State RegulationsCO specificDifficulty 1/5
Which of the following is prohibited as an illegal rebate under C.R.S. § 10-3-1104(1)(g)?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
C.R.S. § 10-3-1104(1)(g) prohibits rebating any part of the premium, or giving any valuable consideration not specified in the contract, as an inducement to purchase insurance. Returning premium to close a sale rewards the applicant rather than the risk class and is the classic rebate violation the Colorado Division of Insurance enforces.
Why the other options are wrong
- A) Dividends from nonparticipating surplus are an express statutory exception to the rebate ban.
- B) Retrospective group-rate adjustments are another enumerated exception permitted by the statute.
- C) Charging the filed premium is the lawful baseline; deviating from it by giving money back is the violation.
Memory hook
Premium stays filed — surplus dividends stay legal.