Colorado New Directive for Clients

To Our Valued Clients:

The Colorado Department of Regulatory Agencies – Division of Insurance has taken steps to protect those affected by COVID-19.  The Division of Insurance propounded Bulletin No. B-5.38 which directs all insurers issuing coverage to personal and commercial policyholders to make “reasonable accommodations” to prevent policyholders from losing coverage.  Specifically, the Division of Insurance has mandated that insurers should:

  • Provide an extension of premium grace periods.
  • Waive all late payment fees.
  • Refuse to cancel any policy for non-payment.
  • Defer any non-renewal underwriting actions; and
  • Provide a continuation of coverage for any expiring policy. 

The Division of Insurance has further mandated that these accommodations should be “available to the policyholder, and clearly explained on the insurer’s website.”  These accommodations are to be in effect until the bulletin is rescinded or until the Colorado Department of Public Health and Environment Public Health Orders regarding COVID-19 are no longer in effect.

The Division of Insurance will be verifying that insurers comply with the bulletin and will be requesting information regarding compliance with the bulletin, including the web address of the notice to policyholders and the number of accommodations made or rejected by the insurer. The directive can be viewed here.

In a separate Emergency Regulation, the Division of Insurance has ordered that employees shall be covered by their own personal auto insurance if they are delivering food for an employer. This will preclude enforcement of any business or commercial exclusion in a Policy for the duration of the COVID-19 emergency.

As always, we stand ready to assist our valuable clients with their coverage issues or regulatory compliance in this difficult time.


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