The Commissioner of Insurance issues a cease-and-desist order against an insurer after a hearing, and the insurer willfully continues the prohibited practice. For each violation of the order, the insurer is subject to a forfeiture of:

Why A is correct

Under G.S. 58-63-50, willful violation of a cease-and-desist order subjects the violator to a forfeiture of not less than $1,000 nor more than $5,000 per violation. The $100 to $1,000 range is the Commissioner's general civil penalty for ordinary violations of Chapter 58 under G.S. 58-2-70, and the $2,000 to $10,000 fine is what a court may impose on an entity for willful false statements under G.S. 58-2-180. Defying an active cease-and-desist order is its own, more serious penalty tier and must never be blended with the others.

Why the other options are wrong

• B: $100 to $1,000 per violation is the general civil penalty under G.S. 58-2-70(d) for violations of Chapter 58 — it does not apply to defying a cease-and-desist order.
• C: $2,000 to $10,000 is the court fine on an entity for willful false statements in required filings under G.S. 58-2-180, a different trigger entirely.
• D: The statute sets a range of not less than $1,000 nor more than $5,000 per violation under G.S. 58-63-50; there is no flat-fee forfeiture.

Memory hook

Defy a cease-and-desist order, pay big: $1,000-$5,000 per violation.