State RegulationsCO specificDifficulty 1/5
An insurer reports a producer's fraudulent-act judgment to the producer's licensing board, and the producer then sues the insurer for civil damages over the report. Under C.R.S. § 10-1-128, the insurer:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
C.R.S. § 10-1-128 grants immunity from civil action to persons and insurers that report fraudulent-act judgments or settlements to licensing boards, so a good-faith report cannot be the basis of a damages award against the reporting insurer. The immunity protects the reporting channel that the anti-fraud framework depends on.
Why the other options are wrong
- A) The statute grants immunity for good-faith reports, so an adverse report alone does not create liability.
- C) No consent requirement exists; the duty to report fraudulent-act judgments is not conditioned on the wrongdoer's agreement.
- D) The statute does not route reports through prior Division approval; the insurer reports directly to the licensing board.
Memory hook
Report the judgment, face no lawsuit — the statute shields the messenger.