After a hearing, the Colorado Division of Insurance finds that an insurer committed an unfair method of competition without knowledge of the violation. Under C.R.S. § 10-3-1108, what is the maximum monetary penalty?

Why A is correct

C.R.S. § 10-3-1108(1)(a) sets the base penalty after a hearing under § 10-3-1107: not more than $3,000 per act for an unfair-competition or deceptive-act violation, capped at $30,000 in the aggregate. The enhanced figures apply only when the person is an insurer that knew, or reasonably should have known, it was violating part 11, which is a separate and much steeper tier. Knowing the tier boundary matters in practice, because the same conduct can draw either the $3,000 or the $30,000 per-act exposure depending entirely on the knowledge finding.

Why the other options are wrong

• B) $10,000 per act is the penalty for violating an existing cease and desist order under C.R.S. § 10-3-1109, not the base penalty under § 10-3-1108.
• C) $30,000 per act and $750,000 annually are the enhanced penalties reserved for a knowing insurer, not the standard tier.
• D) $500 per act is the § 10-3-1109 penalty for an individual who violates an existing order, and no $10,000 aggregate cap appears in § 10-3-1108.

Memory hook

Standard C&D math is 3 and 30; knowledge jumps it to 30 and 750.