State RegulationsCO specificDifficulty 1/5
A Colorado producer collects premium payments from insureds. The insurance contract specifies no premium due date. Under C.R.S. § 10-2-704, within how many days after receipt must the producer remit the premiums?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
C.R.S. § 10-2-704(1) requires a producer who receives premiums to hold them in a fiduciary capacity and remit them on or before the contractual due date or, if there is no due date, within 45 days after receipt. Missing the deadline exposes the producer to discipline by the Colorado Division of Insurance for breach of fiduciary duty.
Why the other options are wrong
- A) 30 days is the deadline for returned premiums, a different rule under C.R.S. § 10-2-704(1), not the remittance deadline when no due date exists.
- C) 90 days is the reporting trigger for unaccounted-for premium when no due date exists, not the remittance deadline.
- D) A 6-month remittance window would breach the 45-day fiduciary limit in C.R.S. § 10-2-704(1).
Memory hook
Due date or 45 days — fiduciary money can't linger.