State RegulationsCO specificDifficulty 3/5
At a hearing under C.R.S. § 10-3-1107, the Colorado Commissioner of Insurance determines that an insurer knowingly violated the unfair-competition statute and that the violation caused a Denver policyholder's contractual claim to go unpaid. In addition to a monetary penalty under C.R.S. § 10-3-1108, what may the Commissioner order?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
C.R.S. § 10-3-1108(1)(b) and (c) allow the Colorado Commissioner of Insurance, where knowledge of the violation is shown, to order suspension or revocation of the license and to order payment of the contractual claim that the violation caused to go unpaid. The monetary penalty under C.R.S. § 10-3-1108(1)(a) is therefore not the only remedy available after the hearing.
Why the other options are wrong
- B) The penalty is not the exclusive remedy: C.R.S. § 10-3-1108(1)(b) and (c) add license suspension or revocation and payment of the unpaid contractual claim.
- C) The Division is not described as prosecuting criminal cases against officers under C.R.S. § 10-3-1108; the ordered remedies are payment of the claim and license action.
- D) Attorney-fee awards and public reprimands are not the remedies specified in C.R.S. § 10-3-1108(1)(b) and (c).
Memory hook
Money penalty plus: pay the claim, pull the license.