Session Laws of Colorado 2004
Second Regular Session, 64th General Assembly

 

 

 

CHAPTER 396


_______________


INSURANCE

_______________



HOUSE BILL 04-1292 [Digest]


BY REPRESENTATIVE(S) Clapp, Stengel, Cadman, Fairbank, Jahn, Lee, May M., Rose, Stafford, Welker, White, Young, Boyd, Butcher, Carroll, Cloer, Coleman, Frangas, McFadyen, Merrifield, Paccione, Romanoff, Tochtrop, Williams S., Larson, and McCluskey;

also SENATOR(S) Hagedorn, Entz, Evans, Fitz-Gerald, Groff, Grossman, Hanna, Isgar, Keller, Lamborn, Nichol, Phillips, Tapia, Teck, Tupa, Veiga, and Windels.




AN ACT


Concerning requirements of an insurer regarding factors that may negatively affect an insured's ability to obtain homeowner's insurance.



Be it enacted by the General Assembly of the State of Colorado:

 

  SECTION 1.  10-4-110.7, Colorado Revised Statutes, is amended to read:

 

  10-4-110.7.  Notice of intent prior to cancellation or nonrenewal of policies of homeowner's insurance. (1)  No insurer shall cancel or refuse to renew a policy of homeowner's insurance unless such insurer mails by first-class mail to the named insured, at the last address shown in the insurer's records, at least thirty days in advance a notice of its intended action which that specifically states the reasons for proposing to take such action pursuant to section 10-4-110; but, where cancellation is for nonpayment of premium, at least ten days' notice of cancellation accompanied by the reasons therefor shall be given.

 

  (2)  If an insurer issues a binder or a policy of insurance during a period in which the insurer assesses the risk related to an individual's real and personal property for the purposes of homeowner's insurance, the insurer shall provide notice to the potential insured that the documents are conditional and that the insurer has thirty business days commencing on the effective date of the conditional coverage to evaluate the issuance of a policy for homeowner's insurance. If the insurer refuses to issue a policy of homeowner's insurance or cancels a conditional policy that has been issued as of an effective date within this thirty-two-business-day period, the insurer shall notify the homeowner of the insurer's decision. If there is information obtained by the insurer prior to the expiration of the thirty-business-day period that an articulate and reasonable basis exists that the insurer may cancel coverage and the insurer believes that further investigation or repair of the property is necessary, the thirty-business-day period may be extended. The insurer shall complete any inspection associated with the underwriting of the new property within the thirty-day period.

 

  SECTION 2.  Part 1 of article 4 of title 10, Colorado Revised Statutes, is amended BY THE ADDITION OF THE FOLLOWING NEW SECTIONS to read:

 

  10-4-110.6.  Homeowner's insurance - definition. For the purposes of this article, "homeowner's insurance" means insurance that covers damage or loss to all types of homes, including, but not limited to, site-built homes, manufactured homes, factory-built homes, and mobile homes.

 

  10-4-116.  Credit-based insurance scoring. An insurer shall not use credit scoring for the acceptance, denial, renewal, or rating of a potential insured for insurance underwriting purposes in connection with homeowner's insurance.

 

  10-4-117.  Loss history information report - notice to insured - definition. (1)  Each insurer shall print in at least twelve-point bold-faced type, on the first page of each packet containing the insurance policy and each packet containing the renewal notice for homeowner's insurance or as a separate document:

 

  (a)  Information regarding how an insured may obtain a free copy of his or her loss history information report;

 

  (b)  A toll-free telephone number; and

 

  (c)  A website address that the insured may access to obtain the loss history information report.

 

  (2)  For the purposes of this section, "loss history information report" means a compilation of an insured's prior loss history information used by an insurer in the insured's homeowner's insurance underwriting process. Such information may include, but need not be limited to, the name, date of birth, and claim information such as date of loss, type of loss, and the amounts paid for the loss, if any, or any other information that may negatively affect an insured's rate of homeowner's insurance or the ability to obtain homeowner's insurance. A loss history information report shall include only information regarding claims made to an insurer and shall not include information regarding inquiries made to the insurer.

 

  SECTION 3.  Part 1 of article 4 of title 10, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

 

  10-4-110.8.  Homeowner's insurance - prohibited practice. (1)  An insurer may not cancel or fail to renew coverage of an insured solely because the insured inquires about coverage for homeowner's insurance and the inquiry is not related to an actual claim to the property insured.

 

  (2)  An insurer may only provide information regarding claims to any entity that compiles or monitors personal claim or loss experience shared by insurers for underwriting or rating purposes.

 

  (3)  For the purposes of this section, unless the context otherwise requires, "claim" includes a demand for payment of a benefit by the insured, the payment of a covered benefit by an insurer, a loss reserve established by the insurer, a loss adjustment expense incurred by the insurer, or a payment made to the insured.

 

  (4) For the purposes of this section, "inquiry" means a request for information regarding the terms, conditions, or coverages afforded under an insurance contract.

 

  SECTION 4.  Part 1 of article 4 of title 10, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

 

  10-4-118.  Severability. If any provision or clause of this part 1 or application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this part 1 that can be given effect without the invalid provision or application, and to this end the provisions of this title are declared to be severable.

 

  SECTION 5.  Effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution (August 4, 2004, if adjournment sine die is on May 5, 2004); except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.

 

Approved: June 4, 2004

 

----------

Capital letters indicate new material added to existing statutes; dashes through words indicate deletions from existing statutes and such material not part of act.


Session Laws of Colorado Digest of Bills General Assembly State of Colorado


Office of Legislative Legal Services, State Capitol Building, Room 091, Denver, Colorado 80203-1782
Telephone: 303-866-2045 | Facsimile: 303-866-4157
Send comments about this web page to: olls.ga@state.co.us
 

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.