Which act prohibits unfair methods of competition and is punishable by a fine?

The correct choice is the Cease and Desist act, as it specifically addresses unfair methods of competition in the realm of insurance and other markets. This act empowers regulatory authorities to take action against practices that are deemed deceptive or unfair, ensuring a fair playing field for all competitors. Violations of this act can result in penalties, including fines, thus reinforcing the commitment to maintaining integrity in competition within the industry.

This act is vital for consumer protection as well, as it aims to eliminate unethical competitive practices that may harm consumers or distort market conditions. Understanding this act is essential for any insurance producer since it guides compliance with legal standards in competition.