State RegulationsCO specificDifficulty 1/5
Under C.R.S. 10-1-128, Colorado's insurance fraud statute, what must every licensed insurer maintain?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
C.R.S. 10-1-128 requires every licensed insurer to maintain an insurance anti-fraud plan covering prevention, detection, and investigation of fraud, employee education, and reporting to law enforcement. The obligation attaches to all licensed insurers in Colorado regardless of the line of business they write.
Why the other options are wrong
- B) The statute requires a plan, not a minimum staffing level; no headcount figure appears in Colorado law.
- C) Anti-fraud plans are proprietary and not public records; a public registry is contrary to the statute's design.
- D) The duty applies to every licensed insurer, not only to life insurers.
Memory hook
Every insurer needs an anti-fraud plan.