State RegulationsCO specificDifficulty 3/5
A person in Colorado Springs solicits and sells insurance policies to the public while holding no insurance license of any kind. Under Colorado law, this conduct is:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under the Colorado Insurance Code, transacting insurance without the required license is an unauthorized insurance business addressed by C.R.S. § 10-3-903 through 10-3-904.5, 10-3-906, and 10-3-908. The Colorado Division of Insurance may act against unlicensed transacting, and issuing through an admitted insurer does not cure the seller's lack of licensure.
Why the other options are wrong
- A) The admitted status of the insurer does not authorize the seller; the licensing requirement attaches to the person transacting the business.
- B) County registration has no effect; the licensing authority is the Colorado Division of Insurance, not a county clerk.
- D) A policy-count limit does not authorize unlicensed selling; the 25-individual figure belongs to the uncompensated furnishing exemption and does not cover compensated selling.
Memory hook
No license, no selling — the Division polices the unauthorized.