What happens when companies and agents do not follow the law?

When companies and agents fail to adhere to the law, the appropriate course of action is for the insurance commissioner to take enforcement measures. This enforcement is critical to maintaining the integrity of the insurance industry and protecting consumers. The insurance commissioner is tasked with overseeing compliance, and when violations occur, it is their responsibility to investigate and impose penalties or sanctions as necessary. These measures can include fines, suspensions, or even revocation of licenses, depending on the severity of the offense.

The other options may not accurately reflect the gravity of non-compliance with insurance regulations. Warnings may not always be issued, and appealing to the public is generally not an option in regulatory matters where legal requirements are involved. Additionally, the notion that there are no consequences contradicts the fundamental principles of regulatory oversight, which are designed to ensure accountability and ethical conduct within the insurance sector.