Which of the following is an acceptable practice in Colorado's insurance industry?

Encouraging consumers to compare different policies is an acceptable practice in Colorado's insurance industry because it promotes informed decision-making among consumers. By encouraging comparisons, insurance producers empower clients to evaluate multiple options based on coverage, pricing, and benefits, leading to better-suited choices for their personal needs. This practice aligns with ethical standards in insurance, fostering transparency and consumer confidence in the insurance marketplace.

In contrast, offering rewards for policy purchases could raise concerns about inducements that might mislead consumers rather than focusing on the value of the policy itself. Denying claims without thorough investigation contradicts the principle of fairness and duty to act in good faith, which is critical in the claims process. Soliciting clients without a license is illegal, as it violates regulatory requirements for licensing in the insurance industry, ensuring that all agents meet specific qualifications and adhere to industry standards.