Colorado § 10-3-1105 Favored agent or insurer - coercion of debtors

Colorado Statutes

§ 10-3-1105 — Favored agent or insurer - coercion of debtors

Colorado § 10-3-1105

Title 10Insurance

Art.Regulation of Insurance Companies

This text of Colorado § 10-3-1105 (Favored agent or insurer - coercion of debtors) is published on Counsel Stack Legal Research, covering Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Colo. Rev. Stat. § 10-3-1105 (2026).

Text

(1)No person may:

(a)Require, as a condition precedent to the lending of money, or extension of credit, or to entering into any lease transaction, or any renewal of any of them, that the person to whom such money or credit is extended, or the lessee, or the person whose obligation the creditor is to acquire or finance negotiate any policy or contract of insurance through a particular insurer or group of insurers or agent or broker or group of agents or brokers;

(b)Unreasonably disapprove the insurance policy provided by a borrower or lessee for the protection of the property securing the credit, or lien, or which is the subject of the lease. For the purposes of this paragraph (b), disapproval shall be deemed unreasonable if it is not based solely on reasonable standards unifo

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(1) No person
may:

(a) Require, as a condition precedent to the lending of money, or extension of
credit, or to entering into any lease transaction, or any renewal of any of them, that
the person to whom such money or credit is extended, or the lessee, or the person
whose obligation the creditor is to acquire or finance negotiate any policy or
contract of insurance through a particular insurer or group of insurers or agent or
broker or group of agents or brokers;

(b) Unreasonably disapprove the insurance policy provided by a borrower or
lessee for the protection of the property securing the credit, or lien, or which is the
subject of the lease. For the purposes of this paragraph (b), disapproval shall be
deemed unreasonable if it is not based solely on reasonable standards uniformly
applied, relating to the extent of coverage required and the financial soundness and
the services of an insurer. Such standards shall not discriminate against any
particular type of insurer, nor shall such standards call for the disapproval of an
insurance policy because such policy contains coverage in addition to that required;
or

(c) Require directly or indirectly that any borrower, mortgagor, purchaser,
insurer, broker, or agent pay a separate charge in connection with the handling of
any insurance policy required as security for a loan on real estate, or pay a separate
charge to substitute the insurance policy of one insurer for that of another. The
provisions of this paragraph (c) shall not apply to the interest which may be charged
on premium loans or premium advancements in accordance with the security
instrument.

(2) The commissioner may investigate the affairs of any person to whom this
section applies to determine whether such person has violated the provisions of this
section. If a violation of this section is found, the person in violation shall be subject
to the same procedures and penalties as are applicable to other provisions of this
part 11.

(3) For the purposes of this section, person includes any individual,
corporation, association, partnership, or other legal entity.