibited general business practices
• C. For clerical errors
• D. For late payments

Answer: (B)

Civil penalties at the $100,000 level are reserved for serious violations tied to prohibited general business practices. This higher cap exists to deter conduct that undermines the integrity of self‑insurance plans, such as significant or systemic violations of the rules governing general business operations. In contrast, minor violations, clerical errors, or simply late payments are addressed with much smaller penalties or other remedies and do not trigger the $100,000 cap. So the best answer reflects that higher penalty authority applies specifically to those prohibited general business practices.

Civil penalties at the $100,000 level are reserved for serious violations tied to prohibited general business practices. This higher cap exists to deter conduct that undermines the integrity of self‑insurance plans, such as significant or systemic violations of the rules governing general business operations. In contrast, minor violations, clerical errors, or simply late payments are addressed with much smaller penalties or other remedies and do not trigger the $100,000 cap. So the best answer reflects that higher penalty authority applies specifically to those prohibited general business practices.