PassSprint

One rule, 2 ways the exam asks it. Same knowledge point, different phrasing — work through all of them, because the exam rarely reuses the wording.

State RegulationsNC specificDifficulty 3/5

After a hearing, the Commissioner issues a cease-and-desist order to a North Carolina producer, who willfully continues the prohibited practice. What forfeiture may be imposed for each violation of the 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 B is correct

Under G.S. 58-63-50, a person who willfully violates a cease-and-desist order is subject to a forfeiture of not less than $1,000 nor more than $5,000 per violation. This tier is deliberately harsher than the ordinary civil penalty range because defying a direct Commissioner order is treated as aggravated misconduct.

Why the other options are wrong

  • A) The $100 to $1,000 range is the general civil penalty for ordinary code violations under G.S. 58-2-70(d), not the penalty for defying an order.
  • C) The $2,000 to $10,000 fine is a court-imposed fine on an entity for willful false financial statements, a different provision entirely.
  • D) Monetary forfeiture is expressly available for violating a cease-and-desist order; criminal prosecution is not the exclusive remedy.

Memory hook

Defy the order, pay the big tier: one to five grand per violation.

State RegulationsNC specificDifficulty 1/5

The Commissioner of Insurance issues a cease-and-desist order against an insurer after a hearing, and the insurer willfully continues the prohibited practice. For each violation of the order, the insurer is subject to a forfeiture of:

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 A is correct

Under G.S. 58-63-50, 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. The $100 to $1,000 range is the Commissioner's general civil penalty for ordinary violations of Chapter 58 under G.S. 58-2-70, and the $2,000 to $10,000 fine is what a court may impose on an entity for willful false statements under G.S. 58-2-180. Defying an active cease-and-desist order is its own, more serious penalty tier and must never be blended with the others.

Why the other options are wrong

  • B: $100 to $1,000 per violation is the general civil penalty under G.S. 58-2-70(d) for violations of Chapter 58 — it does not apply to defying a cease-and-desist order.
  • C: $2,000 to $10,000 is the court fine on an entity for willful false statements in required filings under G.S. 58-2-180, a different trigger entirely.
  • D: The statute sets a range of not less than $1,000 nor more than $5,000 per violation under G.S. 58-63-50; there is no flat-fee forfeiture.

Memory hook

Defy a cease-and-desist order, pay big: $1,000-$5,000 per violation.

Keep studying

Related Practice Questions

Your study shortcut

Install PassSprint

Add PassSprint to your Home Screen and open it like an app whenever you're ready to practice.

  1. Open this website in Chrome.
  2. Tap the three-dot menu (⋮) at the top right.
  3. Choose Install app or Add to Home screen → Install, then confirm.

Once added, tap the PassSprint icon on your Home Screen to get started.

Can't find the install option?

If you opened this link inside another app, copy it and open it in Chrome. Menu names can vary by browser.