State RegulationsCO specificDifficulty 3/5
An applicant in Denver was canceled by her previous insurer for nonpayment of premium. A Colorado insurer refuses even to consider her application solely because of that prior cancellation. Under C.R.S. § 10-3-1104(1)(f), the refusal is:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
C.R.S. § 10-3-1104(1)(f) makes it unfair discrimination to refuse a person solely because another insurer refused, canceled, or non-renewed the person's coverage. The prior cancellation may be weighed with other factors, but it cannot be the sole basis for refusal under Colorado law.
Why the other options are wrong
- A) A refusal resting solely on a prior insurer's action is not legitimate underwriting; the statute names it as unfair discrimination.
- B) Nothing in Colorado law requires such a refusal; the statute forbids making it the only reason.
- C) Documentation does not legalize a refusal that rests solely on a prior cancellation.
Memory hook
Another carrier said no? You still have to look at her.