State RegulationsCO specificDifficulty 1/5
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?
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Answer & full 3-part explanation (select an option above, or peek)
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.