State RegulationsCO specificDifficulty 2/5
A dispute arises between an insured in Aurora and her insurer over a denied claim. The producer who solicited and negotiated the application is asked whose interest he represents in the controversy. Under C.R.S. § 10-2-401, the producer represents:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
C.R.S. § 10-2-401(1) provides that a producer who solicits or negotiates an application for insurance represents the insurer, not the insured or the beneficiary, in any controversy arising from the policy. This remains true even though the insured selected and dealt with the producer, and a private agency agreement cannot change the statutory relationship.
Why the other options are wrong
- A) The statutory relationship does not depend on who selected or paid the producer; C.R.S. § 10-2-401(1) fixes the producer as the insurer's representative.
- B) The beneficiary is also not represented by the producer under C.R.S. § 10-2-401(1) when a controversy arises.
- D) An agency agreement cannot override the statutory rule that the producer of the application represents the insurer.
Memory hook
Whoever brings the application works for the insurer — controversy or not.