A cease and desist order is used to

• A. Increase premiums
• B. Cancel policies automatically
• C. Suspend company licenses
• D. Forbids a stated practice listed in the order

Answer: (D)

A cease and desist order is a regulatory tool used to stop a specific improper practice that a regulator has identified. It directs the party to stop the listed conduct right away to protect consumers and maintain fair practices in the insurance field. The key is that the order targets a particular practice and forbids continuing it as described in the order; failure to comply can bring penalties.

This isn’t about raising premiums, automatically canceling policies, or directly suspending a company’s license. Those actions are separate regulatory steps, whereas a cease and desist focuses on halting the defined improper behavior listed in the order.