State RegulationsCO specificDifficulty 2/5
Which of the following is an unfair claim settlement practice under C.R.S. § 10-3-1104(1)(h)?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
C.R.S. § 10-3-1104(1)(h) enumerates failing to acknowledge communications about claims promptly as an unfair claim settlement practice, along with failing to adopt reasonable investigation standards, refusing to pay without reasonable investigation, making lowball offers that compel litigation, and failing to explain claim denials.
Why the other options are wrong
- B) A denial supported by a reasonable investigation is lawful claims handling, the opposite of a violation.
- C) Requesting proof of loss is a standard, permitted claims requirement in Colorado.
- D) Prompt settlement at the policy limit is proper conduct, not an unfair practice.
Memory hook
Ignore the letters, lowball the claim — the statute is watching.