State RegulationsCO specificDifficulty 1/5
Under Colorado Insurance Regulation 1-1-7, what standard applies to the records a licensed producer keeps of its insurance transactions?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Colorado Insurance Regulation 1-1-7 requires licensees to keep records so that their insurance practices are readily ascertainable — the Division must be able to reconstruct from the records what the licensee did and why. This recordkeeping standard supports the Division's examinations and inquiries under the Colorado Insurance Code.
Why the other options are wrong
- A) Reg. 1-1-7 does not require filing every transaction record with the Division within 10 calendar days; it sets a readily-ascertainable recordkeeping standard.
- B) Records may not simply be discarded once a policy is issued; they must be maintained so that practices are readily ascertainable.
- C) Producers as well as insurers must maintain records under Reg. 1-1-7; the duty is not the insurer's alone.
Memory hook
Keep records a stranger could read: readily ascertainable.