State RegulationsCO specificDifficulty 2/5
A Colorado Springs insurer declines an applicant solely because another insurer refused or canceled his coverage the previous year. Under Colorado law, this refusal is:
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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)(f) prohibits refusing a person solely because another insurer previously refused, canceled, or did not renew that person's coverage. Each Colorado insurer must evaluate an applicant on the merits; a competitor's earlier decision is not a lawful basis by itself.
Why the other options are wrong
- A) Prior refusal by another carrier is not a merits-based underwriting ground; the statute makes it discriminatory when used as the sole reason.
- B) Documentation of the earlier insurer's reasons does not transform a prohibited basis into a lawful one.
- D) No Division notice converts the conduct; the refusal is prohibited regardless of any reporting step.
Memory hook
Another carrier's 'no' cannot be your 'no' (§ 10-3-1104(1)(f)).