Indiana State Life and Health Insurance Practice Exam

In Indiana, what is the maximum fine that the Commissioner can impose per violation of a cease and desist order?

1. $10,000

2. $15,000

3. $20,000

4. $25,000

The correct answer is: $25,000

The maximum fine that the Commissioner can impose per violation of a cease and desist order in Indiana is set at $25,000. This is significant as it underscores the authority granted to the Commissioner to enforce compliance with insurance laws and regulations. Cease and desist orders are issued to prevent individuals or entities from continuing actions that are deemed illegal or harmful within the insurance industry. The high penalty amount serves as a deterrent against non-compliance and ensures that licensed insurance professionals adhere to the laws governing their practices. This level of financial consequence emphasizes the importance of regulatory compliance in safeguarding the interests of policyholders and maintaining the integrity of the insurance market.