State RegulationsCO specificDifficulty 1/5
What consequence does Colorado Insurance Regulation 1-1-8 attach to a failure to respond, or an incomplete response, to a Division of Insurance inquiry?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Reg. 1-1-8 provides that a failure to respond, or an incomplete response, to a Division of Insurance inquiry draws an immediate minimum fine of $500 per act or occurrence. There is no grace period or escalating warning sequence built into the regulation, which is why Colorado licensees are trained to calendar the 10-day and 20-day response windows the moment an inquiry arrives. The regulation also allows extensions only on written request at the Division's discretion, so silence is never a safe default.
Why the other options are wrong
- A) The regulation imposes monetary fines; it does not provide for automatic revocation of a license for a missed response.
- C) There is no warning-letter sequence; the minimum $500 fine applies immediately to each act or occurrence of non-response.
- D) No 30-day new-business suspension is provided by Reg. 1-1-8; the stated consequence is the fine.
Memory hook
Silence costs $500 — per act, right away, no warnings first.