State RegulationsCO specificDifficulty 2/5
Which of the following practices complies with the advertising standards for life insurance enforced by the Colorado Division of Insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Advertising standards enforced by the Colorado Division of Insurance permit truthful, complete promotion of a policy's actual benefits. The Division's requirement is that advertisements accurately identify the product and the insurer and never mislead as to benefits, terms, or guarantees — accuracy is the line between compliant and noncompliant marketing of life insurance.
Why the other options are wrong
- A) A name implying state backing is misleading because the State of Colorado does not guarantee private life insurance policies.
- B) Advertising benefits the policy does not provide is a classic misrepresentation and directly violates the Division's advertising standards.
- D) An advertisement must identify the insurer issuing the policy; omitting that identification is misleading about who stands behind the product.
Memory hook
True, complete, and traceable — that's a compliant ad.