Which statement is NOT TRUE?

Which statement is NOT TRUE?

• A. NOTIFICATION OF 'GAP COVERAGE' SHALL BE CLEAR AND CONSPICUOUS, REASONABLY UNDERSTANDABLE AND DESIGNED TO CALL ATTENTION TO ITS NATURE AND SIGNIFICANCE DETERMINATION OF INSURABILITY SECTION DOES NOT APPLY TO A COMPANY ASSUMING NO PRIMARY LIABILITY IN A CONTRACT OF REINSURANCE
• B. FAILURE TO PROVIDE STATEMENTS REQUIRED BY C.R.S. 10-11-122 WILL INVALIDATE THE COMMITMENT
• C. A TITLE ENTITY MUST ALWAYS HAVE A CERTIFICATE OF TAXES DUE OR OTHER EQUIVALENT DOCUMENTATION FROM THE COUNTY TREASURER OR AUTHORIZED
• D. AGENT TO ISSUE A TITLE POLICY

Answer: (B)

The key idea here is understanding how statements required by law affect a title commitment. A commitment isn’t automatically voided just because certain statutory statements weren’t provided; missing disclosures under C.R.S. 10-11-122 typically create a deficiency that must be cured or addressed, but they do not by themselves render the commitment invalid. In other words, failure to furnish those specific statements does not automatically destroy the enforceability of the commitment; remedies or corrections are usually available and the commitment can remain in force pending any required cure. That’s why the statement claiming that not providing statements required by that statute will invalidate the commitment is not true. The other items describe common, legitimate requirements in Colorado title practice: notices about gap coverage must be clear and conspicuous, and certain insurability determinations may not apply in all reinsurance scenarios; a title entity needs tax-due certificates or equivalent documentation from the county treasurer; and an authorized agent can issue a title policy.

The key idea here is understanding how statements required by law affect a title commitment. A commitment isn’t automatically voided just because certain statutory statements weren’t provided; missing disclosures under C.R.S. 10-11-122 typically create a deficiency that must be cured or addressed, but they do not by themselves render the commitment invalid. In other words, failure to furnish those specific statements does not automatically destroy the enforceability of the commitment; remedies or corrections are usually available and the commitment can remain in force pending any required cure.

That’s why the statement claiming that not providing statements required by that statute will invalidate the commitment is not true. The other items describe common, legitimate requirements in Colorado title practice: notices about gap coverage must be clear and conspicuous, and certain insurability determinations may not apply in all reinsurance scenarios; a title entity needs tax-due certificates or equivalent documentation from the county treasurer; and an authorized agent can issue a title policy.