§ 10-7-103 — Life insurance policies - prohibition

Colorado § 10-7-103

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Life Insurance

Text

(1) It is unlawful for any
foreign or domestic life insurance company to issue or deliver in this state any life
insurance policy if it contains any of the following provisions:

(a) A provision for forfeiture of the policy for failure to repay any loan on the
policy, or to pay interest on such loan while the total indebtedness on the policy is
less than the loan value thereof, or any provision for forfeiture for failure to repay
any such loan or to pay interest thereon, unless such provision contains a
stipulation that no such forfeiture shall occur until at least one month after notice
has been mailed by the company to the last-known address of the insured and of
the assignee, if any;

(b) A provision limiting the time within which any action may be commenced
to less than five years after the cause of action accrues;

(c) A provision by which the policy purports to be issued or to take effect
more than one year before the original application for the insurance was made, if
thereby the assured would rate at an age not more than one year younger than his
age at date when application was made, according to his age at nearest birthday.

(2) A life insurance company doing business in Colorado may not refuse to
insure, refuse to continue to insure, limit the amount or extent or kind of coverage
available to an individual, or charge an individual a different rate for the same
coverage solely for reasons associated with an applicant's or insured's past or
future lawful foreign travel. Nothing in this subsection (2) shall prohibit a life
insurer from excluding or limiting coverage of specific lawful travel, or charging a
differential rate for such coverage, when bona fide differences in risk or exposure
have been substantiated by the use of relevant data from at least one independent
reliable source, including statistical or other mathematical analysis of available
data that establishes a material variation in actual or reasonably anticipated
experience that correlates to the risk of specific lawful travel. Travel advisories
issued by the United States department of state shall not qualify as the sole source
of data for purposes of this subsection (2). Each insurer shall maintain the data and
documents that support any such differences and shall make the data and
documents available upon request by the commissioner.

(3) A life insurance company doing business in Colorado shall not deny or
alter benefits otherwise available to an individual with a terminal disease based on
the availability of medical aid-in-dying pursuant to article 48 of title 25.

Legislative History

Source: L. 13: p. 351, � 44. C.L. � 2517. CSA: C. 87, � 58. CRS 53: � 72-3-5. C.R.S. 1963: � 72-3-5. L. 2006: (2) added, p. 710, � 1, effective July 1. L. 2024: (3) added, (SB 24-068), ch. 406, p. 2798, � 19, effective August 7.