State RegulationsCO specificDifficulty 2/5
A Colorado individual who is not a licensed producer regularly solicits residents to enroll in health insurance policies in exchange for compensation. Under Colorado law, this activity is:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
C.R.S. § 10-2-702(1) and (2) prohibit paying any commission, service fee, or other valuable consideration to a person who sells, solicits, or negotiates insurance unless that person was a duly licensed producer at the time the services were performed. Compensated unlicensed selling therefore violates the statute, and the payor is exposed along with the unlicensed seller.
Why the other options are wrong
- A) Supervision does not substitute for licensure when the person is compensated for selling, soliciting, or negotiating.
- B) Policy standardization is irrelevant; the license requirement turns on the compensated activity, not the product form.
- C) Enrollee consent does not authorize unlicensed compensated insurance activity under C.R.S. § 10-2-702.
Memory hook
No license, no commission — Colorado pays only licensed producers.