State RegulationsCO specificDifficulty 3/5
Under C.R.S. § 10-3-1104(1)(h), the Colorado Commissioner of Insurance may find an unfair claims practice violation when:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
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.