State RegulationsCO specificDifficulty 2/5
A Colorado producer's records show collected premium that remains unaccounted for more than 45 days after the contractual due date. What does C.R.S. § 10-2-704 require the producer to do?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
C.R.S. § 10-2-704(1)(d) requires a producer to report promptly in writing to the Commissioner when collected premium remains unaccounted for more than 45 days after the contractual due date, or more than 90 days after receipt when no due date exists. The reporting duty is the producer's own and does not wait for anyone else to complain. For a Colorado agency, prompt written disclosure is the compliant path, and trying to quietly cover the shortfall only compounds the fiduciary breach.
Why the other options are wrong
- A) The reporting obligation is triggered by the passage of the statutory window itself, not by any complaint from the insurer.
- C) Replacing funds from personal money is not the statutory remedy and does not erase the written reporting duty.
- D) The statute imposes a reporting duty on the producer; it does not defer action until an automatic appointment termination.
Memory hook
Premium gone missing past the deadline? Written report to the Commissioner, fast.