State RegulationsCO specificDifficulty 3/5
An organizer in Aurora wants to buy group life insurance for a collection of individuals. Under Colorado group life provisions (C.R.S. § 10-7-201 through 207), which requirement applies to the group itself?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under C.R.S. § 10-7-201 through 207, group life coverage attaches to groups that exist for a purpose other than purchasing insurance, such as an employer's workforce or an association's membership. This structure keeps group life tied to genuine common interests among the members and prevents assembling a group solely for the purpose of buying coverage.
Why the other options are wrong
- A) Requiring the group to be formed mainly to buy insurance describes exactly what the group provisions do not allow.
- B) The provisions do not limit groups to executives; legitimate employer and association groups qualify.
- C) Blood or marriage relations are not required for a valid group; employer-employee and association groups qualify without family ties.
Memory hook
Groups meet for a mission, not for insurance.