Beyond forbidding lenders from dictating the insurance source for a loan, C.R.S. § 10-3-1105 also prohibits which of the following?

Why D is correct

C.R.S. § 10-3-1105 contains three debtor protections: no required particular insurer or agent, no unreasonable disapproval of the policy the debtor selects, and no separate handling charge for the required insurance. A surcharge tacked onto the mandated coverage is a prohibited burden on the borrower.

Why the other options are wrong

• A) Requiring insurance to protect the loan collateral is lawful; only dictating the source is barred.
• B) A written, factual comparison helps the debtor choose freely and is permitted.
• C) Letting the borrower pick any licensed insurer is exactly the freedom § 10-3-1105 protects.

Memory hook

Don't pick, don't nitpick, don't surcharge — that is § 10-3-1105.

Why C is correct

Along with barring required insurer or agent designations, C.R.S. § 10-3-1105 prohibits imposing a separate handling charge on the debtor for insurance required in connection with the loan. Requiring genuine proof of coverage or placement with an admitted insurer, and allowing premium payments through the lender, are ordinary practices the statute does not condemn.

Why the other options are wrong

• A) Placement with an admitted Colorado insurer is entirely proper; the statute targets required specific sources and extra charges, not admitted placement.
• B) Collecting premiums through the lender is a convenience, not a prohibited handling charge.
• D) Proof that required coverage is in force is a legitimate condition of a secured loan.

Memory hook

Required insurance is fine — an extra 'handling' fee on it is not.