A cease and desist order is?

A cease and desist order is a legal directive issued by an authority, in this case, the Insurance Commissioner, when there is evidence that an unfair trade practice has occurred. This action is taken to protect consumers and ensure fair practices within the insurance industry. The order commands the individual or entity to stop the specified activities that are considered harmful or deceptive.

This order plays a crucial role in maintaining the integrity of the insurance market by preventing unethical behavior, such as misleading advertising or discriminatory practices. It serves as a remedy for protecting consumers from practices that could negatively impact their insurance rights or benefits.

In contrast, the other options describe situations that do not involve the regulatory authority of the Insurance Commissioner or the legal enforcement of industry standards. For example, insurance companies issuing orders related to policyholder defaults, claims, or fraud are internal matters and do not involve a governmental directive to cease and desist from an unfair practice. Such distinctions highlight the specific function of a cease and desist order as a regulatory tool rather than an internal insurance company action.