What penalty does a broker face for violating a cease and desist order?

When a broker violates a cease and desist order issued by the state, they face significant penalties meant to enforce compliance and uphold regulatory standards in the insurance industry. The correct answer reflects the seriousness with which regulatory bodies treat such violations. A penalty of $10,000 serves as a deterrent, emphasizing the importance of following lawful directives to maintain ethical practices and protect consumers.

This amount indicates that the state recognizes the potential harm that can arise from failing to comply with a cease and desist order, thereby necessitating a robust financial consequence for brokers who do not adhere to these enforceable guidelines. Thus, the penalty acts not only as punishment but also as a means of safeguarding the market and ensuring that brokers operate within the legal framework established for their profession.