A dispute arises over coverage under a policy sold by a producer to a client in Colorado Springs, and the client demands that the producer represent her interests. Under C.R.S. § 10-2-401(1), whom does a producer who solicited or negotiated the application represent in a controversy?

Why A is correct

C.R.S. § 10-2-401(1) fixes the producer's relation: a producer who solicits or negotiates an application for insurance represents the insurer, not the insured or the beneficiary, in any controversy arising from the transaction. This is true regardless of the commission arrangement or the client's expectations, a point the Colorado Division of Insurance tests frequently.

Why the other options are wrong

• B) Premium collection does not change the producer's statutory relation; C.R.S. § 10-2-401(1) makes the producer the insurer's representative.
• C) The representation is fixed by statute; an agency agreement cannot redefine it in a controversy.
• D) Delivery of the policy does not shift the producer's allegiance; the statute names the insurer as the represented party.

Memory hook

A Colorado producer is the insurer's person in any controversy.

Why B is correct

C.R.S. § 10-2-401(1) fixes the producer's legal alignment: a producer who solicits or negotiates an application for insurance on behalf of another represents the insurer, not the insured or the beneficiary, in any controversy arising from the application. This statutory rule applies regardless of who pays the commission or how close the producer's relationship with the applicant may be.

Why the other options are wrong

• A) Soliciting the application does not make the producer the insured's agent; C.R.S. § 10-2-401(1) expressly places the producer on the insurer's side.
• C) Collecting premiums does not shift the representation; the statute names the insurer as the represented party.
• D) Representation is fixed by C.R.S. § 10-2-401(1) as a matter of law and cannot be reassigned by private written agreement.

Memory hook

In a fight, the producer stands with the company, not the client.

Why C is correct

C.R.S. § 10-2-401(1) provides that a producer who solicits or negotiates an application for insurance represents the insurer, not the insured or the beneficiary, in any controversy arising from the policy. This remains true even though the insured selected and dealt with the producer, and a private agency agreement cannot change the statutory relationship.

Why the other options are wrong

• A) The statutory relationship does not depend on who selected or paid the producer; C.R.S. § 10-2-401(1) fixes the producer as the insurer's representative.
• B) The beneficiary is also not represented by the producer under C.R.S. § 10-2-401(1) when a controversy arises.
• D) An agency agreement cannot override the statutory rule that the producer of the application represents the insurer.

Memory hook

Whoever brings the application works for the insurer — controversy or not.