State RegulationsPA specificDifficulty 1/5
In Pennsylvania insurance regulation, what is a cease-and-desist order?
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
A cease-and-desist order is the Pennsylvania Insurance Department's command to halt conduct that violates the insurance laws, issued under 40 P.S. § 310.91 and 40 P.S. § 1171.9. It is an enforcement instrument aimed at ongoing or threatened violations — not an administrative courtesy, a consumer publication, or a market-entry approval. Defying the order triggers the penalty machinery that follows it.
Why the other options are wrong
- A) Renewal notices are administrative mailings; they do not command anyone to stop violating the law.
- B) Consumer brochures inform the public; the cease-and-desist order compels a violator.
- C) Market-entry approvals authorize business; a cease-and-desist order restrains it.
Memory hook
Cease and desist = the department's stop sign, nailed to the violation.