State RegulationsCO specificDifficulty 2/5
A Colorado consumer files a written complaint with the Division of Insurance alleging that a producer misrepresented the benefits of an annuity contract. Under C.R.S. § 10-1-108, what may the Commissioner of Insurance do in response?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
C.R.S. § 10-1-108 authorizes the Commissioner of Insurance to receive complaints about improper insurance practices and to investigate them, which is the starting point for Division enforcement in Colorado. The investigation may lead to a hearing and formal action, but the consumer complaint itself does not decide coverage or guilt. A producer facing such a complaint should respond fully and promptly, because the Commissioner's investigative power under this section feeds directly into the penalty provisions administered by the Colorado Division of Insurance.
Why the other options are wrong
- A) The Commissioner enforces the insurance code and may facilitate resolution, but a complaint does not empower the Division to simply bind an insurer to pay a claim.
- B) Referral to county court is not the statutory mechanism; enforcement begins with the Division's own investigative authority.
- D) License discipline requires notice and an opportunity for a hearing; summary suspension without process is not what this section provides.
Memory hook
Complaint lands, Commissioner investigates — no instant claim rulings, no instant suspensions.