State RegulationsMA specificDifficulty 2/5
The Massachusetts Division of Insurance discovers a person transacting insurance without a license. What enforcement tool can the Commissioner use to halt the conduct immediately while the matter proceeds?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
M.G.L. c. 176D, § 7 authorizes the Commissioner to issue a cease and desist order when a person engages in an act or practice that violates the insurance laws, including transacting without a license. The order halts the conduct immediately, and continued violation of the order exposes the person to further enforcement — penalties, and license actions where a license exists — pursued by the Massachusetts Division of Insurance.
Why the other options are wrong
- B) Revocation is impossible against a person who holds no license; the operative tool is the cease and desist order of M.G.L. c. 176D, § 7.
- C) The Commissioner need not wait for any criminal process before acting; the administrative cease and desist power is immediate.
- D) A consumer advisory neither stops the conduct nor is the Commissioner's only remedy; the cease and desist order is the direct tool.
Memory hook
Stop now, litigate later — the cease and desist order leads Massachusetts enforcement.