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State RegulationsCO specificDifficulty 1/5

A Colorado life insurer prepares its standard application, policy, and claim forms for delivery in Aurora. Under C.R.S. § 10-1-128, where must the statutory insurance fraud warning appear?

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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 directs that the statutory fraud warning appear conspicuously on all printed applications, policies, and claim forms, so a life application delivered in Aurora must carry it just as the policy and later claim forms do. The same statute protects good-faith reporters of suspected fraud with immunity, which encourages the internal reporting the anti-fraud plan depends on. Placing the warning on every customer-facing document ensures applicants and claimants see the consequences of fraud before they sign or submit.

Why the other options are wrong

  • A) The warning is required on applications and policies as well as claim forms, so limiting it to claims paperwork understates the statute.
  • C) No website or annual-report placement requirement exists under the fraud statute; the mandated locations are the printed documents.
  • D) Applications and claim forms are expressly covered, so the warning is not confined to delivered policies.

Memory hook

Fraud warning goes on every paper the customer touches: application, policy, claim form — big and bold.

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