S.B. 04-11 Certified capital companies - qualified distributions - limits. Prohibits certified capital companies from making qualified distributions for federal or state taxes and for professional services related to litigation challenging the validity or effect of the "Certified Capital Company Act", lobbying, or governmental relations.
APPROVED by Governor January 20, 2004
EFFECTIVE January 20, 2004
S.B. 04-21 Motor vehicles - coverage in jurisdictions outside of the United States. Eliminates the provision requiring an individual to purchase motor vehicle insurance that would indemnify against accidents in Canada or Mexico. States that this act applies to insurance policies issued or renewed on or after January 1, 2005.
APPROVED by Governor March 23, 2004
EFFECTIVE January 1, 2005
NOTE: This act was passed without a safety clause. For further explanation concerning the
effective date, see page vi of this digest.
S.B. 04-26 Motor vehicle - cancellation - hearing. Increases the time period with which the insurance commissioner must hold a hearing concerning a policyholder's protest of the cancellation of motor vehicle insurance from 30 days to 45 days after receipt of the protest. Applies the act to cancellations of motor vehicle insurance on or after July 1, 2004.
APPROVED by Governor March 23, 2004
EFFECTIVE July 1, 2004
S.B. 04-78 Administration - insurance commissioner - financial responsibility - filings - release of securities - investments - insurance companies. Authorizes certain filings related to the regulation of insurance companies to be filed with the insurance commissioner ("commissioner") and the secretary of state in an electronic format.
In statutes relating to the ascertainment of surplus of domestic insurance companies, repeals the provisions that excluded from consideration as a liability a commission, collection fee, or compensation conditioned upon the payment of an uncollected, deferred, or future premium or a bonus coupon or dividend payable or deductible under a policy of insurance or annuity or other contract and conditioned upon the payment of an uncollected, deferred, or future premium.
Eliminates outdated provisions regarding deposit and safekeeping of securities held by the division of insurance. Changes the procedure for release of securities held by the division to an insurance company from requiring a court order to providing satisfactory evidence to the commissioner that all debts, obligations, and liabilities of the insurer have been paid and discharged or that adequate provisions for the payment or discharge of such debts, obligations, or liabilities have been made.
Specifies that domestic insurance companies may invest in collateral loans secured by the pledge of investments allowed for collateral loans as provided by nationally recognized insurance statutory accounting principles, subject to certain provisions. Specifies that domestic insurance companies may invest in additional investments as nonadmitted assets under certain circumstances.
Repeals the commissioner's obligation to conduct examinations of rating organizations.
APPROVED by Governor May 21, 2004
EFFECTIVE May 21, 2004
S.B. 04-94 Health savings accounts - basic plan for small employer insurance - individual and large group insurance - state employees - PERA contributions. Eliminates the requirement that certain basic health benefit plans for small employers be offered in conjunction with a medical savings account. Specifies that a basic health benefit plan for a small employer is a plan that:
● Does not include coverage for mammograms, prostate screenings, and child supervision services and does not have the offer of coverage for mental health, hospice, or treatment of alcoholism coverage;
● Is a high deductible plan that qualifies for a health savings account; or
● Is a high deductible plan that does not include coverage for mammograms, prostate screenings, or child supervision services and does not include the offer of coverage for mental health, hospice, or treatment of alcoholism coverage that would qualify for a health savings account.
Allows any carrier authorized to conduct business in this state to offer a high deductible health plan that would qualify for a health savings account. Specifies that deductible amounts may apply to mammograms, prostate screenings, child supervision services, and prosthetic devices, if the federal department of treasury determines that these coverages are not preventive or that they have an acceptable deductible amount.
Requires the director of the department of personnel to evaluate the feasibility of offering to state employees a high deductible health plan that would qualify for a health savings account. Requires the director to report to the members of the business affairs and labor and health, environment, welfare, and institutions committees for the house of representatives and the senate no later than October 1, 2004.
Amends the definition of "salary" for the purposes of the public employees retirement association (PERA) to clarify that:
● Members who voluntarily contribute to a health savings account would be subject to PERA contributions and included in benefit calculations.
● Any paid leave contributed directly to the health savings account would not be subject to PERA contributions.
