What is the consequence for subsequent violations of record maintenance?

The consequence for subsequent violations of record maintenance involves increasing fines for each violation. This approach serves as a deterrent in the insurance industry, ensuring that companies adhere to regulations regarding the proper maintenance of records. By implementing escalating fines, the regulatory body emphasizes the importance of compliance and the seriousness of repeated infractions. This mechanism encourages insurers to maintain strict records and follow the established protocols, as failure to do so results in harsher penalties that accumulate with each infraction.

In the context of the insurance industry, effective record-keeping is vital for transparency, accountability, and the protection of policyholders. Increased financial penalties serve to reinforce these standards and promote adherence to the law.