State RegulationsCO specificDifficulty 2/5
A business entity wants to act as an insurance agency in Colorado. What does the Colorado Division of Insurance require?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under the requirements administered by the Colorado Division of Insurance, a business entity acting as an insurance agency must obtain an agency license that designates a responsible producer — a Colorado-licensed officer, partner, or director — and the license is issued for a 2-year term, expiring two years from the first day of the month of issue.
Why the other options are wrong
- A) The entity does not need every employee licensed; it needs an agency license designating a responsible producer.
- C) A business entity acting as an insurance agency must hold its own agency license; the individual producers' licenses do not substitute for it.
- D) The agency license term is 2 years, not 180 days; 180 days is the temporary-license maximum.
Memory hook
Entity sells? It needs its own license with a named responsible producer, on a 2-year term.