Applies to basic health benefit plans issued or renewed on or after July 1, 2004, and to health savings accounts established on or after January 1, 2004.
APPROVED by Governor May 17, 2004
EFFECTIVE July 1, 2004
S.B. 04-105 Health insurance regulation - provider networks reporting requirements - health care cooperatives - Colorado Care Health Insurance Program - small group health insurance regulation - individual health insurance coverage - health maintenance organizations - mental health benefit coverage - insurance producer continuing education requirements. Repeals the annual reporting requirement for provider networks to file statements with the insurance commissioner (commissioner) that they are not transacting insurance business. Transfers the regulatory authority for health care cooperatives from the department of health care policy and financing to the division of insurance (division). Moves the health care cooperative laws from the consumer and commercial affairs statutes to the health care coverage statutes.
Repeals the "Colorado Care Health Insurance Program", which was never funded.
Repeals outdated and conflicting language from the small group health insurance laws. Specifically:
● Repeals small group rating bands and risk adjustment provisions that have been phased out;
● Repeals selected provisions related to self-insurance by business groups of one;
● Repeals provisions that potentially conflict with the federal "Health Insurance Portability and Accountability Act";
● Consolidates small employer health insurance statutes with the general provisions governing health care coverage;
● Eliminates the rate limitations for business groups of one to the average increase for an individual health carrier's entire book of business; and
● Eliminates the annual reporting requirement for individual carriers marketing to self-employed business groups of one.
Removes an apparent conflict between provisions governing individual sickness and accident policies and guaranteed issue of individual health benefit plans.
Makes health maintenance organizations subject to all of the examination provisions for health insurers.
Conforms mental health parity coverage provisions to federal law. Harmonizes the requirements for high-deductible health benefit plans with federal law. Harmonizes state law concerning payment of benefits.
Allows an insurance producer to accumulate continuing education credits for a specified period. Requires that an insurance producer complete at least 3 of his or her mandatory 24 hours of continuing education hours in ethics courses.
APPROVED by Governor May 21, 2004
EFFECTIVE August 4, 2004
NOTE: This act was passed without a safety clause. For further explanation concerning the
effective date, see page vi of this digest.
S.B. 04-106 Premium tax credits - reallocation from certified capital companies to venture capital authority. Reduces the aggregate value of premium tax credits applicable to insurance companies' investments of certified capital in certified capital companies made after January 31, 2004, from $100 million to $50 million.
Creates a venture capital special purpose authority ("authority") and conditionally designates the authority as an enterprise under article X, section 20, of the Colorado constitution. Directs the authority to conduct a competitive process for the selection of one or more venture capital fund managers ("fund managers") to manage one or more rural venture capital funds, one or more statewide venture capital funds, and one or more distressed urban community capital funds.
Creates venture capital premium tax credits ("tax credits"), which may be claimed by insurance companies that have made a contribution to the authority and received a tax credit certificate from the authority. Requires insurance companies that wish to claim a tax credit to offer to make a contribution to the authority and to state a desired amount of tax credits. Requires the authority to issue certificates only to those insurance companies that contribute the highest percentage of their desired amount of tax credits. Directs the authority to issue tax credit certificates in the requested amount, with a total value of $50 million to be taken by insurance companies at the rate of up to $5 million per year for each of the calendar years from 2005 to 2014. If House Bill 04-1206 is declared unconstitutional, reduces the premium tax credit for investments of certified capital in certified capital companies from $50 million to zero and increases the total value of venture capital premium tax credits from $50 million to $100 million.
Directs the authority to deposit 25% of the contributions into one or more rural venture capital funds, 50% of the contributions into one or more statewide venture capital funds, and 25% of the contributions into one or more distressed urban community capital funds ("certified capital"). Directs the fund managers to use certified capital to make seed and early-stage investments in qualified businesses or qualified rural businesses ("qualified investments").
Directs the authority to regulate the fund managers' use of certified capital. Limits fund managers' maximum allowable management, operational, and other fees ("qualified distributions") to 2.5% of certified capital unless specifically authorized by the authority.
