State RegulationsCO specificDifficulty 3/5
After a hearing, the Colorado Commissioner finds that an insurer knowingly engaged in deceptive practices under part 11 and that the conduct caused a policyholder's contractual claim to go unpaid. Besides monetary penalties under C.R.S. § 10-3-1108, the Commissioner may also:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
C.R.S. § 10-3-1108(1)(b),(c) authorizes the Commissioner, where knowledge of the violation is shown, to order suspension or revocation and to order payment of the contractual claim that the violation caused to go unpaid. This pairs the monetary penalties of subsection (1)(a) with direct licensing action and restitution-like relief for the harmed policyholder.
Why the other options are wrong
- A) A criminal referral is not the exclusive remedy; C.R.S. § 10-3-1108(1)(b),(c) gives the Commissioner civil licensing and payment-order authority.
- B) The Commissioner's remedial power under C.R.S. § 10-3-1108 goes beyond a fine to include license action and payment of the unpaid claim.
- C) Subsection (1)(c) of C.R.S. § 10-3-1108 expressly lets the Commissioner order payment of the contractual claim, so the unpaid claim is squarely within the order.
Memory hook
Know it, fix it: license action plus pay the claim.