State RegulationsCO specificDifficulty 2/5
An insurer in Boulder continues the very conduct that an existing cease and desist order prohibits. Under C.R.S. § 10-3-1109, what penalty may be imposed for violating the order?
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Answer & full 3-part explanation (select an option above, or peek)
Why B 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 also order suspension or revocation. These figures differ from the C.R.S. § 10-3-1108 penalties for the underlying violation, so the two statutes must never be blended.
Why the other options are wrong
- A) $3,000 per act is the C.R.S. § 10-3-1108 penalty for an ordinary unfair-competition violation, not for violating an existing order under C.R.S. § 10-3-1109.
- C) The $30,000-per-act figure applies only to a knowing insurer under C.R.S. § 10-3-1108 and does not describe the C.R.S. § 10-3-1109 violation penalty.
- D) The amounts are reversed: C.R.S. § 10-3-1109 sets $10,000 per act for an insurer and $500 per act for an individual.
Memory hook
Break the order, pay more: $10,000 for the company, $500 for the person.