State RegulationsCO specificDifficulty 2/5
The Colorado Commissioner of Insurance believes an Aurora insurer has committed deceptive trade practices and intends to impose a monetary penalty under C.R.S. § 10-3-1108. What procedural step must occur before the penalty is imposed?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
C.R.S. § 10-3-1108(1)(a) authorizes monetary penalties after a hearing held pursuant to C.R.S. § 10-3-1107, which proceeds under the State Administrative Procedure Act. The hearing protects the insurer's due-process rights and must precede any penalty, suspension, or revocation order.
Why the other options are wrong
- B) Penalties under C.R.S. § 10-3-1108 are administrative, imposed after an administrative hearing; a criminal indictment is not a prerequisite.
- C) Newspaper publication plays no role in the hearing process established by C.R.S. § 10-3-1107.
- D) The insurer's consent is irrelevant; the hearing requirement exists to protect the respondent, not to obtain its agreement.
Memory hook
No penalty without a hearing; the administrative procedure comes first.