A Colorado Springs insurer intends to lapse an individual life policy for nonpayment; the premiums are paid quarterly. Under C.R.S. § 10-7-105.5, how far before the effective lapse date must the reason for lapse be mailed to the policyholder?

Why A is correct

C.R.S. § 10-7-105.5 makes a lapse for nonpayment effective only if the reason for lapse is mailed first-class — or emailed with the owner's consent — at least 25 days before the effective lapse date, with an affidavit of mailing serving as proof. Quarterly premiums are within the statute's scope.

Why the other options are wrong

• B) Forty-five days exceeds the statutory requirement; the notice period is 25 days.
• C) A 24-hour notice does not satisfy C.R.S. § 10-7-105.5.
• D) Ten days is shorter than the required 25-day notice period.

Memory hook

Quarterly lapse? Mail the reason 25 days out.

Why B is correct

C.R.S. § 10-7-105.5 requires the reason for lapse to be mailed first-class at least 25 days before the effective lapse date, and an affidavit of mailing serves as proof. The rule applies to policies whose premiums are paid less frequently than monthly, so a quarterly-pay policy is covered and the 25-day notice controls whether the lapse is effective.

Why the other options are wrong

• A) 45 days is longer than the statutory minimum; the effective period under C.R.S. § 10-7-105.5 is at least 25 days before the lapse takes effect.
• C) 30 days is not the life lapse-notice period; that figure belongs to other Colorado notice rules, not the lapse notice of C.R.S. § 10-7-105.5.
• D) 10 days is shorter than the required minimum; a lapse without a notice mailed at least 25 days ahead is not effective for a quarterly-pay policy.

Memory hook

Quarterly or slower? Give 25 days' notice.