State RegulationsCO specificDifficulty 2/5
A Colorado insurer charges two life applicants of the same class and equal expectation of life noticeably different premiums for identical coverage. Under C.R.S. § 10-3-1104(1)(f), this 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)(f) sets Colorado's life-insurance discrimination standard: individuals of the same class and with equal expectation of life must not be treated differently in premiums or coverage. Charging unequal rates to equal risks is unfair discrimination, which the Commissioner of Insurance may sanction under part 11 of article 3 of title 10.
Why the other options are wrong
- A) There is no first-year exception that permits unequal treatment of equal risks.
- B) No premium or contract benefit was returned to either applicant, so the rebate prohibition is not involved.
- C) Identical policy forms do not cure unequal pricing between risks that are legally the same.
Memory hook
Same class, same lifespan, same price.