State RegulationsCO specificDifficulty 2/5
A business entity wants to sell insurance in Colorado through its employees. Under Colorado Division of Insurance requirements for agency licenses, which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Per the Colorado Division of Insurance, a business entity obtains an agency license by designating a responsible producer who is a Colorado-licensed officer, partner, or director, and the license runs for a 2-year term expiring two years from the first day of the month of issue. The designated responsible producer anchors the entity's accountability to the Division. The entity structure lets the business transact broadly while individual licensure obligations fall on the designated responsible person and on whichever employees actually perform producer activities.
Why the other options are wrong
- A) Only the responsible producer designation is required; licensure of every employee is not a condition of issuing the agency license.
- C) The agency license term is 2 years, not 1, and agency licenses are renewable.
- D) The designated responsible producer must hold a Colorado license, so an unlicensed attorney-in-fact designation does not satisfy the requirement.
Memory hook
One licensed responsible officer carries the agency for 2 years.