What is the penalty for willfully engaging in unauthorized transactions of insurance?

The correct choice indicates that the penalty for willfully engaging in unauthorized transactions of insurance can reach an administrative fine of not more than $10,000. This penalty reflects the seriousness of engaging in unauthorized insurance activities, which can undermine the integrity of the insurance market and lead to consumer harm.

By setting the penalty at this amount, regulatory authorities aim to deter individuals and entities from participating in illegal transactions that violate insurance laws and regulations. This penalty structure acknowledges the need for compliance and safeguards in the insurance industry, emphasizing that individuals must operate within legal parameters to protect consumers and maintain public trust in insurance practices.