State RegulationsCO specificDifficulty 1/5
Under C.R.S. § 10-2-401(3)(b), which activity is exempt from Colorado producer licensing requirements?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
C.R.S. § 10-2-401(3)(b) exempts a person furnishing life insurance not exceeding $50,000 in face amount, or other insurance on not more than 25 individuals, so long as no compensation is received. The exemption protects limited, uncompensated coverage activities rather than commercial selling.
Why the other options are wrong
- A) The 25-individual exemption covers other insurance furnished without compensation; a commissioned sale of accident and health policies is a licensed activity.
- B) Life insurance exceeding the $50,000 face-amount ceiling is outside the exemption of C.R.S. § 10-2-401(3)(b), even if furnished without compensation.
- C) Compensation, including a salary, defeats the exemption; C.R.S. § 10-2-401(3)(b) applies only when no compensation is received.
Memory hook
Fifty thousand on lives, twenty-five folks otherwise, and never a penny.