State RegulationsCO specificDifficulty 1/5
A Colorado producer solicits and negotiates a life insurance application for a client in Boulder. In any controversy arising from the application, the producer is regarded by law as representing:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
C.R.S. § 10-2-401(1) provides that a producer who solicits or negotiates an application for insurance represents the insurer, not the insured or beneficiary, in any controversy. This is a settled agency rule in Colorado: even though the producer may feel like the client's advocate, the law assigns the producer to the insurer's side.
Why the other options are wrong
- B) Colorado law expressly rejects the idea that the soliciting producer represents the insured in a controversy.
- C) The beneficiary likewise is not the producer's principal under C.R.S. § 10-2-401(1).
- D) An attorney representing a party in a controversy does not become the producer's principal; the producer's legal principal is the insurer.
Memory hook
Whoever solicits stands with the insurer — that is the Colorado rule.