Under the disclosure standards administered by the Colorado Division of Insurance, when should a producer make the required disclosures for a life insurance sale?

Why B is correct

Disclosures must be made before or at the time of the application or sale, because the purpose recognized by the Colorado Division of Insurance is to inform the applicant's purchasing decision. Waiting until after delivery defeats that purpose; the applicant must understand the policy's material features before committing to the purchase.

Why the other options are wrong

• A) Post-delivery information comes too late to inform the purchase decision; disclosure is required before or at the time of application or sale.
• C) The duty is proactive and does not depend on the applicant asking; a producer must disclose material facts without waiting for questions.
• D) Division inquiries are an enforcement mechanism, not the trigger for disclosure; the duty attaches at application or sale.

Memory hook

Tell them before they sign, not after it's too late.