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State RegulationsCO specificDifficulty 2/5

A producer in Aurora discovers that premium she collected from an insured has been unaccounted for more than 45 days after the contractual due date. Under C.R.S. § 10-2-704(1)(d), the producer must:

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Answer & full 3-part explanation (select an option above, or peek)

Why C is correct

C.R.S. § 10-2-704(1)(d) requires a producer to report promptly in writing to the Commissioner of Insurance when collected premium remains unaccounted for more than 45 days after the contractual due date, or more than 90 days after receipt when the contract sets no due date. The reporting duty is self-executing and unconditional — it does not wait for an insurer demand, a personal reimbursement, or any dollar threshold.

Why the other options are wrong

  • A) Quietly replacing the funds does not satisfy C.R.S. § 10-2-704(1)(d); the statute requires a prompt written report to the Commissioner.
  • B) An insurer demand is not the trigger; the 45-day (or 90-day) threshold itself starts the reporting duty under C.R.S. § 10-2-704(1)(d).
  • D) C.R.S. § 10-2-704(1)(d) contains no dollar threshold; any unaccounted premium past the statutory days must be reported.

Memory hook

Premium vanished past 45 days? Write the Commissioner.

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