Colorado Insurance Laws, Rules, and Regulations
Regulator and licensing
The Colorado Division of Insurance, part of the Department of Regulatory Agencies (DORA), is headed by the Commissioner of Insurance. Producers must hold a license for each line sold, be appointed by each insurer they represent, and renew on a two-year cycle with 24 hours of continuing education, including at least 3 hours of ethics. Producers must report administrative actions and criminal prosecutions to the Division, maintain records of transactions, and hold premium in a fiduciary capacity; commingling premium with personal funds is prohibited.
Market conduct and consumer protection
Colorado's unfair trade practice statutes prohibit misrepresentation, twisting, rebating (offering an inducement not stated in the policy), unfair discrimination, coercion, boycott, and unfair claim settlement practices. For most property/casualty policies, written notice of cancellation is required at least 10 days before the effective date for nonpayment of premium and at least 30 days for other cancellations, with advance notice also required for nonrenewal. Minimum auto liability limits are 25/50/15, and uninsured/underinsured motorist coverage must be offered - the insured must reject it in writing. Workers compensation is written by private carriers and Pinnacol Assurance.
Insolvency and residual markets
The Colorado Insurance Guaranty Association handles claims against insolvent property/casualty insurers, subject to statutory caps; life and health claims fall under a separate association. The Colorado FAIR Plan provides basic property insurance where the voluntary market will not.
Rule of thumb
Cancellation clock: 10 = nonpayment, 30 = everything else. Worked example: a policy cancelled for nonpayment effective June 1 must be mailed no later than May 22.