State RegulationsCO specificDifficulty 1/5
Which entities must maintain an insurance anti-fraud plan under C.R.S. § 10-1-128?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
C.R.S. § 10-1-128 requires every licensed insurer to maintain an insurance anti-fraud plan covering the prevention, detection, and investigation of fraud, the education of employees and investigators, and reporting to law enforcement. The duty attaches automatically with licensure from the Colorado Division of Insurance, regardless of line of business or domicile.
Why the other options are wrong
- A) The anti-fraud plan duty applies to all licensed insurers, not only those selling life insurance.
- C) An insurer's principal place of business is irrelevant; licensure in Colorado is the trigger.
- D) The duty is automatic for every licensed insurer; no Division designation is required.
Memory hook
Licensed in Colorado? Then you need a fraud plan.