State RegulationsCO specificDifficulty 3/5
A Colorado Medicare supplement policyholder keeps her policy for several months after delivery, then cancels it by giving at least 30 days' notice. What refund applies under C.R.S. § 10-18-107?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under C.R.S. § 10-18-107, the full-refund return right applies only within the first 30 days after delivery. After that period, a policyholder who cancels on at least 30 days' notice receives a prorated refund of prepaid premium for subsequent full months of coverage. In practice the month already running is not refunded, but the prepaid full months still come back.
Why the other options are wrong
- A) The full refund applies only within the initial 30-day return window, not to cancellations made after that period.
- B) A refund is still due after the free look — the statute provides the prorated refund mechanism rather than forfeiting all prepaid premium.
- D) The statute provides a prorated refund of prepaid premium for full remaining months, not a flat percentage of premiums paid.
Memory hook
Past 30 days: 30 days' notice still gets prepaid full months back — prorated, not punished.