State RegulationsCO specificDifficulty 2/5
A Colorado producer gives an applicant a written, factual side-by-side comparison of the applicant's existing life policy and a proposed replacement, so the applicant can make an informed decision. Which statement is correct under Colorado law?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
C.R.S. § 10-3-1104(1)(a) targets misleading representations about policies, but it expressly does not reach a written, factual policy comparison that permits the applicant to make an informed decision. The law encourages honest side-by-side information; it punishes distortion, not disclosure.
Why the other options are wrong
- A) A factual comparison is not made unlawful merely because the replacement happens to look better.
- C) Colorado law imposes no consent requirement from the existing insurer for a factual comparison.
- D) Removing all references to the existing policy would defeat the informed comparison and move the producer toward the replacement disclosure duties, not away from liability.
Memory hook
Facts on paper protect; fiction on paper condemns.