State RegulationsCO specificDifficulty 3/5
The marketing departments of two Denver insurers exchange false statements about each other's financial condition. In addition to the unfair-competition consequences under C.R.S. 10-3-1104(1)(c), how does Colorado law treat company-to-company defamation of this kind?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
C.R.S. 10-1-116 makes company-to-company defamation - false or maliciously critical statements about the financial condition of an insurer made by another insurer - a petty offense in Colorado, supplementing the unfair-competition prohibition of C.R.S. 10-3-1104(1)(c).
Why the other options are wrong
- A) The statute classifies the conduct as a petty offense; a felony designation with blanket revocation is not the Colorado treatment.
- C) This conduct is addressed directly by Colorado statutes; no exclusive federal antitrust regime applies to it.
- D) The conduct does carry a criminal dimension - the petty offense classification under C.R.S. 10-1-116.
Memory hook
Insurer-to-insurer mudslinging is a petty offense.