Life & Health · Chapter 20 · Enforcement
Cease-and-Desist Orders
Definition
The Department (DFS) or OIR serves a complaint on a licensee believed to be engaging in conduct that shows unfitness, endangers the insurance-buying public, or violates the code, a rule, an order, or a written agreement. The accused has a right to a hearing; if none is requested or the charges are proven, an order issues directing the party to stop the conduct and take corrective action. In extreme situations — such as charges that may lead to an insurer's insolvency — an emergency cease-and-desist order may issue without a hearing. Violating an order in effect brings a monetary penalty of up to $50,000, suspension or revocation of the certificate of authority or license, or other relief under the code.
In plain English
The regulator's stop sign — run it and the fine reaches $50,000 plus your license.
Exam tip
⚠️ $50,000 is the cease-and-desist violation cap — don't confuse it with the $12,500/$100,000 general trade-practice fines or the $187,500 willful twisting/churning fine.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms