State RegulationsOH specificDifficulty 1/5
An Ohio insurer willfully violates a cease-and-desist order that is in effect. In a court action under ORC 3901.22(F)(2), what civil penalty may be imposed per violation?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
ORC 3901.22(F)(2) authorizes a court civil penalty of up to $10,000 per violation of a cease-and-desist order. Keep the three Ohio penalty regimes distinct: the superintendent's administrative penalty is $25,000 per violation under ORC 3905.14(E)(1), the court's unfair-practice penalty is $3,500 per violation capped at $35,000 per six months under ORC 3901.22(F)(1), and violating an existing order costs $10,000 per violation.
Why the other options are wrong
- A) $3,500 is the per-violation court penalty for unfair practices under ORC 3901.22(F)(1), not for violating a cease-and-desist order.
- C) $25,000 is the superintendent's administrative penalty under ORC 3905.14(E)(1), not the court's sanction for defying an order.
- D) $35,000 is the six-month aggregate cap under ORC 3901.22(F)(1); it does not apply to order violations.
Memory hook
Disobey the order — the court charges $10,000.