Key Takeaways
- Colorado P&C producers must act in good faith and with reasonable care toward clients
- Producers must disclose material information about policies, including exclusions and limitations
- Premium handling must follow strict procedures including prompt remittance to insurers
- Records must be maintained for at least 5 years
- Colorado CE includes mandatory ethics training hours
Last updated: January 2026
Producer Conduct and Responsibilities
Colorado P&C insurance producers have legal and ethical obligations that govern their professional conduct.
Fiduciary Duties
Colorado producers owe duties to their clients:
Key Duties
| Duty | Description |
|---|---|
| Good Faith | Act honestly in all dealings |
| Disclosure | Reveal material information about policies |
| Competence | Maintain professional knowledge |
| Care | Exercise reasonable care in placing coverage |
| Confidentiality | Protect client information |
Agent vs. Broker Duties
| Type | Primary Duty To |
|---|---|
| Agent | Insurer (but fair to client) |
| Broker | Client (fiduciary duty) |
Important: Brokers owe a higher duty to clients than agents. Brokers must act in the client's best interest.
Disclosure Requirements
Colorado P&C producers must disclose:
Required Disclosures
- Coverage limits, deductibles, and premiums
- Policy exclusions and limitations
- Material terms and conditions
- Hail deductible type (especially in Colorado)
- Compensation arrangements (if asked)
- Conflicts of interest
- FAIR Plan status (if applicable)
- Surplus lines status (if applicable)
When Disclosure Required
- At time of sale or recommendation
- When material facts change
- When replacing existing coverage
- When client asks specific questions
- Annual renewal disclosure
Premium Handling
Producers must handle premiums properly:
Requirements
| Requirement | Rule |
|---|---|
| Collection | Only collect authorized amounts |
| Deposit | Promptly to insurer or trust account |
| Commingling | Prohibited with personal funds |
| Conversion | Using premiums for personal use prohibited |
| Records | Detailed records required |
| Remittance | Per agreement with insurer |
Trust Accounts
If holding premiums:
- Must be in separate trust account
- Cannot mix with personal or business funds
- Detailed records required
- Subject to DOI examination
Record Keeping
Colorado requires producers to maintain records:
Required Records
| Record Type | Retention Period |
|---|---|
| Applications | 5 years |
| Policy documents | 5 years |
| Client correspondence | 5 years |
| Premium records | 5 years |
| Claims records | 5 years |
Access to Records
- DOI can examine during investigations
- Must provide upon request
- Failure to maintain is a violation
Ethics Requirements
Continuing Education
Colorado requires ethics training:
- 3 hours of ethics each renewal period
- Part of 24-hour CE requirement
- Must be DOI-approved course
Professional Standards
- Treat all clients fairly
- Maintain professional competence
- Avoid conflicts of interest
- Protect client confidentiality
- Report illegal or unethical conduct
Test Your Knowledge
How long must Colorado P&C insurance producers retain client records?
A
B
C
D
Test Your Knowledge
Which of the following is prohibited for Colorado producers handling premiums?
A
B
C
D