A Colorado insurer is found, after a hearing, to have known or reasonably should have known that it was violating the unfair-competition provisions of part 11. Under C.R.S. § 10-3-1108(1)(a), the maximum monetary penalty is:

Why C is correct

C.R.S. § 10-3-1108(1)(a) imposes the enhanced penalty when the violator is an insurer that knew, or reasonably should have known, it was violating part 11: not more than $30,000 per act, capped at $750,000 annually. The knowledge element is what escalates the penalty far above the ordinary $3,000 per act level.

Why the other options are wrong

• A) The $3,000 per act / $30,000 aggregate penalty is the baseline for violations without insurer knowledge, not the knowing-insurer penalty.
• B) $10,000 per act is the C.R.S. § 10-3-1109 figure for violating an existing cease and desist order, and it carries no such annual-cap framing here.
• D) $50,000 per act and a $500,000 annual cap are not figures found in C.R.S. § 10-3-1108; the knowing-insurer cap is $750,000 annually.

Memory hook

Knowing insurer: thirty per act, seven-fifty a year — knowledge multiplies the price.