State RegulationsCO specificDifficulty 1/5
A Colorado business entity applies for an agency license and designates a responsible producer. For what term is the agency license issued?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under the Colorado licensing framework administered by the Division of Insurance, a business entity must obtain an agency license designating a responsible producer, such as a Colorado-licensed officer, partner, or director. The agency license runs for a term of 2 years and expires two years from the first day of the month of issue.
Why the other options are wrong
- A) The agency license is not an annual license; it runs for a 2-year term set by the Division of Insurance.
- C) A 3-year term is not the agency license term used in Colorado.
- D) A 5-year term exceeds the 2-year agency license term.
Memory hook
Agency licenses march in pairs: two years from the month's first day.