State RegulationsCO specificDifficulty 2/5
A Colorado producer reports suspected fraud by a policyholder, in good faith, to the insurer's anti-fraud unit. What protection and treatment apply under C.R.S. § 10-1-128?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
C.R.S. § 10-1-128 protects good-faith reporters of suspected insurance fraud with immunity, and it makes insurers' anti-fraud plans proprietary, meaning they are not public records. The practical effect is that producers and insurers can report genuine fraud concerns without fear of civil liability, while the insurer's internal fraud-controls remain confidential.
Why the other options are wrong
- A) Good-faith reporting is precisely what the immunity protects; the reporter need not prove the fraud in court to avoid defamation liability.
- B) Anti-fraud plans and reports under C.R.S. § 10-1-128 are proprietary and expressly not public records.
- D) Immunity attaches to good-faith reports; no advance board approval of individual reports is required by the statute.
Memory hook
Good faith is shielded, and the plan stays private.