State RegulationsCO specificDifficulty 2/5
A Boulder producer tells a colleague that the Division of Insurance's regulations are merely advisory suggestions that licensees may ignore. Regarding regulations adopted by the Commissioner under C.R.S. § 10-1-109, which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under C.R.S. § 10-1-109 the Colorado Commissioner of Insurance adopts regulations to implement the insurance statutes, and those regulations are binding on licensees. A producer who disregards a Division regulation risks fines, license sanctions, or other enforcement action by the Division of Insurance.
Why the other options are wrong
- A) Division regulations apply to licensees generally, including individual producers, not only to insurers.
- B) Commissioner-adopted regulations take effect under the rulemaking authority of C.R.S. § 10-1-109 and do not require ratification by the legislature.
- C) The Commissioner's rulemaking covers the full scope of the insurance statutes administered by the Division, not just insurer claim practices.
Memory hook
Division regs are not tips; they are rules the Commissioner can enforce.