State RegulationsCO specificDifficulty 2/5
An employee of a Colorado insurer reports a suspected fraudulent claim to the company's special investigation unit in good faith; the suspicion later proves mistaken. Under C.R.S. § 10-1-129, the employee:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
C.R.S. § 10-1-129 grants immunity to persons who report suspected insurance fraud in good faith, even if the suspicion turns out to be mistaken. This protection is the reporting backbone of the anti-fraud plan duty in C.R.S. § 10-1-128: employees and others can flag suspicious claims to an insurer's investigative unit without fearing civil liability for honest mistakes.
Why the other options are wrong
- A) A mistaken but good-faith report is precisely what the immunity protects; liability would chill reporting.
- C) There is no statutory obligation for a good-faith reporter to fund the resulting investigation.
- D) Immunity attaches to good-faith reports through the insurer's fraud channels; reporting to law enforcement first is not the immunity condition.
Memory hook
Good faith reported, wrong result? Still immune — honesty buys the shield.