What does a cease and desist order require?

A cease and desist order is a legal directive issued typically by a governmental agency or court that requires an individual or organization to stop a specific practice that is deemed to be illegal or harmful. This order is most commonly associated with regulatory actions within industries, including insurance, where a company might be engaging in business practices that violate laws or regulations.

The purpose of a cease and desist order is to halt activities that could cause harm to consumers, violate regulations, or otherwise contravene established legal standards. When an entity receives this type of order, it is legally obligated to cease the specified actions immediately. This mechanism is crucial for enforcing compliance and protecting the public in matters related to business operations and licensing.

In contrast, starting a new business, amending insurance policies, or filing complaints against clients do not represent the objective of such an order. These activities may be part of other regulatory processes or business decisions but are not directly related to the purpose of a cease and desist order. Hence, the requirement to stop a specific practice aligns perfectly with the definition and intent of a cease and desist order.