State RegulationsNC specificDifficulty 1/5
An insurer willfully violates a cease-and-desist order that was issued by the North Carolina Commissioner of Insurance. What forfeiture may be imposed for this violation?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under G.S. 58-63-50, willful violation of a cease-and-desist order exposes the violator to a forfeiture of not less than $1,000 nor more than $5,000 per violation. This tier is separate from the general civil penalty range that applies to ordinary violations of Chapter 58.
Why the other options are wrong
- A) The $100-to-$1,000 range is the general civil penalty for violations of Chapter 58, not the sanction for defying a cease-and-desist order.
- B) The $2,000-to-$10,000 fine is a court-imposed fine on an entity for willful false statements, a different provision entirely.
- C) No $500-to-$5,000 range exists in the North Carolina insurance statutes.
Memory hook
Defy the order, pay 1,000 to 5,000.