State RegulationsCO specificDifficulty 1/5
In Colorado, an insurer that transacts the business of insurance in this state without a certificate of authority issued by the Division of Insurance is best described as:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under C.R.S. § 10-3-903, an insurer transacting the business of insurance in Colorado without a certificate of authority from the Colorado Division of Insurance is an unauthorized insurer. Doing business with such an entity is prohibited precisely because it operates outside the Division's supervision and consumer protections.
Why the other options are wrong
- A) An admitted carrier holds a certificate of authority — the exact opposite of the entity described.
- B) A reciprocal exchange is a form of insurer ownership structure, not a measure of authorization status.
- C) A fraternal benefit society operates under its own Colorado framework and does not describe an entity lacking a certificate of authority.
Memory hook
Certificate missing? Then the insurer is unauthorized in Colorado.