Colorado Life Insurance
Colorado life insurance laws deal primarily with claims. However, familiarizing yourself with the basic state regulations will still help you make more informed coverage decisions.
This page:
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Briefly describes Colorado life insurance regulations.
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Explains the coverage of the Colorado Protection Association.
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Links to more information about life insurance in Colorado
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Colorado life insurance rights and regulations
The insurance industry in the State of Colorado is regulated under Title 7 of the Code of Colorado.
Under this title, claims procedures and policy requirements are regulated by the state in order to protect you, the consumer.
One such protection is guaranteed by the mandatory one-month grace period on late premium payments. A policyholder in Colorado is allowed a month to bring her account current before a life insurance policy can be cancelled.
Colorado law also requires that insurers pay interest on death benefit proceeds from the date of death until the claim is settled. If the insurance company fails to pay the proceeds within 30 days of receiving proof of death, the rate of interest increases.
However, Colorado law also extends some protections to insurers. For two years after a life insurance policy's effective date, the provider may cancel the policy if they discover any misstatement on the policy application. If there is a misstatement of age on the policy, the death benefit proceeds will be reduced to reflect the correct age.
Coverage can also be denied in the case of the policyholder's death by suicide (during the first policy year). This provision does not apply to death by accident. Sidebar
If you are ready to apply for a Colorado term life insurance policy, or if you just want a quick online quote, visit Efinancial now.
If you are not sure about what type of life coverage you want, you can also try InsureME. They will put you in touch with agents who can answer any questions that you might have.
The Colorado Life Insurance Protection Association
Most Colorado life insurance policyholders are covered under the Colorado Life and Health Insurance Protection Association. This organization helps protect policyholders in cases of insurance company insolvency.
However, there are some restrictions. Reimbursement for lost death benefit proceeds may not exceed $300,000 per insured individual. This limit applies even in the case of multiple policies totalling more than $300,000.
To qualify for this protection, your insurance company must be licensed in the state of Colorado. You can check a company's status with the Colorado Department of Insurance by calling 303-849-7499. Sidebar
Apply for a quote with confidence at Efinancial
(for Colorado term life insurance), or InsureME.
Your insurer will be licensed in Colorado.
More CO life insurance help
If you want more help getting the best value on your CO life insurance policy, start with our guide to term life insurance or sign-up for our free life insurance course (see below).
To find out more about CO life insurance laws and regulations, visit the state's official website at the Colorado Department of Regulatory Agencies, Insurance Division.
Learn even more:Getting the lowest possible premium on your life insurance is almost like an art form. There are many variables to consider, and to get the right balance of term length, benefit amounts, and policy riders and illustrations, you need to take a careful step-by-step approach to the buying process.
Our free life insurance course is designed to help you do just that.
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