State RegulationsCO specificDifficulty 3/5
Which statement correctly states the trigger standard for an unfair claim settlement practice violation under C.R.S. 10-3-1104(1)(h)?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
C.R.S. 10-3-1104(1)(h) is violated by a willful unfair claim practice or by a frequency of violations indicating a general business practice. Willfulness substitutes for repetition, so even isolated but willful conduct can draw sanctions from the Colorado Commissioner of Insurance.
Why the other options are wrong
- A) No complaint-count threshold appears in the statute; the triggers are willfulness or a general business practice.
- B) The willful-violation prong means even a single instance of willful misconduct can be a violation.
- C) The unfair claim settlement practices provision applies across lines of insurance, including life coverage.
Memory hook
Willful once, or often enough - either way you're caught.