State RegulationsCO specificDifficulty 2/5
Marcus Hale of Denver purchased an individual life insurance policy that is still in force. Marcus dies by suicide three years after the policy was issued. Under Colorado law, what must the insurer do with the death benefit claim?
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 C is correct
Under C.R.S. § 10-7-109, a policy provision excluding death by suicide does not defeat payment when the insured dies by suicide after the first policy year, whether sane or insane, voluntary or involuntary. Marcus's death occurred three years after issue, so the Denver beneficiary is entitled to the full death benefit.
Why the other options are wrong
- A) Suicide after the first policy year cannot defeat the claim under C.R.S. § 10-7-109, so denial on that ground is not permitted.
- B) A premium-refund outcome is not what the statute directs after the first policy year; the full contractual death benefit is payable.
- D) The benefit is the amount fixed by the policy; the Colorado Division of Insurance does not set reduced benefit amounts on claims.
Memory hook
After year one, suicide cannot stop the payout in Colorado.