State RegulationsCO specificDifficulty 2/5
An insurer handling claims in Colorado routinely refuses to pay claims without conducting any investigation and ignores policyholder communications. Under C.R.S. 10-3-1104(1)(h), this conduct is best described as:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
C.R.S. 10-3-1104(1)(h) enumerates unfair claim settlement practices, including failing to acknowledge communications with reasonable promptness, failing to maintain reasonable standards for investigation, and refusing to pay claims without conducting a reasonable investigation. The insurer's pattern fits the enumeration directly.
Why the other options are wrong
- A) Defamation concerns false statements about financial condition, not claim-handling conduct.
- C) Refusing to investigate before denying is an enumerated unfair practice, not a lawful cost-control tool.
- D) Controlled business is a licensing-volume concept with no connection to claims handling.
Memory hook
No look, no pay - that's an unfair claim practice.