A Colorado insurer cancels a policy mid-term, creating an unearned premium. Under C.R.S. § 10-2-704(2), within how long after the effective cancellation must the insurer remit the unearned premium?

Why A is correct

Under C.R.S. § 10-2-704(2), the insurer must remit unearned premiums within 45 days after the effective date of cancellation or termination, or after entitlement to the unearned premium is otherwise established. Note that this is the INSURER's duty, distinct from the producer's 30-day duty to remit returned premiums received under § 10-2-704(1). Keeping the two roles straight matters in a Colorado agency, because the producer who receives the returned premium must pass it along or credit it within 30 days even though the insurer has 45 days from cancellation.

Why the other options are wrong

• B) 20 days matches Division inquiry response deadlines under Reg. 1-1-8, not the unearned-premium remittance period.
• C) 30 days is the producer's deadline for remitting returned premiums actually received, not the insurer's 45-day deadline from cancellation.
• D) 10 days is not a remittance deadline anywhere in C.R.S. § 10-2-704.

Memory hook

Insurer pays back unearned premium in 45; the producer who got it forwards it in 30.