State RegulationsCO specificDifficulty 1/5
A producer collects premiums from clients and holds them in a fiduciary capacity. One policy has no separately stated remittance due date. Under C.R.S. § 10-2-704(1), within how many days after receipt must the producer remit that premium?
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Answer & full 3-part explanation (select an option above, or peek)
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.