State RegulationsCO specificDifficulty 3/5
An insured in Colorado Springs dies by suicide three years after her life policy was issued, and evidence shows the act was committed while she was insane. Under C.R.S. § 10-7-109, what must the insurer do?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
C.R.S. § 10-7-109 makes suicide after the first policy year a non-defense whether the insured was sane or insane and whether the act was voluntary or involuntary. Once the policy has passed its first year, mental state cannot reopen the defense. An insurer that denies on an insanity theory after the first year acts contrary to the Colorado statute and exposes itself to the Colorado Division of Insurance's enforcement authority.
Why the other options are wrong
- A) Insanity does not defeat the statute; the protection applies regardless of the insured's mental condition.
- C) The statute requires payment of the policy benefit after the first year; there is no premiums-only partial measure.
- D) No judicial determination of sanity is needed — mental state is irrelevant once the policy is past its first year.
Memory hook
After year one, sanity is off the table — pay the claim.