State RegulationsCO specificDifficulty 1/5
Under the Colorado insurance fraud statute, how must the statutory fraud warning appear on printed applications, policies, and claim forms?
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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 the statutory fraud warning to appear conspicuously on all printed applications for insurance, on all policies, and on all claim forms. The warning exists so that every applicant and claimant sees it, which is why hiding it in fine print or delivering it only orally does not satisfy the statute.
Why the other options are wrong
- B) Fine print on a single page is the opposite of conspicuous; the statute requires the warning on applications and claim forms as well as policies.
- C) The warning is required on all printed applications, policies, and claim forms, not only those tied to disputed losses.
- D) The statute requires the warning in printed form on the documents themselves; an oral statement does not meet the requirement.
Memory hook
The fraud warning must be loud and proud — conspicuous on every application, policy, and claim form.