What can happen if an insurer does not obey a cease and desist order for unfair claims settlement practices?

• A. The Commissioner may revoke or suspend the insurer's certificate of authority, limit its line of business, and refer the matter for enforcement; judicial review may be sought within 20 days.
• B. The insurer is automatically fined $1,000.
• C. The insurer's leadership is required to resign.
• D. The regulator will not take any action.

Answer: (A)

When a regulator issues a cease and desist order for unfair claims settlement practices, not obeying it triggers formal enforcement actions to protect consumers and maintain market integrity. The regulator may revoke or suspend the insurer’s certificate of authority, limit the lines of business the insurer can write, and refer the matter for further enforcement. If the insurer wants to challenge the order, judicial review can be sought within a specified period, typically 20 days. This framework ensures there are real consequences for noncompliance and provides a mechanism to review the regulator’s action. The other options aren’t correct because enforcement isn’t reduced to a fixed fine, leadership resignations aren’t automatic remedies, and regulators do take action rather than letting it slide.