The Colorado Division of Insurance discovers an unlicensed entity selling sickness and accident policies to residents of Colorado Springs. Which Colorado authority governs transacting insurance without the required license?

Why D is correct

C.R.S. § 10-3-903 is the Colorado provision addressing unauthorized entities — persons or organizations transacting insurance without the required license or approval fall under the unauthorized-entity provisions of article 3 of title 10. The unfair-competition and commission provisions govern different conduct and do not supply the licensing prohibition itself.

Why the other options are wrong

• A) C.R.S. § 10-3-1104 defines unfair methods of competition and deceptive acts, such as misrepresentation and rebating, not the prohibition on transacting insurance without a license.
• B) C.R.S. § 10-2-702 regulates payment of commissions and fees, which presupposes a licensed producer rather than addressing unauthorized transacting.
• C) C.R.S. § 10-1-108 concerns the Commissioner's handling of complaints, not the prohibition on unlicensed insurance transactions.

Memory hook

No license, no business: 10-3-903 shuts the door.