State RegulationsCO specificDifficulty 3/5
A Colorado carrier leaves a clean claim unpaid past the 90-calendar-day deadline and resolves it on the 91st day. Under C.R.S. § 10-16-106.5, what consequences apply?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
C.R.S. § 10-16-106.5 imposes 10% annual interest on the amount ultimately allowed, running from the due date, and — when a claim is not resolved within 90 days — a penalty of 20% of the amount ultimately allowed, imposed on the 91st day. A carrier that resolves the claim on the 91st day owes both the accrued interest and the 20% penalty.
Why the other options are wrong
- B) The late-payment consequences are the statutory 10% annual interest and 20% penalty, not a flat $1,000 fine.
- C) Interest runs at 10% annually; the 20% figure is the penalty for claims unresolved at 90 days, not the interest rate.
- D) Late payment carries statutory consequences even if the claim is eventually paid.
Memory hook
10% interest always; 20% penalty lands on day 91.