State RegulationsCO specificDifficulty 1/5
Under C.R.S. § 10-3-1104(1)(h), an insurer commits an unfair claim settlement practice when the conduct is either willful or:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
C.R.S. § 10-3-1104(1)(h) reaches claim-handling conduct that is either a willful violation or so frequent as to indicate a general business practice. The frequency branch means the Colorado Division of Insurance need not prove intent when a pattern exists; a single written complaint or any dollar threshold is not the statutory trigger.
Why the other options are wrong
- A) One written complaint does not establish the violation; the statute requires willfulness or a pattern of frequency.
- C) No dollar threshold appears in the statute; the triggers are willfulness and general business practice.
- D) The adjuster's licensing status is not the operative test — the insurer's claim-handling pattern is.
Memory hook
Willful once or habitual often — both violate (§ 10-3-1104(1)(h)).