Colorado Life Insurance Law
Grace period for group life insurance
31 days
Producers must complete a _____-hour annuity stability training course.
4
A producer must remit premiums to insurer within ____ days after receipt.
45
Education documents must be retained for ____ years
5
Replacing insurer must notify any other existing insurers within _____ business days of receiving an application.
5 days
Commissioner must examine every licensed insurer at least once every
5 years
Insurers must maintain files of all advertisements for at least _____ years (or until next DOI examination, whichever is longer).
5 years
Replacing insurers must retain sales material, illustrations, signed statements (including Notice Regarding Replacement) for at least _____ years after the policy expires or is terminated.
5 years
Prelicensing Education Requirements
50 hours life insurance 50 hours accidental and health insurance 100 hours life, accident, and health insurance 50 hours property and casualty Minimum 3 hours ethics per 50 hour course
First-party property and casualty claims must be paid by insurers within ____ days of receipt unless disputed, unfair claims practices.
60
Controlled Business
Insurance written in licensee's own interests or interests of spouse or employer, if total during 12 month period premiums on controlled business exceed the total premiums on all other business, Commissioner will not grant or renew any license used for controlled business
Insurance Producer
Person who solicits, negotiates, effects, procures, delivers, renews, continues, or binds insurance policies for risks in CO, membership in certain health care prepayment plans, or membership in certain health care plans
Rebating
Practice of giving something of value to a prospective insurance applicant in exchange for purchase of policy, considered unfair method of competition
Requests for Information
Response to any Division inquiry must be within 20 calendar days from date of inquiry -Inquiries during market conduct or financial examination within 10 calendar days
Replacement Forms
When new policy is written to take place of an already in force policy -Notice Regarding Replacement - must be given to applicant by producer prior to taking application, both sign notice
Emergency Cease and Desist Order
Without a hearing if an unauthorized person is engaged in insurance business without license or in violation of a rule and appears to be fraudulent, creates immediate danger, or is about to cause significant public injury
In no beneficiary, the insurer may pay up to ____ to anyone who incurs verifiable funeral expenses.
$5,000
Producer's license continually renewed as long as proper fees and continuing education requirements are met for how long?
2 years
Division of Insurance records and requests inquiries must be answered within ____ calendar days.
20
Total continuing education (CE) hours required for each two year licensing period
24 hours -3 hours ethics -18 hours in lines which licensed -3 hours homeowners for property and personal
Insurer must give a policyholder _____ days notice before an individual life insurance policy will lapse du e to nonpayment of premium.
25
A producer must return all premium to the insured within ____ days.
30
The Commissioner must be notified from insurer within ____ days after date of producer appointment termination
30
The producer must file a response with the Commissioner within ____ days of receiving notice
30
Any administrative actions or criminal prosecutions must be reported to Commissioner within
30 days
Change of address (resident producers) must be reported in writing within
30 days
Free-look for life insurance replacements
30 days
Unfair Trade Practices
Unfair method of competition or unfair deceptive act
Non-resident producers moving from one state to another must file change in address and provide certification from new resident state within
30 days
Penalty for any person applying for/holding and insurance producer license found to have violated insurance laws or rules of state or any other state
Civil penalty of up to $3,000 per violation
Commissioner's Duties
-Maintaining records that insurers are required by law to file in Commissioner's office, annual report by March 1 -Requiring domestic insurers to keep adequate records and complies with the law -Certificate of authority- insurer's license to transact insurance business, expires on June 30 and renewed annually -Investigating violations of insurance laws and presenting findings -Transmitting funds collected by Division of Insurance to state Department of Treasury -Oversee operation of electronic data interchange projects for billing and health benefit coverage's -Adopting rules and regulations -Determining whether rates are excessive, inadequate, or unfairly discriminatory
Producer license is not required of fraternal benefit society representative if did not receive sales compensation and
-Preceding calendar year, representative sold society life insurance contracts with face value of $50,000 or less -Sold any other kind of insurance on behalf of society to 25 or fewer individuals and received no compensation
After the policy has been in force ____ year, the insurer may not deny death benefits (other than accidental death) due to suicide.
1
Requests for information during a market conduct or financial examination must be responded to within ____ days.
10
Up to a ____ month extension may be granted by Commissioner
12
Maximum number of hours that may be carried over to next CE period
12 hours
An insurer has an additional ____ days to notify the producer
15 (45 total)
Free-look for life insurance
15 days
Minimum age for license
18
Insurance Commissioner
Appointed by and serves at the will of the governor, hires employees to help carry out duties, deputy commissioner steps in when commissioner is out
Investigation of Application for Insurance Producer License
Commissioner can examine/investigate person who is applying for license to determine if person has violated insurance laws or rules of the state or any other state
Investigating Possible Violations
Commissioner is allowed free access to books and documents relating to insurer's business and may subpoena witnesses and administer oaths during an investigation
Commissioner Examinations
Conduct formal financial examination of every insurer license in CO at least every 5 years, examinations outside of the state will be paid by insurance company, refusal to comply license could be suspended, revoked, denied, or non-renewed
Rate Regulation Laws
Created to protect public by ensuring insurance rates are not excessive, inadequate, or unfairly discriminatory -Prohibit price fixing agreements (anti-competitive behavior) -Provide rates that are responsive to competitive market conditions -Improve availability and reliability of insurance
A license is deemed to be used for controlled business if, during any 12 month period, the total premiums on controlled business ____ the total premiums on all other business.
Exceed
Conversion Rights for Group Policies
If group policy terminates insurance of any class, each insured in that class who has been insured for at least 5 years before termination is entitled to an individual life policy
Fraudulent Claims and Arson Information Reporting Act
Insurer must maintain antifraud plan that outlines specific procedures to prevent, detect, investigate fraud, educate employees about fraud detection and company's plan, hire one or more fraud investigators, and report suspected or actual insurance fraud
Payment of Benefits
Insurers must pay first party claims under property and casualty policies within 60 days of receiving valid and complete claim -$20 penalty on claims under $100 -8% annual interest on claims more than $100 from date of claim until date claim is paid
Interest on Proceeds
Insurers pay interest on death benefits, any other life insurance policy benefits withh have interest rate of 2% or more above federal discount rate when remain unpaid more than 30 days after insurer receives insured's request for payment
Certificate of authority expires on
June 30 each year, renew annually
Defamation
Making oral or written statements that are false, maliciously critical, or derogatory to financial condition of insurer or intended to injure anyone in insurance business -Misdemeanor -Fine $500, imprisonment 12 months, or both
Violation of Cease and Desist Order
Max $500 per violation (individual) Max $10,000 per violation (insurer)
False Testimony
Max of $5,000, 3 months imprisonment, or both
Falsifying Books or Documents
Max of $5,000, between 2 and 12 months imprisonment, or both
Unfair Trade Practices and Methods of Competition- Cease and Desist Orders
Max per violation $3,000 Max per aggregate $30,000 Max per violation knowingly committed $30,000 Max per aggregate knowingly committed $750,000
Records and Requests for Information
Must be maintained for current calendar year plus 2 years prior