Colorado Life Producer License Practice Test

Within how many days must premiums returned from insurers be credited to the entitled person's account?

1. 10 days

2. 30 days

3. 45 days

4. 60 days

The correct answer is: 30 days

The correct timeframe for insurers to credit returned premiums to an entitled person's account is 30 days. This regulation is designed to ensure that policyholders receive their refunds in a timely manner, promoting transparency and trust in the insurance transaction process. By establishing a 30-day limit, the regulations aim to protect consumers and ensure they are not unduly waiting for funds that belong to them. This period also allows insurers enough time to process any administrative tasks required for the return of premiums, while still being prompt enough to meet the financial needs of policyholders. Understanding this rule helps policyholders know their rights regarding premium refunds and the responsibilities of insurers in handling such transactions. Being aware of this timeframe can aid individuals in managing their finances effectively and knowing when to follow up with their insurer if they do not receive their funds within the established limit.