State RegulationsCO specificDifficulty 2/5
During a market review, the Colorado Division of Insurance receives information that a lending company in Denver may be selling coverage without being authorized as an insurer. What may the Division do?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The Colorado Commissioner of Insurance holds general investigative and examination powers under C.R.S. 10-1-201 to 10-1-207, which the Division uses to determine whether an entity is transacting insurance without the authorization addressed by C.R.S. 10-3-903. Producers should know the Division actively polices unauthorized entities.
Why the other options are wrong
- A) The Division's oversight is not limited to already-licensed insurers; detecting unauthorized activity is a core purpose of its investigation and examination authority.
- C) Blanket revocation of all Denver-area producer licenses is not a lawful or available remedy.
- D) Rate-setting is not the Division's response to an entity that may not lawfully transact insurance at all.
Memory hook
Suspect an unlicensed seller? The Division investigates and examines.