The Commissioner issues a cease-and-desist order against an insurer, and the insurer willfully continues the prohibited practice. What forfeiture does each violation of the order carry?

Why A is correct

Under G.S. 58-63-50, a person who willfully violates a cease-and-desist order issued by the Commissioner forfeits not less than $1,000 nor more than $5,000 for each violation. This range is specific to defying a cease-and-desist order and is separate from the general civil penalty scheme the Commissioner applies to ordinary Code violations.

Why the other options are wrong

• B) $100 to $1,000 per violation is the general civil penalty range under G.S. 58-2-70(d), which applies to ordinary Code violations, not to willful defiance of a cease-and-desist order under G.S. 58-63-50.
• C) $2,000 to $10,000 is the fine a court imposes on an entity for willful false statements under G.S. 58-2-180, not the cease-and-desist forfeiture under G.S. 58-63-50.
• D) North Carolina law imposes no flat $50,000 forfeiture; G.S. 58-63-50 sets the $1,000 to $5,000 per-violation range.

Memory hook

Defy a C&D: one to five grand per violation.