State RegulationsCO specificDifficulty 1/5
Under C.R.S. § 10-3-1104(1)(a), which of the following is a misrepresentation?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
C.R.S. § 10-3-1104(1)(a) prohibits misrepresenting the benefits, privileges, or terms of a policy, its dividends, or the true financial condition of any insurer. Falsely promising dividends misleads the applicant about the contract's actual value, which is the core deception the statute targets.
Why the other options are wrong
- B) Quoting filed rates is accurate disclosure, the opposite of misrepresentation.
- C) Explaining exclusions gives the applicant truthful information and is required honesty, not a violation.
- D) A documented needs analysis is a legitimate sales practice, not a false statement about benefits or terms.
Memory hook
Promise only what the policy pays — invented dividends misrepresent (§ 10-3-1104(1)(a)).