State RegulationsCO specificDifficulty 2/5
Which of the following persons may lawfully transact an insurance sale in Colorado?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under C.R.S. § 10-3-903 and the related unauthorized-entity provisions, insurance business may be transacted in Colorado only through licensed producers working with insurers authorized by the Colorado Division of Insurance. Anyone else who sells, solicits, or negotiates insurance is acting as an unauthorized entity and is subject to enforcement by the Commissioner.
Why the other options are wrong
- A) An unlicensed bank employee may not sell, solicit, or negotiate insurance, even for an authorized insurer.
- C) A representative of an unauthorized insurer is precisely the conduct the unauthorized-entity provisions prohibit.
- D) Selling policies from an unauthorized offshore insurer is unlawful in Colorado regardless of the sales channel used.
Memory hook
Licensed producer plus authorized insurer — that is the only legal pair.