State RegulationsCO specificDifficulty 2/5
A consumer files a written complaint with the Colorado Division of Insurance about an insurer's claim handling. What may the Commissioner do with the complaint?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under C.R.S. § 10-1-108, the Colorado Commissioner of Insurance may investigate written complaints about insurers and, upon finding violations, take the action the findings justify. This complaint power is one of the Commissioner's core consumer-protection tools alongside examinations and rulemaking.
Why the other options are wrong
- A) The $10,000 per act figure belongs to C.R.S. § 10-3-1109 penalties for violating an existing cease and desist order; it is not an automatic complaint remedy.
- C) Complaints are investigated by the Division; they are not automatically referred for criminal prosecution.
- D) The Commissioner cannot delegate the statutory complaint investigation to the very insurer being complained about.
Memory hook
Complaints land on the Commissioner's desk, who investigates and acts on the findings.