CO| The updated regulation aims to provide clear and comprehensive information to policyholders about their coverage, rights, and obligations. It introduces new requirements for insurers, including the provision of summary disclosure forms in English and Spanish, language selection options for policyholders, and specific rules for policy cancellation, non-renewal, and premium increases. The amendments to Regulation 5-2-16 concerning disclosure requirements for private passenger automobile insurance policies in Colorado effective March 17, 2025.
Key points:
- Insurers are required to prioritize benefit payments in accordance with Colorado insurance law and provide clear explanations of coverage purchased and how fault determination affects coverage applicability.
- Insurers must provide summary disclosure forms in English and Spanish, detailing coverage, exclusions, and factors considered for policy changes.
- A language selection form must be offered to new applicants and renewal policyholders, allowing them to choose to receive the Spanish summary document form.
- Medical payments coverage of $5,000 will be included in policies unless rejected by the policyholder in writing or through the same medium used for policy application.
- The regulation outlines specific circumstances under which insurers may cancel or non-renew policies, as well as reasons for premium increases.