State RegulationsCO specificDifficulty 1/5
Under C.R.S. § 10-1-128, the statutory fraud warning that appears on Colorado insurance applications, policies, and claim forms alerts applicants that knowingly providing false, incomplete, or misleading facts to defraud an insurer may result in which of the following?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
The statutory fraud warning required by C.R.S. § 10-1-128 tells applicants that knowingly providing false, incomplete, or misleading facts to an insurance company for the purpose of defrauding it may result in imprisonment, fines, denial of insurance, and civil damages. These are the penalties the conspicuous warning is designed to communicate.
Why the other options are wrong
- A) The warning is not limited to a civil fine payable to the insurer; it lists criminal and civil consequences alike.
- C) Community service ordered by the Division is not among the consequences the statutory warning recites.
- D) Driver's license revocation is unrelated to insurance fraud and does not appear in the warning.
Memory hook
Jail, fines, lost coverage, damages — that is what the warning spells out.