State RegulationsOH specificDifficulty 2/5
An Ohio producer repeatedly misrepresents policy benefits during sales presentations. The superintendent, after notice and a hearing, issues a cease-and-desist order. What is the immediate legal effect of the order on the producer?
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
ORC 3901.221 and ORC 3901.22(D) make the cease-and-desist order an immediate command to stop the challenged practices. The order does not itself revoke the license or impose jail; its teeth are the consequences of disobedience — court civil penalties of up to $10,000 per violation under ORC 3901.22(F)(2) plus further administrative remedies.
Why the other options are wrong
- A) Revocation is a possible administrative remedy under ORC 3901.22(D) but is not automatic or permanent upon issuance of the order.
- B) A cease-and-desist order is a civil administrative tool; no criminal sentence is imposed by its issuance.
- C) The order commands cessation of the practices; any restitution is crafted through the ORC 3901.22(D) remedies, not a blanket refund of all premiums ever collected.
Memory hook
The order stops the conduct first; the penalties wait for disobedience.