A Colorado producer lets an unlicensed marketing assistant solicit and negotiate an application, then asks the insurer to pay the assistant a share of the commission. Under C.R.S. § 10-2-702, what is the result?

Why D is correct

C.R.S. § 10-2-702(1) and (2) bar the payment of any commission, service fee, or other valuable consideration to any person selling, soliciting, or negotiating insurance unless that person was a duly licensed producer at the time the services were performed. Licensure is measured at the moment of the work, so later passing the exam cannot legitimize the earlier payment. For Colorado agencies, this is why unlicensed staff may support the sale with clerical help but must never solicit or negotiate, and why the commission must go only to licensed hands.

Why the other options are wrong

• A) Supervision by a licensed producer is no substitute for the assistant's own licensure; the statute keys on the licensee status of the person who performed the services.
• B) The 90-day window governs nonresident prelicensing exemptions, not retroactive commission eligibility; licensure must exist when the services are performed.
• C) The prohibition contains no monetary threshold; any commission or valuable consideration to an unlicensed person who sold, solicited, or negotiated is barred.

Memory hook

Licensed at the time of the sale, or the commission is illegal.