State RegulationsCO specificDifficulty 2/5
A policyholder in Colorado Springs files a written complaint with the Colorado Division of Insurance alleging that her insurer is unreasonably delaying payment of her claim. What may the Commissioner of Insurance do in response to the complaint?
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 C is correct
C.R.S. § 10-1-108 gives the Colorado Commissioner of Insurance authority to receive and act on complaints, and the Commissioner's general investigative and examination powers under C.R.S. § 10-1-201 support an inquiry into the insurer's claim-handling conduct. The Division can examine records and pursue disciplinary action if violations are found; the policyholder need not sue first.
Why the other options are wrong
- A) The Commissioner's complaint authority under C.R.S. § 10-1-108 is not conditioned on the policyholder first filing a lawsuit against the insurer.
- B) License suspension is a disciplinary remedy that follows an investigation and due process, not an automatic first response to a complaint.
- D) Insurance in Colorado is regulated by the Colorado Division of Insurance under Title 10 of the Colorado Revised Statutes, not by the federal government.
Memory hook
Complaint in, investigation out: the Commissioner looks into it, no lawsuit needed.