State RegulationsCO specificDifficulty 2/5
A Colorado producer collects a premium that has no contractual due date for remitting it to the insurer, and the producer also holds returned premiums following a policy adjustment. Under C.R.S. § 10-2-704, what are the remittance deadlines?
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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) treats premiums collected by a Colorado producer as funds held in a fiduciary capacity: they must be remitted on or before the contractual due date or, if none exists, within 45 days after receipt, while returned premiums must be remitted or credited within 30 days after receipt or credit. The two clocks differ, and mixing them up is a common exam trap. Practically, the fiduciary label means the money is never the producer's to spend, and both deadlines are enforceable by the Colorado Division of Insurance.
Why the other options are wrong
- A) 30 days is the returned-premium deadline only; a collected premium with no contractual due date runs on the 45-day clock.
- C) No 90-day remittance window exists for collected premiums, and returned premiums run on the shorter 30-day deadline.
- D) Those figures match Division inquiry deadlines under Reg. 1-1-8, not premium remittance deadlines under § 10-2-704.
Memory hook
Held premiums: 45 days to pay up, 30 days to pay back.