Under the suitability standards enforced in Colorado for life insurance and annuity recommendations, a producer's recommendation must be based primarily on:

Why D is correct

Colorado's suitability requirements, administered by the Colorado Division of Insurance and the Colorado Commissioner of Insurance, require that a recommendation rest on the applicant's financial situation, needs, and objectives — not on the producer's compensation or convenience. A recommendation that cannot be tied to the customer's circumstances is unsuitable by definition. This standard disciplines product placement across life insurance and annuity sales in the state.

Why the other options are wrong

• A) Compensation is exactly what suitability rules screen out; the recommendation must serve the applicant, not the commission.
• B) An insurer's sales goals impose no suitability duty on consumers and cannot justify a recommendation.
• C) Administrative convenience for the agency has no place in a suitability analysis.

Memory hook

Suit the customer, not the seller — needs, finances, objectives first.