State RegulationsCO specificDifficulty 2/5
A Colorado employer is counting workers for small-group eligibility purposes under the rules administered by the Colorado Division of Insurance. Which individual would generally be counted as an eligible employee?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The eligible-employee concept in Colorado small-group law (C.R.S. § 10-16-102, implemented through Colorado Division of Insurance rules such as Reg. 4-6-8) is anchored to workers on the employer's payroll who satisfy the plan's eligibility requirements. Persons who are not the employer's employees — contractors, staffing-agency workers, or retirees with no payroll status — do not enter the count.
Why the other options are wrong
- B) A contractor not on the payroll is not an employee of the employer and is not counted toward eligibility.
- C) A staffing-agency worker remains on the agency's payroll, not the employer's, so the employer does not count them.
- D) A retiree receiving only pension payments has no current employment status and is not an eligible employee.
Memory hook
Eligible employee = your payroll, your plan's rules.