State RegulationsCO specificDifficulty 3/5
A Colorado producer discovers that premium she collected has been unaccounted for more than 45 days after the contractual due date. Under C.R.S. § 10-2-704, what must she do?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
C.R.S. § 10-2-704(1)(d) requires a licensee to report promptly in writing to the Colorado Commissioner of Insurance when collected premium is unaccounted for more than 45 days after the contractual due date — or, when no due date exists, more than 90 days after receipt. The report goes to the Division, and covering the shortfall personally does not substitute for it.
Why the other options are wrong
- B) The 90-day measure applies only when there is no contractual due date; with a due date, the reporting trigger is 45 days after that date.
- C) Replacing the money from personal funds does not satisfy C.R.S. § 10-2-704(1)(d); the written report to the Commissioner is still required.
- D) C.R.S. § 10-2-704(1)(d) directs the report to the Commissioner of Insurance, not to the affected policyholders.
Memory hook
Premium missing 45 days past due? Write to the Commissioner.