Creates a revolving enterprise fund to be used for future qualified investments. Requires fund managers to remit to the revolving fund an amount equal to 100% of certified capital and, thereafter, a negotiated percentage of certified capital and proceeds.
APPROVED by Governor March 4, 2004
EFFECTIVE March 4, 2004
S.B. 04-116 Workers' compensation - rates - effective date. Requires workers' compensation insurance and medical benefit rates to take effect on January 1. Requires applications for such rates to be filed by August 1.
APPROVED by Governor April 8, 2004
EFFECTIVE August 4, 2004
NOTE: This act was passed without a safety clause. For further explanation concerning the
effective date, see page vi of this digest.
S.B. 04-125 Motor vehicle coverage - medical payments coverage - clean claims - submission of claims - prompt payment - penalties for late payment - rules. Makes legislative findings. Defines a clean claim, for the purpose of medical payments coverage for auto insurance, as a claim where no additional information is needed by the insurer to accept or deny the claim and a claim that is submitted with a properly executed application form for benefits. Allows a claimant to submit a claim by mail, electronically, by facsimile, or by hand.
Requires an insurer to maintain current claim data for access by the commissioner of insurance (commissioner). Requires each insurer to provide a copy of its claim filing requirements to the insured upon request and to provide an application for benefits within 15 days after the receipt of a notification of loss.
Requires clean claims to be paid, denied, or settled within 30 days after electronic receipt and 45 days after receipt by any other means. If the claim requires additional information, requires the insurer to request specific information within 30 days after receipt of the claim. Requires the insured to submit such information within 30 days after receipt of the request. Allows the insurer to deny a claim for failure to timely submit the requested information. If the information is timely submitted, requires the claim to be paid, denied, or settled within 30 days after the submission. Requires all claims to paid, denied, or settled within 90 days after receipt by the insurer, except for fraudulent claims, where unusual or extenuating circumstances exist, or where further investigation is necessary.
Institutes penalties against an insurer who fails to timely pay, deny, or settle a claim.
Allows the commissioner to investigate a claim filed by a provider against an insurer when the claim is related to the improper handling or denial of benefits. Allows the commissioner to impose penalties against an insurer who has a pattern and practice of violations.
Requires an insured to notify an insurer that he or she has been injured within 30 days after the accident that caused the injury.
Allows the commissioner to promulgate rules regarding the electronic submission of claims. Prohibits an insurer from refusing to accept hard-copy claim forms. Makes the failure to adopt and implement reasonable standards for the prompt resolution of medical payment claims an unfair method of competition or deceptive act or practice in the business of insurance.
Makes specified provisions of the act effective only if House Bill 04-1234 is enacted and becomes law.
APPROVED by Governor May 27, 2004
EFFECTIVE July 1, 2004
NOTE: House Bill 04-1234 was signed by the Governor May 21, 2004.
S.B. 04-211 Individual health insurance - CoverColorado - moneys from the unclaimed property trust fund transmitted to CoverColorado - administration of the unclaimed property trust fund moneys. Eliminates the requirement that the administrator of the unclaimed property trust fund (administrator) publish notification of unclaimed property in newspapers. Establishes an electronic list of the owners of unclaimed property. Requires this electronic list to be available to the public via the world wide web. Limits the amount the administrator may use for advertisement of the unclaimed property trust program to 2% of the amount paid for claims from the previous year out of the unclaimed property trust fund (fund).
Allows a portion of the fund to be transmitted to CoverColorado to pay projected claims, administrative expenses, reserves for claims incurred but not reported, and the surplus equal to 10% of projected annual claims when the board determines the CoverColorado program is unable to meet these expenses. Requires the board of CoverColorado to submit an annual report to the state treasurer concerning the projected claims, administrative expenses, reserves for claims incurred but not reported, and the surplus equal to 10% of projected annual claims. Specifies that the report shall be substantiated by an actuarial evaluation of the program. Requires the state treasurer to report to the general assembly moneys expended from the fund to CoverColorado.
Repeals the CoverColorado cash fund (cash fund). Directs any remaining moneys in the cash fund to the program accounts of CoverColorado (program accounts). Directs moneys received from the fund to the program accounts. Requires the executive director of CoverColorado to report annually to the joint budget committee concerning the receipt and expenditure of moneys for the program. Allows the treasurer to promulgate rules concerning the timing of any transfer of moneys to CoverColorado.
