State RegulationsCO specificDifficulty 1/5
Which of the following is excluded from the scope of Colorado Insurance Regulation 4-1-4 on life insurance replacements?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Colorado Insurance Regulation 4-1-4 governs life replacements, but credit life insurance and non-solicited group life are carved out of its scope. These products arise from credit transactions or employer-group arrangements rather than an agent-induced switch, so the notice-and-record machinery aimed at twisting does not apply. Individually solicited life sales — including same-insurer exchanges and payroll-deduction sales following a producer's presentation — remain fully subject to the regulation.
Why the other options are wrong
- A) A face-to-face individually sold term policy is the classic replacement fact pattern and is squarely covered by the regulation.
- C) A producer-involved exchange for a new policy at the same insurer is still a replacement under the regulation.
- D) Payroll deduction does not remove a policy from the regulation when the sale itself was individually solicited.
Memory hook
Credit life and quiet group life opt out; every solicited switch stays in.