State RegulationsCO specificDifficulty 3/5
After a hearing reveals that a Colorado producer knowingly violated part 11, the Commissioner of Insurance considers additional remedies beyond the monetary penalty. Under C.R.S. § 10-3-1108(1)(b) and (1)(c), what else may the Commissioner order?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
C.R.S. § 10-3-1108(1)(b) and (1)(c) allow the Colorado Commissioner of Insurance, where knowledge is shown, to order suspension or revocation of the violator's license and to order payment of the contractual claim that the violation caused to go unpaid. These remedies sit alongside the monetary penalties of subsection (1)(a) and directly protect the harmed policyholder.
Why the other options are wrong
- A) Criminal imprisonment is not among the civil remedies the Commissioner may order under C.R.S. § 10-3-1108.
- B) The statute authorizes payment of the specific contractual claim left unpaid, not a sweeping forfeiture of 5 years of commissions.
- D) No restitution-bond requirement appears in C.R.S. § 10-3-1108; the order runs to license status and payment of the unpaid claim.
Memory hook
Know it and owe it: license on the line, the claim gets paid.