State RegulationsCO specificDifficulty 2/5
Under C.R.S. § 10-7-105.5, how may a Colorado insurer deliver a lapse-for-nonpayment notice on a quarterly-pay life policy, and what serves as proof of delivery?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
C.R.S. § 10-7-105.5 requires the reason for lapse to be mailed first-class, or transmitted by email if the policyowner has consented, at least 25 days before the effective lapse date. An affidavit of mailing or of transmission is proof of the notice, which protects both the insurer's right to lapse and the policyowner's final chance to pay before coverage ends.
Why the other options are wrong
- B) Certified mail is not required; the statute specifies first-class mail, and proof is by affidavit rather than any court certificate.
- C) Email works only with the policyowner's consent, and the recognized proof is an affidavit of transmission, not a producer's confirmation.
- D) The statute does not require personal delivery by the producer; first-class mail or consented email with an affidavit satisfies the law.
Memory hook
First-class or consented email — then swear to it by affidavit.