State RegulationsGA specificDifficulty 2/5
A Savannah insurer repeatedly uses misleading advertisements. After notice and a hearing, the Commissioner issues a cease and desist order. Which additional consequence may the Commissioner impose?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under O.C.G.A. § 33-6-9, the cease and desist remedy is coupled with the Commissioner's power to suspend or revoke the violator's license or other authority. The order stops the unlawful conduct, and the suspension or revocation power removes the violator's ability to keep operating in Georgia — a two-step escalation for insurers that ignore the rules.
Why the other options are wrong
- A) Imprisonment is not a remedy available under the cease and desist statute.
- B) A blanket premium refund is not part of the cease-and-desist remedy.
- C) Policyholders are not transferred to any state-run pool under this statute.
Memory hook
Cease and desist — or lose the authority to do business.