State RegulationsCO specificDifficulty 2/5
A Boulder insurer is printing new claim forms. Under C.R.S. § 10-1-128, the statutory fraud warning it must include on those forms tells applicants that knowingly providing false, incomplete, or misleading facts to an insurance company for the purpose of defrauding it may result in:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
C.R.S. § 10-1-128 requires every insurer to include the verbatim statutory fraud warning on all printed applications, policies, and claim forms. The required notice states that it is unlawful to knowingly provide false, incomplete, or misleading facts to an insurance company for the purpose of defrauding it, and that penalties may include imprisonment, fines, denial of insurance, and civil damages.
Why the other options are wrong
- B) A written reprimand is not among the penalties the statutory warning declares; it lists imprisonment, fines, denial of insurance, and civil damages.
- C) The warning does not announce automatic revocation of a producer's license as a consequence for providing false facts.
- D) Community service ordered by the Division of Insurance is not part of the verbatim notice the statute requires.
Memory hook
Jail, fines, denial, damages — the fraud warning spells it out.