State RegulationsCO specificDifficulty 2/5
A Colorado insurer's marketing materials include required disclosures about policy charges. Which statement reflects the Division of Insurance's expectations for those disclosures?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The Colorado Division of Insurance expects consumer disclosures to be clear and conspicuous, so the applicant can actually absorb the information about charges and features. Buried, oral-only, or misleading disclosure defeats the informational purpose and can draw regulatory action.
Why the other options are wrong
- B) Oral-only communication does not satisfy the Division's expectation of clear, written disclosure.
- C) Required disclosures supplement, and do not replace, delivery of the actual policy contract.
- D) The Division of Insurance sets disclosure standards; it does not draft each insurer's disclosure text.
Memory hook
Clear and conspicuous, or it does not count.