What penalty is imposed if an insurance company refuses to insure property due to geographical location?

In Rhode Island, if an insurance company refuses to insure property solely based on its geographical location, the penalty imposed is a fine of $500 for each violation. This regulation is in place to discourage discriminatory practices by insurance companies, ensuring that all individuals have access to insurance products regardless of where they live. This amount serves as a deterrent to prevent insurance providers from unjustly denying coverage based on location alone, which can disproportionately affect residents in certain areas.

The other options list higher penalties or more severe consequences, such as surrendering the certificate of authority or suspension from conducting business, which are typically reserved for more serious violations or repeated offenses. The specific fine of $500 aligns with regulatory measures aimed at maintaining fair underwriting practices within the insurance industry in Rhode Island.