State RegulationsCO specificDifficulty 3/5
A policy delivered in Colorado Springs requires monthly premium payments. The insurer fails to mail any notice before the policy lapses for nonpayment. Under C.R.S. § 10-7-105.5, what is the result?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
C.R.S. § 10-7-105.5 expressly does not apply to policies whose premiums are paid monthly or more frequently. Because this policy is paid monthly, the pre-lapse mailing requirement never attaches, and the absence of a notice does not invalidate the lapse — the statute protects policyowners on slower premium modes, where a missed payment and resulting lapse are easier to overlook.
Why the other options are wrong
- A) The mailed-notice duty is limited to premium modes less frequent than monthly, so it does not reach every policy.
- B) Nothing in C.R.S. § 10-7-105.5 forces free retroactive reinstatement; the statute governs notice, not reinstatement terms.
- C) The statute contains no waiver-signature mechanism; the premium mode, not a waiver, determines whether the notice rule applies.
Memory hook
Monthly money skips the mail.