What is a "cease and desist" order in Connecticut insurance law?

A "cease and desist" order in Connecticut insurance law serves a critical function in maintaining the integrity of the insurance market. This order is issued by the state insurance commissioner or regulatory authority to stop individuals or organizations from engaging in practices that are deemed illegal or unethical in the insurance industry. The primary goal of such an order is to protect consumers from fraud, misrepresentation, and other harmful practices that could compromise their financial security or fair access to insurance products.

When a cease and desist order is enforced, it mandates that the affected party immediately halt the specified activities. This might include unauthorized insurance sales, misleading advertising, or any actions violating state insurance regulations. The enforcement of such orders reflects the regulatory body’s commitment to ensuring compliance with laws that govern insurance practices, ultimately fostering a trustworthy environment for consumers.

The other choices, while related to the workings of insurance, do not accurately define the purpose or function of a cease and desist order, thus highlighting why the selected answer is the most accurate representation of this concept within Connecticut insurance law.