State RegulationsMI specificDifficulty 2/5
A producer knowingly violates a cease and desist order that was issued under the licensing chapter of the Michigan Insurance Code. What is the maximum fine per violation?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
M.C.L. 500.1244(3) provides that knowingly violating a cease and desist order under the licensing chapter carries a fine of up to $10,000 per violation, with an aggregate cap of $50,000, or suspension or revocation of the license. The $20,000-per-violation figure belongs to cease and desist orders issued for unfair trade practices under M.C.L. 500.2040, not to the licensing chapter.
Why the other options are wrong
- B) $20,000 is the trade-practices figure under M.C.L. 500.2040(1)(a), not the licensing-chapter figure.
- C) $25,000 is the aggregate cap for ordinary licensing fines under M.C.L. 500.1244(1)(a), not the per-violation cease and desist fine.
- D) $50,000 is the aggregate cap for knowing cease and desist violations under M.C.L. 500.1244(3), not the per-violation maximum.
Memory hook
Licensing chapter C&D violation: $10,000 a hit, $50,000 the cap.