(a) A director or officer of an insurer or insurance holding company system that is subject to this chapter is subject to an administrative penalty under Chapter 84 if the director or officer knowingly and wilfully:
(1) participates in or assents to a transaction or an investment that has not been properly reported or submitted under this chapter;
(2) permits an officer, agent, or employee of the insurer or holding company system, as appropriate, to engage in a transaction or make an investment that has not been properly reported or submitted under this chapter; or
(3) violates this chapter.
(b) The amount of an administrative penalty under this section may not exceed $10,000 for each violation.