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State RegulationsCO specificDifficulty 1/5

A beneficiary in Denver submits a completed payout request with due proof of death for a Colorado life policy. Under C.R.S. § 10-7-112, over what period does interest accrue on the death benefit at the proceeds-left-on-deposit rate?

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

Why A is correct

C.R.S. § 10-7-112 runs interest on death benefits from the date of death through 30 days after the insurer receives a complete payout request accompanied by due proof of death, accruing at the rate applied to proceeds left on deposit. This guarantees the beneficiary earns interest for the entire period the insurer holds the money, beginning at death. Only after that 30-day window does the statutory rate structure shift to the federal-discount-rate formula.

Why the other options are wrong

  • B) The interest obligation begins at death, not at application or delivery of the policy.
  • C) Premium history is irrelevant; the statute measures interest from the date of death.
  • D) Interest does not stop at a funeral date; it continues through 30 days after the complete proof is received.

Memory hook

Interest starts at death and runs 30 days past the proof — the clock never starts earlier.

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