CO| The Colorado Division of Insurance Bulletin No. B-5.54 provides guidance regarding auto insurance deductibles and clarifies that policyholders must pay their deductibles as stipulated in their insurance contracts. Insurers are prohibited from condoning or participating in arrangements where auto repair shops waive deductibles, and must communicate clearly to policyholders about this responsibility. Referring policyholders to shops that waive deductibles or failing to properly disclose the deductible obligation may constitute misrepresentation or fraud under Colorado law.
Main Points:
- Insurers must ensure deductibles are paid by policyholders and cannot participate in waiver schemes.
- Referrals to repair shops waiving deductibles or failure to communicate deductible responsibility may be considered fraud or misrepresentation.
- Insurers should report detected waiver practices to the Colorado Division of Insurance and investigate potential legal violations.