State RegulationsCO specificDifficulty 1/5
A Colorado producer receives a returned premium from an insurer that canceled a policy mid-term. Under C.R.S. § 10-2-704, within how many days after receipt or credit must the producer remit or credit the returned premium to the insured?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
C.R.S. § 10-2-704(1) provides that returned premiums must be remitted or credited within 30 days after receipt or credit. The producer holds the money in a fiduciary capacity in the meantime, and the same section forbids commingling it with personal funds.
Why the other options are wrong
- A) 15 days is the life-policy free-look period, not the returned-premium deadline under C.R.S. § 10-2-704(1).
- B) 31 days is the grace period for premium modes other than weekly and monthly under the sickness and accident required provisions, not the returned-premium rule.
- D) 45 days is the remittance deadline for premiums collected when no contractual due date exists, not the deadline for returned premiums.
Memory hook
Returned premiums ride home in 30 days.