Under Colorado's insurance fraud statute, what must every licensed insurer maintain to combat insurance fraud?
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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 that includes procedures to prevent, detect, and investigate fraud, education of employees and investigators, and reporting of suspected fraud to law enforcement. The plans are proprietary and are not public records, so an insurer in Denver keeps its plan confidential while still operating it actively. A producer who understands the plan requirement can explain to an insurer client why fraud referrals are handled through internal procedures rather than public channels.
Why the other options are wrong
- B) Anti-fraud plans are expressly proprietary and not public records, so no policyholder-accessible registry exists or is required.
- C) The duty to maintain an anti-fraud plan applies to every licensed insurer; there is no claim-volume threshold that triggers the requirement.
- D) The fraud statute requires a plan, education, and law-enforcement reporting; it does not impose any bonding requirement on insurers.
Memory hook
Every Colorado insurer keeps a fraud plan: prevent, detect, investigate, educate, report — and keep it private.