State RegulationsCO specificDifficulty 2/5
An employee of a Colorado insurer reports suspected claim fraud to law enforcement in good faith. Under C.R.S. 10-1-128, what protection applies?
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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 persons who report suspected fraud in good faith, which is how the statute encourages internal reporting and law-enforcement cooperation. The insurer's anti-fraud plan under the Colorado fraud statute is built around this reporting duty and the immunity that supports it.
Why the other options are wrong
- A) The statute removes that exposure: good-faith reporting carries immunity from liability.
- B) Immunity attaches to good-faith reports and does not depend on prior insurer approval.
- C) Immunity is not limited to reports about fellow employees; good-faith reports of suspected fraud of any kind are covered.
Memory hook
Report in good faith, sleep without worry - immunity is built in.