State RegulationsCO specificDifficulty 3/5
Which practice is permitted under C.R.S. § 10-3-1104(1)(a)?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
C.R.S. § 10-3-1104(1)(a) expressly permits providing a written, factual policy comparison that permits an informed decision. The prohibition targets misrepresentation — false benefit or dividend statements, misleading policy names or titles, and presenting a policy as a security — not honest side-by-side comparisons.
Why the other options are wrong
- A) Presenting a life policy as a security is expressly prohibited by C.R.S. § 10-3-1104(1)(a).
- B) Misstating projected dividends to induce replacement is misrepresentation under C.R.S. § 10-3-1104(1)(a).
- D) A misleading policy title is a prohibited misrepresentation under C.R.S. § 10-3-1104(1)(a).
Memory hook
Facts in writing are fine; fantasies are forbidden.