State RegulationsCO specificDifficulty 1/5
A licensee ignores a Division of Insurance inquiry and never responds. Under Colorado Insurance Regulation 1-1-8, what is the consequence of failing to respond completely to a Division inquiry?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Colorado Insurance Regulation 1-1-8 provides that a failure to respond, or an incomplete response, to a Division inquiry results in an immediate minimum $500 fine per act or occurrence. The sanction is automatic because the Division's examination function depends on timely and complete licensee responses.
Why the other options are wrong
- B) Regulation 1-1-8 imposes a monetary fine for nonresponse; it does not provide for an automatic 30-day license suspension.
- C) The immediate minimum fine is $500 per act or occurrence, and it does not await a separate hearing.
- D) A warning letter is not the prescribed consequence; the regulation imposes an immediate minimum $500 fine.
Memory hook
No reply to the Division means $500, right away.