State RegulationsCO specificDifficulty 1/5
A licensed Colorado producer who sells policies on behalf of several carriers asks whether he must maintain his own insurance anti-fraud plan under C.R.S. § 10-1-128. The correct answer is that:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
C.R.S. § 10-1-128 places the anti-fraud plan duty on every insurer licensed in Colorado. A producer who sells on behalf of licensed carriers relies on the carriers' plans and does not himself carry the statutory plan obligation.
Why the other options are wrong
- A) The statute assigns the plan duty to insurers; producers are not required to keep one per carrier.
- B) Agency ownership is irrelevant — neither unincorporated producers nor agencies bear the statutory plan duty.
- D) The duty applies to licensed insurers generally, not only to writers of personal lines.
Memory hook
Carriers plan; producers sell — the anti-fraud duty sits with the insurer.