State RegulationsCO specificDifficulty 1/5
An insured in Denver sues after a coverage dispute and names the producer who solicited the application, claiming the producer acted for the insured. Under C.R.S. § 10-2-401(1), in any controversy arising from the application, the producer is deemed to represent:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
C.R.S. § 10-2-401(1) fixes the producer's legal alignment: a producer who solicits or negotiates an application for insurance on behalf of another represents the insurer, not the insured or the beneficiary, in any controversy arising from the application. This statutory rule applies regardless of who pays the commission or how close the producer's relationship with the applicant may be.
Why the other options are wrong
- A) Soliciting the application does not make the producer the insured's agent; C.R.S. § 10-2-401(1) expressly places the producer on the insurer's side.
- C) Collecting premiums does not shift the representation; the statute names the insurer as the represented party.
- D) Representation is fixed by C.R.S. § 10-2-401(1) as a matter of law and cannot be reassigned by private written agreement.
Memory hook
In a fight, the producer stands with the company, not the client.