Anderson's Business Law and the Legal Environment 20th Edition by David Twomey,Marianne Jennings

Exercise 11

A state law authorized the state's insurance commissioner to impose a fine and suspend the license of any insurance agent selling "unnecessary or excessive" insurance. The insurance commissioner fined Eloise, a licensed agent, $600 and suspended her license for three months for selling "unnecessary and excessive" insurance. She objected to this action on the ground that the statute under which the commissioner acted did not have any definitive meaning and the agency did not have the authority to define the term " unnecessary or excessive." Decide whether the agency had authority.