State RegulationsCO specificDifficulty 2/5
A Colorado small employer asks the producer how much commission the producer will earn on the group health plan it is about to purchase. Under Colorado's commission disclosure rules, what must the producer do?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Colorado requires commission disclosure for health coverage sales under C.R.S. § 10-16-133 and Reg. 1-2-17. When an employer asks, the producer must disclose the compensation arrangements rather than conceal them, which supports informed purchasing decisions in the small-employer market.
Why the other options are wrong
- A) Compensation on the sale is disclosable; confidentiality between producer and carrier does not defeat the disclosure duty.
- C) Disclosure is not deferred until after issuance; the obligation attaches to the sale process itself.
- D) The disclosure duty is not limited to large employers or to multi-option sales.
Memory hook
Ask what the producer earns — Colorado says disclose, not deflect.