State RegulationsCO specificDifficulty 2/5
A Colorado unlicensed marketing assistant negotiates a life insurance application and asks the producing agent to share the commission. Under C.R.S. § 10-2-702, paying that commission is:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
C.R.S. § 10-2-702(1) and (2) prohibit paying any commission, service fee, or other valuable consideration to a person for selling, soliciting, or negotiating insurance unless that person was a duly licensed producer at the time the services were performed. Licensure must exist when the work is done, not afterward.
Why the other options are wrong
- A) Supervision by a licensed producer does not substitute for the assistant's own licensure at the time of the solicitation or negotiation.
- B) Passing the examination later does not cure the unlicensed negotiation, and the 90-day figure concerns nonresident education exemptions, not commissions.
- D) The prohibition turns on licensure at the time of the sale, not on whether the unlicensed person also collected premiums.
Memory hook
No license at the time of the sale, no commission — ever.