APPROVED by Governor May 27, 2004
EFFECTIVE August 4, 2004
NOTE: This act was passed without a safety clause. For further explanation concerning the
effective date, see page vi of this digest.
S.B. 04-216 Property and casualty insurance - use of credit scoring - limitations - dispute resolution. Limits when an insurer offering personal lines of property and casualty insurance (homeowners and motor vehicle insurance) may use credit information to rate or underwrite. Specifies when credit information may not be used. Outlines how a consumer may receive reimbursement for an overpayment of premium based on erroneous credit information. Requires disclosure by the insurer if the insurer uses credit information to underwrite or rate an applicant or insured. If an insurer takes adverse action against an insured, requires the insurer to explain that adverse action has been taken and why the adverse action was taken.
Requires an insurer to file scoring models with the insurance commissioner. Excludes such information from being a public record upon the insurer's request.
Indemnifies a producer from liability associated with obtaining or using credit information in a manner that is consistent with the insurer's policies and applicable law. Prohibits consumer reporting agencies from selling data submitted in conjunction with an insurance inquiry.
Repeals the prohibition of the use of credit information for the determination of premiums for homeowner's insurance.
APPROVED by Governor June 4, 2004
PORTIONS EFFECTIVE June 4, 2004
PORTIONS EFFECTIVE January 1, 2005
S.B. 04-247 Certified capital companies - regulation. Reforms the regulation of certified capital companies ("CAPCOs") under the "Certified Capital Company Act" ("CAPCO act"). Redefines a "qualified business" by:
● Excluding certain types of businesses;
● Allowing an out-of-state business to commit to move into Colorado within 90 days after finalization of a contract and prohibiting follow-on investments unless the business is located in Colorado;
● Requiring submission of an affidavit from a principal officer of the business stating that the business intends to stay in Colorado for at least 3 years after the qualified investment and preventing the investment from counting toward minimum investment thresholds if the business does not stay in Colorado for at least 6 months after an investment.
Redefines a "qualified investment" by requiring qualified businesses to spend substantially all of the qualified investments in Colorado and excluding loans unless the business has received rejection letters from 2 banks and unless the state's revolving loan fund that covers the area where the business is located has declined the loan. With listed exceptions, prohibits CAPCOs from owning more than 49% of a business without approval from the Colorado economic development commission.
Requires CAPCOs to invest 100% of certified capital within 10 years and to annually report to the office of economic development ("office") the number and location of jobs created. Requires an amount of certified investments equal to at least 1/3 of statewide investments to be in seed or early stage businesses and allows statewide capital invested in rural businesses to count double with regard to only the 3-year and 5-year investment thresholds. Continues the authority of the office to regulate CAPCOs after the 10-year period, but only with regard to distributions to local nonprofit entities.
Prohibits a CAPCO from making distributions if it fails to invest 100% of certified capital. If 100% of certified capital has not been invested within 12 years, increases the local nonprofit entities' portion of future distributions to 60%. If 100% has not been invested within 16 years, increases the local nonprofit entities' portion of future distributions to 100% and allows the economic development commission to manage the CAPCO's investments.
Authorizes the office to assess an administrative fine against a CAPCO, in an amount not to exceed $100,000 pursuant to a schedule adopted by rule, for any material violation of the CAPCO act. Allows the office to inspect the records of CAPCOs and qualified businesses to determine compliance with the CAPCO act.
APPROVED by Governor May 27, 2004
EFFECTIVE May 27, 2004
H.B. 04-1008 Motor vehicle - assignment of payment - medical payments coverage. Allows a person who sustains injuries in a motor vehicle accident to assign the payment of the covered benefits pursuant to a policy of medical payments coverage to a health care provider. Sets out the requirements of the assignment. Makes an insurer responsible for making payment to the assigned provider and states that if an insurer fails to honor an assignment and makes payment to the insured, the insurer is still liable for payment to the provider if the insured does not make a timely payment of an equivalent amount.
Applies to policies of motor vehicle insurance issued or renewed on or after April 5, 2004.
