A Colorado producer collects a premium payment from a client. The policy does not specify a contractual due date for remitting the funds to the insurer. Under C.R.S. § 10-2-704, by when must the producer remit the premium?

Why D is correct

C.R.S. § 10-2-704(1) treats premiums collected by a producer as funds held in a fiduciary capacity: they must be remitted on or before the contractual due date or, if the policy sets no due date, within 45 days after receipt. Returned premiums follow a separate rule and must be remitted or credited within 30 days after receipt or credit.

Why the other options are wrong

• A) 30 days is the returned-premium deadline under C.R.S. § 10-2-704(1), not the remittance deadline when no contractual due date exists.
• B) 90 days is the accounting-failure reporting trigger when no due date exists under C.R.S. § 10-2-704(1)(d), not the remittance deadline.
• C) 10 days is not a remittance deadline recognized by C.R.S. § 10-2-704; the no-due-date remittance deadline is 45 days after receipt.

Memory hook

No due date on the policy? Remit within 45 days.

Why A is correct

C.R.S. § 10-2-704(1) requires premiums held in a fiduciary capacity to be remitted on or before the contractual due date or, if none is specified, within 45 days after receipt. Returned premiums follow a separate 30-day rule: they must be remitted or credited within 30 days after receipt or credit.

Why the other options are wrong

• B) Thirty days is the deadline for returned premiums, not for remitting premiums when no contractual due date exists.
• C) Thirty-one days is an S&A grace-period figure under C.R.S. § 10-16-202, not the premium-remit deadline of C.R.S. § 10-2-704(1).
• D) Ninety days has no role in the remittance rule; absent a due date, the producer has 45 days after receipt.

Memory hook

No due date? Remit in 45; hand refunds back in 30.

Why B is correct

C.R.S. § 10-2-704(1) requires a producer to hold premiums in a fiduciary capacity and to remit them on or before the contractual due date or, if the contract sets no due date, within 45 days after receipt. Returned premiums follow a separate 30-day remittance or credit rule, so the clock in this scenario runs from the date the producer received the funds.

Why the other options are wrong

• A) 10 days after receipt is shorter than the 45-day default of C.R.S. § 10-2-704(1) and has no statutory basis here.
• C) 90 days is the outside reporting trigger for unaccounted premium when no due date exists, not the remittance deadline.
• D) The 45-day clock under C.R.S. § 10-2-704(1) runs from receipt of the premium, not from the policy's effective date.

Memory hook

No due date? 45 days and it goes to the insurer.