State RegulationsCO specificDifficulty 2/5
After a hearing, the Commissioner finds that a Colorado insurer knowingly violated part 11. In addition to a monetary penalty under C.R.S. § 10-3-1108, what may the Commissioner order?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
C.R.S. § 10-3-1108(1)(b) and (c) allow the Commissioner, where knowledge of the violation is shown, to order suspension or revocation of the violator's license and to order payment of a contractual claim that the violation caused to go unpaid. The monetary remedy therefore comes with license consequences and direct relief for the unpaid claimant.
Why the other options are wrong
- B) Imprisonment is a criminal sanction imposed by courts; the Commissioner's civil remedies under C.R.S. § 10-3-1108 do not include jail time.
- C) The statute allows ordering payment of the specific contractual claim the violation caused to go unpaid, not a blanket refund of all premiums.
- D) The Commissioner may suspend or revoke a license after hearing, but cannot dissolve an insurer without the statutory proceedings.
Memory hook
Pay the claim, lose the license — the Commissioner's one-two punch under 1108.