What actions might result from violating a cease and desist order?

Violating a cease and desist order can lead to substantial penalties, which is why the answer involving the payment of a civil penalty is accurate. A cease and desist order is typically issued to prohibit an individual or entity from continuing activities deemed illegal or harmful, particularly in the context of insurance practices. If this order is ignored, regulatory bodies have the authority to enforce compliance through financial penalties, which serve both as punishment and as a deterrent against future violations.

This enforcement action aligns with the regulatory framework that upholds the integrity of the insurance market and protects consumers. Civil penalties may vary in severity but generally reflect the nature and impact of the violation. By imposing fines, regulators aim to encourage adherence to laws and regulations essential for maintaining fair practices within the industry.