State RegulationsCO specificDifficulty 2/5
An employee of a Colorado insurer reports suspected insurance fraud to law enforcement in good faith, though the suspicion later proves mistaken. Under C.R.S. § 10-1-128, the employee:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
C.R.S. § 10-1-128 grants immunity to good-faith reporters of suspected insurance fraud, so a mistaken but honest report creates no liability. The same section keeps the insurer's anti-fraud plan proprietary and out of the Colorado public records.
Why the other options are wrong
- A) Immunity attaches to good-faith reports even when the suspicion is not ultimately substantiated.
- B) The statute contemplates reporting to law enforcement and does not condition immunity on prior insurer approval.
- C) Reporting to law enforcement is what the anti-fraud plan is designed to produce; it does not forfeit immunity.
Memory hook
Good faith reported, immunity given — honest mistakes are protected.