Colorado Life Insurance (CO)
The state of Colorado has laws and regulations in place to help financially protect both consumers and insurers.
Colorado Life Insurance Laws Protecting Consumers (CO)
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Title 7 of the Code of Colorado: Protects life insurance consumers, their claims and their policies in the state of Colorado. Its purpose is set to regulate the insurance industry.
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One Month Grace Period: This gives life insurance customers 30 days from the payment due date to make the necessary payment
without worry of their policy being canceled by the insurer.
- The insurer pays interest on a death benefit from the proven date of death until the settlement is paid. If the settlement has
not been paid by the insurer with thirty days of receiving proof of death, the interest rate will increase, all payable to the life insurance policy’s beneficiary.
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Colorado Life Insurance Regulations Protecting Insurers (CO)
Colorado’s insurance laws also extend some protections to insurance companies to defend them from fraudulent acts. Some of these laws are as follows:
- Within the first two years of a policy’s effective date, the
insurance company may terminate a policy if any misleading or false statements are found on the original application for insurance. If a misstatement of age is found, the policy’s benefits
will change to reflect the appropriate age.
Additional Colorado Life Insurance Regulations (CO)
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Colorado Life & Health Insurance Protection Association: Covers the majority of life
insurance policy holders in Colorado, put in place in the unfortunate event that your insurance company was to become insolvent.
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There are, however, limitations on proceed reimbursements. A single death benefit cannot exceed $300,000, no matter how many separate policies are purchased.
In order to qualify for this protection, your life insurance policy premiums must be paid up to date, and your insurance company must be licensed in the state of Colorado.
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Life-Insurance-Info.us is not a life insurance broker or carrier, and cannot issue life insurance policies. This site provides free information on insurance providers and coverage options. We are not associated with the companies profiled on Life-Insurance-Info.us and we make no representation, express or implied, that you will receive a quote from a specific company profiled herein. Products and policies may not be available in all states, and product and policy information is subject to change without notice. Please contact the insurance company directly to answer your policy inquiries.
Last Updated: June 16, 2009
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