State RegulationsCO specificDifficulty 2/5
A Colorado producer receives a written inquiry from the Division of Insurance that is not an Examination Request/Comment Form, and the producer fails to respond. Under Colorado Insurance Regulation 1-1-8, the consequence is:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Colorado Insurance Regulation 1-1-8 gives a licensee 20 calendar days to respond completely to any Division inquiry other than an Examination Request/Comment Form, which gets 10 calendar days. A failure to respond, or an incomplete response, triggers an immediate minimum $500 fine for each act or occurrence.
Why the other options are wrong
- A) The regulation imposes monetary fines for non-response; automatic license revocation without a hearing is not among its consequences.
- B) The minimum fine is $500 per act or occurrence regardless of the inquiry's subject matter, not $1,000 limited to claims.
- C) Division inquiries are mandatory; ignoring one is exactly what the fine provision of Colorado Insurance Regulation 1-1-8 punishes.
Memory hook
Twenty days to answer a Division inquiry, or five hundred dollars per miss.