What is the main purpose of a cease and desist order issued by an insurance Commissioner?

The main purpose of a cease and desist order issued by an insurance Commissioner is to prohibit unlawful practices in the insurance industry. This order is a regulatory tool that allows the Commissioner to take immediate action against insurance companies, agents, or brokers engaging in practices that violate state insurance laws or regulations. By issuing this order, the Commissioner seeks to protect consumers and ensure that fair and lawful conduct is maintained within the insurance sector. It helps to address issues such as fraud, misrepresentation, or any actions deemed harmful to the public, thereby promoting a safer insurance marketplace.

In contrast, the other options do not align with the primary function of a cease and desist order. For instance, suspending an insurance policy, granting licenses, or enforcing contract terms are specific actions that do not encompass the regulatory intent and scope of a cease and desist order. Instead, they focus on different aspects of insurance management and consumer protection.