What is the potential punishment for transacting insurance without a license?

Transacting insurance without a proper license is a serious violation in California, and the law imposes significant penalties to deter such unlawful activities. The potential punishment of being fined up to $50,000 or facing up to one year in jail reflects the gravity with which this violation is treated. The financial penalty underscores the potential for substantial harm to consumers and the insurance market, as operating without a license can lead to unethical practices and exploitation. The possibility of jail time indicates that the state also views this as a criminal matter, emphasizing the need for regulation in the insurance sector to protect both consumers and the integrity of the industry.

The other responses either suggest more lenient penalties or non-penal consequences, which do not align with the legal frameworks established for unauthorized insurance transactions in California.