State RegulationsNC specificDifficulty 1/5
An insurer willfully violates a cease-and-desist order issued by the Commissioner of Insurance. Under G.S. 58-63-50, what forfeiture may be imposed?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under G.S. 58-63-50, a willful violation of a cease-and-desist order exposes the violator to forfeiture of not less than $1,000 nor more than $5,000 per violation. This tier is deliberately steeper than the general civil penalty of $100 to $1,000 under G.S. 58-2-70(d), because defying a direct order of the Commissioner is treated as more serious than an ordinary first violation.
Why the other options are wrong
- A) The $100 to $1,000 range is the general civil penalty for Chapter 58 violations, not the sanction for defying a cease-and-desist order.
- B) The $2,000 to $10,000 fine is imposed by a court on an entity for willful false financial statements under G.S. 58-2-180.
- C) The statute sets a per-violation range from $1,000 to $5,000, not a flat amount.
Memory hook
Ignore a cease-and-desist and pay a thousand to five thousand per violation.