State RegulationsCO specificDifficulty 1/5
A producer in Boulder collects a premium on a policy whose contract contains no remittance due date. Holding the funds in a fiduciary capacity under C.R.S. § 10-2-704(1), the producer must remit the premium to the insurer:
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Answer & full 3-part explanation (select an option above, or peek)
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.