APPROVED by Governor April 5, 2004
EFFECTIVE April 5, 2004
H.B. 04-1026 Motor vehicle - medical payments coverage - amounts. Requires an insurer offering medical payments coverage for the purposes of motor vehicle insurance to offer $5,000 in coverage, as well as any other amount deemed appropriate by the insurer.
Applies to medical payments coverage policies issued or renewed on or after July 1, 2004.
APPROVED by Governor April 12, 2004
EFFECTIVE July 1, 2004
H.B. 04-1079 Annuity contracts. Requires an annuity contract to allow a paid-up annuity
benefit upon written request of the contract owner. Requires a company that wants to delay
settlement of a contract for up to 6 months to obtain written permission from the
commissioner of insurance (commissioner). Specifies when an annuity contract may provide
for termination and payment of the paid-up annuity's present value.
Changes the minimum annuity interest rate to the lesser of 3% or the 5-year constant maturity treasury rate minus 1.25 to 2.25% so long as the resulting interest rate is at least 1%. Authorizes the commissioner to limit such deduction to less than 2.25% and to promulgate rules adjusting it further. Replaces the company's general authority to charge the lesser of 10% of the gross or $30 with authority to charge $50. Changes the minimum nonforfeiture amount to 87.5% of the gross considerations.
Grants the commissioner general rule-making authority regarding standard nonforfeiture regulation for individual deferred annuities.
Allows a company a year to implement the changes in the act.
APPROVED by Governor May 21, 2004
EFFECTIVE July 1, 2004
H.B. 04-1114 Property and casualty - motor vehicle. Prohibits an auto insurer from:
● Denying reimbursement to a health care provider for a covered service under a policy of medical payments coverage that is performed within the scope of practice for the health care provider; or
● Retroactively adjusting the reimbursement rate to a health care provider after 12 months.
APPROVED by Governor April 21, 2004
EFFECTIVE January 1, 2005
NOTE: This act was passed without a safety clause. For further explanation concerning the
effective date, see page vi of this digest.
H.B. 04-1117 Health - small group - carrier reentry - reduction of waiting period. Allows a one-time reduction of the 5-year waiting period to 4 years for health insurance carriers that have elected to nonrenew or discontinue coverage for small group insurance. Allows the insurance commissioner discretion to allow such reentry after an evaluation of the impact of the reentry, the state's insurance market, and consistency with federal law.
APPROVED by Governor May 28, 2004
EFFECTIVE May 28, 2004
H.B. 04-1154 Powers of the commissioner - informal investigations - use of contract services - payment of information investigation by insurer - rules. Allows the commissioner of insurance (commissioner) to contract for personal services from professionals with the necessary expertise for the purpose of performing informal investigations of insurers. Requires the commissioner to promulgate rules concerning out-of-state travel requirements, special expertise for the investigation, and what constitutes a significant pattern of complaints or a well documented allegation to require an informal investigation. Requires an insurer or producer to pay the costs of the expert at the discretion of the commissioner.
APPROVED by Governor March 8, 2004
EFFECTIVE March 8, 2004
H.B. 04-1177 Health benefit coverage - prohibited practice - kidney donors - health benefit plan rating and reserve amounts for multiple employer welfare arrangements - definition of licensed health care provider - health care availability act application to laboratories - Colorado mental health institute at Pueblo - consumer protection for health discount programs - evaluation of balance billing. Prohibits an insurer from refusing to issue or renew, or to deny, coverage based solely on a person's donation of a kidney.
Makes it a violation of the consumer protection laws for a person to sell a health discount plan without providing the following information to consumers:
● A statement that the product is not insurance;
● The availability of a list of all health care providers within the state that participate in the discount health care services program; and
● A statement that the consumer has 30 days after the date of purchase to cancel the discount plan.
Reduces the reserve amount from 30% to 25% for a self-funded multiple employer welfare arrangement (MEWA). Allows a self-funded MEWA to reduce the amount of moneys posted with the division of insurance if the MEWA obtains excess insurance in amounts determined by the insurance commissioner.
