State RegulationsCO specificDifficulty 1/5
Under C.R.S. § 10-3-1104(1)(h), an insurer's claim-handling conduct constitutes an unfair claim settlement practice when the act or practice is:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
C.R.S. § 10-3-1104(1)(h) is enforced where the violation is willful or where its frequency indicates a general business practice. Enumerated acts include failing to acknowledge communications promptly, failing to maintain reasonable investigation standards, refusing to pay claims without conducting a reasonable investigation, compelling litigation by lowball offers, and failing to explain claim denials.
Why the other options are wrong
- A) C.R.S. § 10-3-1104(1)(h) contains no complaint-count trigger; enforcement keys on willfulness or frequency, not a complaint tally.
- B) The provision reaches any of the enumerated claim-handling acts, such as delayed acknowledgments or lowball offers, and is not limited to written denials.
- C) Mere allegations by claimants trigger nothing under C.R.S. § 10-3-1104(1)(h); the statute looks at the insurer's willfulness or the frequency of the practice.
Memory hook
Willful or widespread — that is when claim practices bite.