State RegulationsCO specificDifficulty 1/5
Under C.R.S. § 10-7-112, interest on the death benefit of a Colorado life policy begins to run on what date?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under C.R.S. § 10-7-112, interest on the death benefit runs from the date of death through 30 days after the insurer receives a complete payout request with due proof of death, at the proceeds-left-on-deposit rate. The interest clock starts at death, not when paperwork arrives.
Why the other options are wrong
- A) Receipt of the payout request ends the first interest period 30 days later; it does not start the interest clock.
- B) The policy anniversary has no bearing on the interest start date under C.R.S. § 10-7-112.
- C) Filing a lawsuit affects the interest rate after a denied claim and judgment, not the start of interest.
Memory hook
Interest starts when the insured dies, not when paperwork arrives.