A Colorado insurer continues transacting business in violation of a cease and desist order that is already in effect. After a hearing, what is the maximum monetary penalty per act for the insurer under C.R.S. § 10-3-1109(1)?

Why D is correct

C.R.S. § 10-3-1109(1) governs violations of an existing cease and desist order: the penalty is not more than $10,000 per act for an insurer and not more than $500 per act for an individual, in addition to suspension or revocation of the license. Defying an order already in effect is punished more severely than the initial violation under C.R.S. § 10-3-1108.

Why the other options are wrong

• A) $500 per act is the C.R.S. § 10-3-1109 penalty for an individual who violates an existing order, not for an insurer.
• B) $3,000 per act is the baseline C.R.S. § 10-3-1108 penalty for an initial unfair-competition violation without a prior order.
• C) $30,000 per act is the C.R.S. § 10-3-1108 knowing-insurer figure, which applies to part 11 violations, not to defiance of an existing order.

Memory hook

Breaking the order costs ten times more — ten grand per act for insurers.