State RegulationsCO specificDifficulty 2/5
An insurer in Denver continues the same practices that the Colorado Commissioner of Insurance had ordered it to cease and desist. Under C.R.S. § 10-3-1109(1), what is the maximum penalty per act for violating the existing order?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
C.R.S. § 10-3-1109(1) penalizes violating an existing cease and desist order at not more than $10,000 per act for an insurer and not more than $500 per act for an individual, and the Commissioner may additionally suspend or revoke the violator's license. This schedule is distinct from the first-violation penalties of C.R.S. § 10-3-1108 and must not be blended with them.
Why the other options are wrong
- A) Those figures do not appear in C.R.S. § 10-3-1109(1); the statute sets $10,000 per act for an insurer and $500 per act for an individual.
- B) The $30,000-per-act and $750,000-annual caps come from the knowing-insurer penalty in C.R.S. § 10-3-1108(1)(a), a different provision.
- D) The $10,000-per-act maximum applies to insurers; an individual who violates the order is subject to no more than $500 per act.
Memory hook
Ignoring a C&D order: insurer $10,000, person $500, per act.