State RegulationsCO specificDifficulty 3/5
Beyond forbidding lenders from dictating the insurance source for a loan, C.R.S. § 10-3-1105 also prohibits which of the following?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
C.R.S. § 10-3-1105 contains three debtor protections: no required particular insurer or agent, no unreasonable disapproval of the policy the debtor selects, and no separate handling charge for the required insurance. A surcharge tacked onto the mandated coverage is a prohibited burden on the borrower.
Why the other options are wrong
- A) Requiring insurance to protect the loan collateral is lawful; only dictating the source is barred.
- B) A written, factual comparison helps the debtor choose freely and is permitted.
- C) Letting the borrower pick any licensed insurer is exactly the freedom § 10-3-1105 protects.
Memory hook
Don't pick, don't nitpick, don't surcharge — that is § 10-3-1105.