(1)Except in
accordance with the provisions of this part 6, an insurer shall not cancel or fail to
renew a policy of insurance that complies with this part 6, issued in this state, as to
any resident of the household of the named insured, for any reason other than
nonpayment of premium, or increase a premium for any coverage on any such policy
unless the increase is part of a general increase in premiums filed with the
commissioner and does not result from a reclassification of the insured, or reduce
the coverage under any such policy unless the reduction is part of a general
reduction in coverage filed with the commissioner or to satisfy the requirements of
other sections of this part 6.
(2)An insurer intending to take an action subject to this section shall, on or
before the
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(1) Except in
accordance with the provisions of this part 6, an insurer shall not cancel or fail to
renew a policy of insurance that complies with this part 6, issued in this state, as to
any resident of the household of the named insured, for any reason other than
nonpayment of premium, or increase a premium for any coverage on any such policy
unless the increase is part of a general increase in premiums filed with the
commissioner and does not result from a reclassification of the insured, or reduce
the coverage under any such policy unless the reduction is part of a general
reduction in coverage filed with the commissioner or to satisfy the requirements of
other sections of this part 6.
(2) An insurer intending to take an action subject to this section shall, on or
before the thirtieth day before the effective date of the intended action, send
written notice by United States mail of its intended action to the insured at the
insured's last-known address. The insurer may include the notice of the intended
action in the renewal documents, nonrenewal, or cancellation notice provided to the
policyholder, as applicable. The notice must state in clear and specific terms, on a
form for which the insurer has filed a certification with the commissioner that such
notice form conforms to Colorado law and any rules promulgated by the
commissioner:
(a) The proposed action to be taken, including, if the action is an increase in
premium or reduction in coverage, the amount of increase and the type of coverage
to which it is applicable or the type of coverage reduced and the extent of the
reduction;
(b) The proposed effective date of the action;
(c) The insurer's actual reasons for proposing to take such action. The
statement of reasons shall be sufficiently clear and specific so that a person of
average intelligence can identify the basis for the insurer's decision without making
further inquiry. Generalized terms such as personal habits, living conditions,
poor morale, or violation or accident record shall not suffice to meet the
requirements of this subsection (2).
(d) If there is coupled with the notice an offer to continue or renew the policy
in accordance with this section, the name of the person or persons to be excluded
from coverage and what the premium would be if the policy is continued or renewed
with such person or persons excluded from coverage;
(e) The right of the insured to replace the insurance through an assigned risk
plan;
(f) The right of the insured to file a complaint with the division of insurance
regarding the action that is the subject of the notice.
(g) and (h) Repealed.
(3) Any statement of reasons contained in the notice given pursuant to
paragraph (c) of subsection (2) of this section shall be privileged and shall not
constitute grounds for any action against the insurer or its representatives or any
person who in good faith furnished to the insurer the information upon which the
statement is based.
(4) to (8) Repealed.
(9) This section does not apply to an insurance policy or coverage that has
been in effect less than sixty days at the time the insurer mails or delivers the
notice of cancellation, nonrenewal, or reclassification, unless it is a renewal policy.