State RegulationsCO specificDifficulty 1/5
Under C.R.S. § 10-3-1104(1)(d), coercion in an insurance transaction occurs when a person:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
C.R.S. § 10-3-1104(1)(d) defines the unfair trade practice of coercion: compelling or attempting to compel any person to enter an insurance transaction by threat, intimidation, or the imposition of an unreasonable burden. Coercion strips the applicant of free choice, which is why the Colorado Division of Insurance treats it as an enforceable unfair-competition violation.
Why the other options are wrong
- A) Truthful rate comparisons are honest, permitted marketing conduct, not coercion.
- B) Administrative paperwork delays have nothing to do with compelling a transaction by threat or burden.
- D) Actuarially justified rating differences are lawful and are the opposite of compulsion.
Memory hook
Coercion = threat, intimidation, or unreasonable burden — force is not a sales tool.