Colorado Life Producer License Practice Test

What is the maximum civil penalty per violation if an unauthorized entity violates the Commissioner's cease and desist order?

1. $15,000

2. $20,000

3. $25,000

4. $50,000

The correct answer is: $25,000

The maximum civil penalty per violation for an unauthorized entity that violates the Commissioner's cease and desist order is indeed set at $25,000. This figure is significant as it underscores the seriousness with which regulatory authorities view compliance failures in the insurance industry. Monetary penalties serve as both a deterrent to prevent future violations and as a means to enforce compliance with regulations that protect consumers and ensure fair market practices. In the context of insurance regulation, such hefty fines are vital in maintaining trust and integrity within the industry. They reflect the potential harm that unauthorized actions can inflict not only on consumers but on the overall market as well. Understanding the specific monetary penalties emphasizes the importance for insurance producers and entities to adhere strictly to the regulations set forth by the Commission.