Allows either a fully insured or a self-funded MEWA to use the same rating factors as are available for small employer carriers, specifically, age, family composition, geographic location, health status, claims experience, and standard industrial code. Creates rating flexibility of 25% decreases and 10% increases for age, health status, claims experience, and standard industrial code.
Adds acupuncturists to the definition of "licensed health care provider" for the purposes of joint underwriting association for medical malpractice insurance.
Requires the insurance commissioner to conduct public hearings, in collaboration with the division of registrations, department of public health and environment, and any other state agency, concerning when a person with insurance may be balance billed for services. Requires the insurance commissioner to report to the general assembly concerning the results of such hearings. Allows agencies to promulgate rules.
Adds laboratories that are federally certified to the health care availability act for the purposes of medical malpractice litigation.
Allows the Colorado mental health institute at Pueblo to accept persons who are uninsured, when the institute has the available resources to treat such persons. Requires the office of behavioral health and housing in the department of human services to report to the general assembly concerning uninsured persons treated and the affects of treating such people on the institutes resources.
Applies the act to health benefit coverage issued to a multiple employer welfare arrangement and health discount services sold on or after the applicable effective date of the act.
APPROVED by Governor May 21, 2004
EFFECTIVE May 21, 2004
H.B. 04-1190 Certified capital companies - distributions to local nonprofit entities. Adjusts the formula pursuant to which a certified capital company must transfer a portion of its profits to certain local nonprofit entities so that, as determined by rule promulgated by the office of economic development, if the company's internal rate of return:
● Has not yet exceeded 10%, the company must transfer to the local nonprofit entities 15% of further distributions from capital or proceeds or gains from any use of capital, other than distributions for taxes, repayments of indebtedness, and equity capital paid into the company before the effective date of the act.
● Ever exceeds 10%, the company must transfer to the local nonprofit entities 20% of further distributions from capital or proceeds or gains from any use of capital above the amount required to produce the 10% return. Allows the economic development commission to accrue transfers based on distributions for taxes, repayments of indebtedness, and equity capital paid into the company before the effective date of the act for transfer to the local nonprofit entities at a later date.
Applies to actions taken by, or with respect to, certified capital companies on or after May 28, 2004.
APPROVED by Governor May 28, 2004
EFFECTIVE May 28, 2004
H.B. 04-1206 Premium tax credits - reallocation from certified capital companies to CoverColorado. Reduces the aggregate value of premium tax credits applicable to insurance companies' investments of certified capital made after January 31, 2004, from $100 million to $50 million. Offsets the net revenue gains directly caused by such reduction by creating $50 million in premium tax credits for insurance companies' contributions to CoverColorado. Allows an assessment against insurance companies for the CoverColorado program to occur only when other revenues, including the contributions made pursuant to the tax credit, are insufficient. If Senate Bill 04-106 is declared unconstitutional, reduces the premium tax credit for investments of certified capital from $50 million to zero and increases the aggregate value of CoverColorado tax credits from $50 million to $100 million.
APPROVED by Governor March 4, 2004
EFFECTIVE March 4, 2004
H.B. 04-1210 Motor vehicle insurance - medical payments coverage - rules. Requires the insurance commissioner to promulgate any necessary rules related to the administration of medical payments coverage and coordination of coverage related to motor vehicle insurance. Repeals such rule-making authority on July 1, 2005.
APPROVED by Governor May 28, 2004
EFFECTIVE May 28, 2004
H.B. 04-1232 Property and casualty - motor vehicle - enhanced coverages - rules. Prohibits an insurer or a producer from automatically adding optional or enhanced coverages to a consumer's policy of motor vehicle insurance without explicit consent from the consumer. Requires the insurer or producer to maintain evidence of the insured's consent to coverage for 3 years. Specifies what "adequate evidence" of consent means. Allows the insurance commissioner to promulgate rules concerning suitability of enhanced coverages.
Applies to policies of motor vehicle insurance offered on or after July 1, 2004.
