Under C.R.S. § 10-3-1104(1)(h), an unfair claims practice violation exists when:

Why C is correct

C.R.S. § 10-3-1104(1)(h) reaches a willful violation of the enumerated claim acts, or a frequency of violations that indicates a general business practice. Isolated technical missteps without willfulness or a pattern do not constitute the violation, as the Colorado Commissioner of Insurance applies the standard.

Why the other options are wrong

• A) A single technical error, absent willfulness or a pattern, does not meet the statutory standard.
• B) A claimant's litigation allegation does not itself establish the statutory violation; willfulness or a general business practice does.
• D) Denials supported by investigation and policy grounds are lawful; only willful or patterned misconduct is covered.

Memory hook

Willful once or wicked often — either way it counts.

Why D is correct

Under C.R.S. § 10-3-1104(1)(h), a violation arises from a willful act or from a frequency of violations that indicates a general business practice. The Colorado Commissioner of Insurance may sanction an insurer whose claims handling shows such a pattern, even without proving intent on every individual claim.

Why the other options are wrong

• A) An isolated internal error does not by itself establish willfulness or a general business practice.
• B) A single complaint is a trigger for inquiry, not the statutory standard for a violation.
• C) Using outside adjusters is lawful; the statute targets how claims are handled, not who handles them.

Memory hook

One slip is a mistake; a pattern is a practice.