State RegulationsAZ specificDifficulty 3/5
A producer ignores a cease and desist order issued by the Director and continues the prohibited conduct for weeks. What is the consequence under Arizona insurance law?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
A cease and desist order issued under A.R.S. 20-292 is a binding administrative command, not advice. A producer who violates it faces escalated enforcement by the Director, including license discipline under A.R.S. 20-295 and the civil penalties under A.R.S. 20-295(F) that attach to violations of the insurance laws. Defying the order makes the producer's position worse, not better.
Why the other options are wrong
- A) Wrong because an order under A.R.S. 20-292 is enforceable; it is not advisory and does not simply expire while the conduct continues.
- C) Wrong because the state's recourse does not depend on private suits; the Director may discipline the license and penalize the violations under A.R.S. 20-295.
- D) Wrong because violating a cease and desist order threatens the license rather than preserving it; no automatic renewal results from defiance.
Memory hook
Defy the stop sign, lose the license — cease and desist orders bite.