APPROVED by Governor April 13, 2004
EFFECTIVE July 1, 2004
H.B. 04-1234 Property and casualty - motor vehicle coverage - rules - claims practices for property damage - operator's policy. Prohibits a property and casualty insurer from refusing to provide benefits to an insured who is a volunteer for a fire department when the insured is responding to an emergency. Requires a property and casualty insurer to:
● Provide payments for title fees, sales tax, and any other registration fees or charges associated with the total loss of a motor vehicle;
● Clearly disclose the coverage provided for the towing and storage of a motor vehicle and specifically advise an insured of additional expenses that may be incurred by the insured for towing and storage; and
● Create a fair and consistent methodology for evaluation of total loss of a motor vehicle.
Allows the insurance commissioner to promulgate rules related to motor vehicle insurance, including rules concerning unfair and deceptive trade practices and specifying when payments for any applicable replacement motor vehicle must be made by an insurer. Corrects references to self-insurers for the purpose of motor vehicle insurance. Recreates prior provisions allowing issuance of an operator's motor vehicle insurance policy.
Makes specified provisions of the act contingent on the passage of Senate Bill 04-125.
APPROVED by Governor May 21, 2004
EFFECTIVE May 21, 2004
NOTE: Senate Bill 04-125 was signed by the Governor May 27, 2004.
H.B. 04-1236 Property and casualty insurance - homeowner's - binders - notice of cancellation of binder - loss history - underwriting methodologies. Requires an insurer offering homeowner's insurance to provide notice to an applicant:
● Of a waiting period during which the insurer evaluates the property to be insured, of a decision to not issue a homeowner's insurance policy or to cancel a conditional policy, and of a decision to extend such waiting period in order to further evaluate the property;
● If specific underwriting criteria used by the insurer, other than paid claims on the property, adversely affected the applicant; and
● If the insurer uses credit scoring, claims history of the property, or claims history of the applicant in determining whether to insurer the applicant's property.
Requires an insurer offering homeowner's insurance to file with the insurance commissioner its underwriting methodologies.
Requires an insurer to provide to an insured information regarding how to obtain a free loss history information report.
Prohibits an insurer from considering insurance coverage inquiries when setting rates or determining eligibility for homeowner's insurance. Prohibits an insurer from providing information regarding claims to an entity other than one that compiles or monitors personal claim or loss experience shared by insurers for underwriting or rating purposes.
Applies to homeowner's insurance policies issued or renewed on or after January 1, 2005.
APPROVED by Governor June 4, 2004
EFFECTIVE January 1, 2005
NOTE: This act was passed without a safety clause. For further explanation concerning the
effective date, see page vi of this digest.
H.B. 04-1292 Property and casualty insurance - homeowner's insurance - notice of conditional binder or policy required - notice of cancellation required - credit scoring prohibited - availability of loss history information report - cancellation and nonrenewal prohibited for coverage inquiries. Requires an insurer to provide notice to a potential insured that a binder or policy for homeowner's insurance is conditional for 30 days if the binder or policy is issued while assessing the risk related to the property. Requires the insurer to notify the potential insured if the conditional binder or policy is cancelled. Allows for extension of the 30-day period if there is an articulate and reasonable basis for cancellation of coverage and further investigation or repair to the property is necessary.
Prohibits an insurer from using credit scoring for the acceptance, denial, renewal, or rating of a potential insured for insurance underwriting purposes in connection with homeowner's insurance. Requires an insurer to provide to an insured information regarding how to obtain a free loss history information report.
Prohibits an insurer from considering insurance coverage inquiries when setting rates or determining eligibility for homeowner's insurance. Prohibits an insurer from providing information regarding claims to an entity other than one that compiles or monitors personal claim or loss experience shared by insurers for underwriting or rating purposes.
APPROVED by Governor June 4, 2004
EFFECTIVE August 4, 2004
NOTE: This act was passed without a safety clause. For further explanation concerning the
effective date, see page vi of this digest.
H.B. 04-1390 Health care coverage - insurer requirement - disclosure of cancer screening coverages. Requires each health insurer to include with the required Colorado health benefit plan description form informational materials specifying a health plan's cancer screening coverages and the respective parameters.
APPROVED by Governor May 21, 2004
EFFECTIVE May 21, 2004
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The information on this page is presented as an informational service only and should not be relied upon as an official record of action or legal position of the State of Colorado, the Colorado General Assembly, or the Office of Legislative Legal Services.