Which of the following is true about the director's role under the insurance code?

The director's ability to enforce penalties is an essential aspect of their role under the insurance code. This enforcement power allows the director to ensure compliance with regulations and laws governing the insurance industry. By having the authority to impose penalties, the director helps maintain the integrity of the insurance market, protecting both consumers and legitimate insurers.

This role also involves overseeing the activities of insurance companies, ensuring that they abide by the laws and regulations set forth in the insurance code. The ability to enforce penalties is crucial for discouraging non-compliance and promoting fair practices within the industry.

In contrast, the other options do not accurately reflect the scope of the director's authority. The director does have rule-making powers, investigative capabilities, and the ability to advise on changes to laws and regulations, but they are not limited to recommendations or only basic enforcement. These powers collectively enhance the director’s ability to govern effectively and uphold the standards of the insurance industry.