Pet insurance rules come with teeth. Under Insurance Code §§12880.3 and 12880.4, when the Insurance Commissioner has reason to believe a person has violated these sections and a proceeding would be in the public interest, the person is subject to an administrative hearing. The Commissioner issues an order to show cause, and the hearing date in it must be not less than 30 days after service.
If the charges are proved, the Commissioner orders the person to pay a civil penalty and to cease and desist. The penalty limits:
Up to $5,000 for each violation
Up to $10,000 for each violation if the violation is willful
Memory hook: 30 days to the hearing; $5,000 per violation, doubled to $10,000 when willful.