Colorado Life Insurance
- Find out about Colorado life insurance laws and regulations, and discover the rules insurance providers must follow when issuing policies and paying claims.
Life insurance is a way to create a financial safety net for your loved ones in the event of your passing. If you're considering buying life insurance in Colorado, take time to review the relevant laws. When you understand your rights and responsibilities, it's easier to make an informed decision.
Colorado Life Insurance Rules and Specifics
The life insurance industry in Colorado is monitored by the Division of Insurance (DOI), which is a part of the Colorado Department of Regulatory Agencies. The DOI enforces the laws set out in Title 10 of the Colorado Revised Statutes (CRS).
According to state law, all insurance companies in Colorado are required to provide the following:
- 15-day free look period: After you purchase a life insurance policy in Colorado, state law gives you 15 days to change your mind. If you decide to cancel your policy for any reason within this period, the company must return your premium. For variable policies, you're entitled to the current value of the policy and any fees the company took out.
- 1-month grace period: After you've made a full year of payments on your policy, Colorado CRS 10-7-102 grants you a grace period of a month. The law specifies that the insurer's definition of a month cannot be less than 30 days. If you're late on a payment after the one-year mark, the insurer must continue to provide coverage throughout the grace period. As long as you pay the premium during that time, your policy will remain active. If you die during an active grace period, the company can take the remainder of the year's premiums out of the policy's payout.
- Foreign travel: Colorado life insurance companies are not allowed to refuse or limit coverage to you based only on your history of or potential for foreign travel. However, they can exclude, limit or charge more for coverage if that travel includes activities that have been proven to increase your risk. Companies must be able to provide a minimum of one reliable, independently operated source to back up their decision.
Life Insurance Resources in Colorado
Whether you're buying a new life insurance policy or seeking help with existing coverage, these Colorado organizations are a good place to start:
Colorado Life and Health Insurance Protection Association
The Colorado Life and Health Insurance Protection Association can help you if your life insurance company becomes insolvent. You must be a Colorado resident to qualify for financial assistance, which is capped at $300,000.
Colorado Insurance Guaranty Association (CIGA)
CIGA is another consumer-protection organization. If your insurance comes from one of CIGA's members, the association will process and pay out your claim.
Colorado Division of Insurance (DOI)
The Colorado DOI publishes educational resources to help you understand the types of life insurance policies. DOI officials also answer questions and respond to consumer complaints.