State RegulationsCO specificDifficulty 3/5
A client in Boulder returns a reinstatement premium with a conditional receipt on an individual sickness and accident policy. The insurer neither approves nor disapproves the reinstatement application. Under C.R.S. § 10-16-202, when does coverage take effect?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
C.R.S. § 10-16-202's reinstatement provision works in tiers: if the insurer accepts premium without requiring an application, coverage reinstates at once; otherwise it reinstates upon approval or, absent approval, on the 45TH DAY after the conditional receipt unless the insurer previously notified the insured of disapproval in writing. After reinstatement, accidental injury is covered immediately, and sickness is covered if it begins more than 10 DAYS after reinstatement.
Why the other options are wrong
- A) Acceptance of premium alone reinstates only when the insurer did not require an application; here an application was pending, so the statutory default applies.
- B) The statutory default date is the 45th day, not the 30th day.
- C) Written approval is one path to reinstatement, but silence does not stall coverage forever — the 45th-day default protects the insured.
Memory hook
Silent insurer? The 45th day speaks for you.