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