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Glossary of Enforcement Terms

Cease and Desist:  Licensee agrees to discontinue the alleged violation(s) of the insurance law(s) 

Consent Order:  A formal Order issued by the Insurance Department with the consent of the insurance producer, company or other person, imposing sanctions for violations of insurance laws 

Enforcement Action:  An action that is the result of an investigation or examination that reveals violations of Pennsylvania insurance laws 

Fine:  Sum of money imposed as a penalty for violations of insurance laws 

Fraud Examination Unit:  A unit by a grant from the Pennsylvania Insurance Fraud Protection Authority; unit works directly with insurance entities, consumers and law enforcement agencies to reduce fraud related losses as a factor in insurance rates 

Market Conduct Exam: A comprehensive examination of an insurance company's records, files and practices in order to determine compliance with Pennsylvania statutes and regulations; the exam results in a report containing the Department's findings, and which may result in an Order providing for corrective action and a monetary penalty for violations 

Market Conduct Review: A review conducted by the Department on a company specific or industry-wide  or company-specific basis, focusing on a specific regulatory issue to determine whether or not companies are in compliance with the applicable law or regulation on that issue, and which may result in regulatory action 

Market Surveillance Division:  Division which conducts market analysis to assess how well individual companies and the insurance market as a whole are meeting consumers needs 

Order and Adjudication:  A final order and decision issued by the Insurance Commissioner after a hearing; a formal opinion which decides the legal and factual issues of a case and, if appropriate, imposes penalties for violations of insurance laws 

Order to Show Cause:  An administrative complaint filed by the Pennsylvania Insurance Department in the Administrative Hearings Office; alleging that an insurance producer, company, or other person, has violated Pennsylvania insurance laws and seeking sanctions for such 

Revocation:  Removal of an insurance license 

Settlement Agreement:  An agreement reached by mutual consent of both parties after litigation has been initiated; a method of case closure