What is the purpose of a cease and desist order?

A cease and desist order is specifically intended to prohibit an insurer or insurance producer from continuing actions that violate insurance laws. Such orders are typically issued by regulatory authorities to protect consumers and enforce compliance with legal and regulatory standards. By stopping further violations, these orders serve to uphold the integrity of the insurance market and ensure that all participants adhere to the established rules.

In contrast to the other options, the primary goal of a cease and desist order is not to provide a means for insurers to appeal decisions or clarify regulatory requirements, nor is it designed to extend compliance deadlines. Each of those functions serves a different aspect of regulatory oversight but does not align with the immediate intent to halt unlawful practices.