State RegulationsCO specificDifficulty 3/5
Which of the following sales activities is permitted under C.R.S. 10-3-1104(1)(a)?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
C.R.S. 10-3-1104(1)(a) expressly leaves room for honest comparison: a written, factual policy comparison that permits the client to make an informed decision is not a violation. The provision targets deception - inflated illustrations, presenting a policy as a security, and false financial statements all fall on the prohibited side of Colorado law.
Why the other options are wrong
- A) Overstated dividend projections misrepresent policy benefits, which the subsection prohibits.
- B) Presenting a policy as a security or investment is an enumerated misrepresentation violation.
- C) A false statement about a competitor's financial condition is defamation under C.R.S. 10-3-1104(1)(c), not permitted conduct.
Memory hook
Facts compared fairly are fine; fiction is forbidden.