What is the minimum fine for placing coverage with an insolvent carrier?

The minimum fine for placing coverage with an insolvent carrier is established in regulatory guidelines that govern the surplus lines industry. When a broker places insurance with an entity that is insolvent, it poses significant risks to policyholders and undermines the integrity of the insurance market.

The amounts designated in regulations, including the minimum fine, serve as a deterrent against unethical practices and encourage brokers to conduct thorough due diligence before placing coverage. A fine of $100 is intended to reinforce the seriousness of ensuring that carriers are solvent and able to meet their obligations to policyholders. This regulatory measure highlights the importance of protecting consumers and maintaining a reliable insurance environment.

While the other options represent varying amounts of fines, they do not reflect the established regulatory minimum for this specific violation in Washington's surplus lines framework. Understanding the implications of working with insolvent carriers is crucial to prevent financial losses and maintain compliance with state insurance laws.