State RegulationsCO specificDifficulty 3/5
During a market-conduct review, a Denver agency questions the scope of its recordkeeping duty under Colorado Insurance Regulation 1-1-7. Which statement best states the regulation's record-retention standard?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Colorado Insurance Regulation 1-1-7 requires licensees to keep records that make their insurance trade practices readily ascertainable by the Division of Insurance. The standard is functional: the file must be sufficient for the Division to reconstruct and evaluate the licensee's practices, whatever the record format.
Why the other options are wrong
- A) The duty is not limited to commission-bearing transactions; all records supporting the licensee's insurance practices fall within the regulation.
- C) Regulation 1-1-7 does not require storage at an insurer's home office, and the records are subject to Division examination without a subpoena.
- D) Policy expiration does not end the retention duty; records must remain available so the practices stay readily ascertainable.
Memory hook
Keep files the Division can read like a book under Reg. 1-1-7.