§ 10-4-110.7 — Cancellation or nonrenewal - homeowner's insurance policies

Colorado § 10-4-110.7

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Property and Casualty Insurance

Text

(1) (a) If an insurer issues a binder 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 only a binder and subject to cancellation.

(b) The commissioner may promulgate a rule or issue a bulletin concerning
disclosure requirements for a binder of insurance for homeowner's insurance.

(2) (a) If an insurer uses underwriting criteria based on an individual's credit
score, the claims history of the property, or the claims history of the applicant, the
insurer shall notify the applicant of the use of such criteria during the application
process.

(b) If an insurer uses claims experience for the property and such claims
history results in an adverse action to the applicant or policyholder, the insurer
shall disclose to the applicant or policyholder the specific claim information that
resulted in the adverse action.

(3) An insurer shall not 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 sixty days in advance, a notice
of its intended action that specifically states the reasons for proposing to take such
action; except that, where cancellation is for nonpayment of premium, the insurer
shall provide at least ten days' notice of cancellation accompanied by the reasons
for taking such action.

(4) An insurer offering homeowner's insurance in this state shall file with the
commissioner the underwriting methodologies used by the insurer. Such
underwriting methodologies are not public records and are exempted from article
72 of title 24, C.R.S., and are proprietary and not subject to public examination;
except that the commissioner may use information from the underwriting
methodologies filed pursuant to this subsection (4) that does not identify a specific
insurer for consumer information publications concerning homeowner's insurance.

(5) 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-business-day period, the insurer shall notify the homeowner of the insurer's
decision. If, prior to the expiration of the thirty-business-day period, the insurer
obtains information showing an articulable and reasonable basis on which the
insurer might be justified in canceling 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-business-day period.

Legislative History

Source: L. 87: Entire section added, p. 427, � 5, effective May 1. L. 2004: Entire section amended, p. 1971, � 1, effective August 4; entire section amended, p. 1980, � 1, effective January 1, 2005. L. 2023: (3) amended, (HB 23-1174), ch. 168, p. 820, � 2, effective August 7.