State RegulationsCO specificDifficulty 2/5
An insurer makes settlement offers so low that claimants are effectively forced into litigation, and it fails to explain the reasons when it denies claims. Under C.R.S. 10-3-1104(1)(h), these are:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
C.R.S. 10-3-1104(1)(h) enumerates compelling policyholders to institute litigation by offering substantially less than the claim may be worth, and failing to explain the reasons for a denial. Both behaviors described are named unfair claim settlement practices that the Colorado Division of Insurance can act against.
Why the other options are wrong
- A) Discretion over settlement values does not authorize offers designed to force litigation or unexplained denials.
- B) C.R.S. 10-3-1105 governs required insurance in loan transactions, not claim handling.
- D) The rebate prohibition concerns inducements to purchase insurance, not claims conduct.
Memory hook
Starve them into court, stay silent on why - two named unfair practices.