State RegulationsCO specificDifficulty 2/5
Which of the following claim-handling acts is enumerated as an unfair claims practice under C.R.S. § 10-3-1104(1)(h)?
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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) enumerates acts including failing to acknowledge claim communications promptly, failing to maintain reasonable investigation standards, refusing to pay without investigation, compelling litigation by low offers, and failing to explain denials. Ignoring a claimant's communications is squarely on the list enforceable by the Colorado Division of Insurance.
Why the other options are wrong
- A) A written denial explaining the specific policy provisions is proper claim handling, not an enumerated unfair act.
- B) Prompt payment after a reasonable investigation is exactly what the statute expects of carriers.
- C) Requesting proof of loss is a legitimate claim requirement when reasonably applied.
Memory hook
Acknowledge, investigate, explain — or the claims list gets you.