State RegulationsNC specificDifficulty 2/5
The Commissioner of Insurance issues a cease-and-desist order to a licensee, who then willfully violates it. Under G.S. 58-63-50, the forfeiture for this conduct is:
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 B is correct
Under G.S. 58-63-50, a 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. This tier is distinct from the Commissioner's general civil penalty under G.S. 58-2-70(d), and the tenfold range reflects the added seriousness of defying an order the Commissioner has already issued.
Why the other options are wrong
- A) $100 to $1,000 per violation is the general civil penalty under G.S. 58-2-70(d), which applies to ordinary Chapter 58 violations rather than defied orders.
- C) $2,000 to $10,000 is the court fine on an entity for a willful false statement under G.S. 58-2-180.
- D) The statute prescribes a monetary forfeiture in a fixed range under G.S. 58-63-50; forfeiture of commissions is not the sanction.
Memory hook
Defying a C&D order costs $1k to $5k per violation - ten times the general tier.