State RegulationsCO specificDifficulty 2/5
A licensee ignores a routine inquiry from the Colorado Division of Insurance that was not submitted on an Examination Request/Comment Form, and never requests an extension. Under Reg. 1-1-8, what is the consequence of the failure to respond?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Colorado Insurance Regulation 1-1-8, a licensee has 20 calendar days to respond completely to a Division inquiry other than an Examination Request/Comment Form, and a failure or incomplete response results in an immediate minimum $500 fine per act or occurrence. Extensions require a written request granted at Division discretion; silence triggers the fine rather than a warning.
Why the other options are wrong
- A) Reg. 1-1-8 imposes a monetary penalty for nonresponse; automatic revocation is not the prescribed consequence.
- B) The regulation provides no warning-first mechanism; the fine is immediate upon failure or incomplete response.
- D) There is no 60-day cure period in Reg. 1-1-8; the monetary fine attaches right away.
Memory hook
Ignore the Division, pay 500 — minimum, per occurrence.