If found guilty of solicitation without authorization, what action may the Commissioner take?

When a broker is found guilty of solicitation without proper authorization, the Commissioner has the authority to take specific disciplinary actions to ensure compliance with the law and protect consumers. Among these actions, ordering the replacement of policies can be implemented as a corrective measure. This action addresses the legal and ethical violation, ensuring that affected clients have the correct coverage from authorized entities.

Replacing policies can serve various purposes, such as rectifying unjust situations where clients were sold coverage by an unauthorized broker, ensuring that consumers have proper legal protection, and maintaining the integrity of the insurance marketplace. This measure emphasizes the importance of accountability in the insurance profession and upholds regulatory standards.

In contrast to ordering replacements of policies, verbal warnings and business license revocations do not directly address the specific harm caused by unauthorized solicitation, nor do they assure that affected policyholders are adequately protected. Monetary fines may also not have the same immediate corrective impact on the involved parties. Thus, ordering replacements of policies is a more appropriate and effective response to such violations.