State RegulationsCO specificDifficulty 1/5
Under C.R.S. § 10-3-1104(1)(g), which of the following is permitted?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
C.R.S. § 10-3-1104(1)(g) permits dividends payable from a nonparticipating insurer's surplus, along with industrial-plan expense allowances and retrospective group-rate adjustments. Cash inducements, gifts of stock or other securities, and premium rebates to favored clients remain prohibited under the Colorado rebate statute.
Why the other options are wrong
- B) Cash inducements not specified in the policy are the core of what the rebate prohibition forbids.
- C) Offering stock or other securities as an inducement is expressly prohibited by C.R.S. § 10-3-1104(1)(g).
- D) Rebating premiums to favored clients is unlawful discriminatory treatment that the statute forbids.
Memory hook
Surplus dividends are legal; pocket cash is not.