State RegulationsCO specificDifficulty 1/5
Under C.R.S. § 10-3-1104(1)(h), which insurer conduct is an unfair claims settlement practice?
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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) enumerates unfair claims practices, including refusing to pay claims without conducting a reasonable investigation based on all available information. Prompt acknowledgment of communications, written denial explanations, and prompt settlement where liability is clear are the affirmative duties the provision expects of Colorado insurers.
Why the other options are wrong
- A) Prompt acknowledgment of claim communications is a required practice, not a violation.
- C) Explaining the basis for a denial is a duty under C.R.S. § 10-3-1104(1)(h), not a violation.
- D) Prompt payment where liability is reasonably clear is what the statute expects of insurers.
Memory hook
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