First Regular Session
Sixty-first General Assembly
LLS NO. 970552.01 DHG
SENATE BILL 97106
STATE OF COLORADO
BY SENATOR Hernandez
BUSINESS AFFAIRS & LABOR
A BILL FOR AN ACT
CONCERNING STANDARDS FOR THE DENIAL OF HOMEOWNER'S
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments which may be subsequently
Sunset process Senate Business Affairs
and Labor Committee. Requires the commissioner
of insurance to adopt rules setting standards for the nonrenewal,
cancellation, increase of premium, or reduction of coverage of
homeowner's insurance. Prohibits such actions unless they are
specifically authorized by the commissioner. Requires that the
insurer notify the insured before taking such action. Specifies
that failure to comply with the notice requirement is considered
an automatic renewal of the policy.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. 104110.7, Colorado Revised Statutes, 1993 Repl. Vol., is amended to read:
104110.7. Basis for cancellation,
nonrenewal, increase of premium, or reduction of coverage of homeowner's
insurer shall cancel or refuse to renew a policy of homeowner's
insurance unless such insurer mails by firstclass mail to
the named insured, at the last address shown in the insurer's
records, at least thirty days in advance a notice of its intended
action which specifically states the reasons for proposing to
take such action; but, where cancellation is for nonpayment of
premium, at least ten days' notice of cancellation accompanied
by the reasons therefor shall be given.
(1) NO INSURER SHALL CANCEL, REFUSE TO RENEW, INCREASE
THE PREMIUM, REDUCE COVERAGE AT THE TIME OF RENEWAL, OR REFUSE
TO WRITE A POLICY OF HOMEOWNER'S INSURANCE UNLESS SPECIFICALLY
AUTHORIZED BY THE COMMISSIONER.
(2) THE COMMISSIONER SHALL ADOPT RULES SETTING FORTH THE STANDARDS FOR CANCELLATION, NONRENEWAL, INCREASE OF PREMIUM, OR REDUCTION OF COVERAGE AT TIME OF RENEWAL AND STANDARDS FOR REFUSAL TO WRITE A POLICY OF HOMEOWNER'S INSURANCE BY AN INSURER.
(3) NO INSURER SHALL CANCEL OR NONRENEW A POLICY OF HOMEOWNER'S INSURANCE OR INCREASE THE PREMIUM OR REDUCE THE COVERAGE AT THE TIME OF RENEWAL OF SUCH POLICY UNLESS SUCH INSURER MAILS BY FIRSTCLASS MAIL TO THE NAMED INSURED, AT THE LAST ADDRESS SHOWN IN THE INSURER'S RECORDS, AT LEAST THIRTY DAYS IN ADVANCE A NOTICE OF ITS INTENDED ACTION THAT SPECIFICALLY STATES THE REASONS FOR PROPOSING TO TAKE SUCH ACTION. WHERE CANCELLATION IS FOR NONPAYMENT OF PREMIUM, THE INSURER SHALL GIVE AT LEAST TEN DAYS' NOTICE OF CANCELLATION ACCOMPANIED BY THE REASONS FOR SUCH CANCELLATION.
(4) AN INSURER'S FAILURE TO MAIL A NOTICE PURSUANT TO SUBSECTION (3) OF THIS SECTION SHALL BE CONSIDERED A MANIFESTATION OF THE INSURER'S WILLINGNESS TO RENEW SUCH POLICY AND THE INSURER SHALL BE DEEMED TO HAVE RENEWED THE POLICY FOR AN IDENTICAL PERIOD AT THE SAME TERMS, CONDITIONS, AND PREMIUM AS THE EXISTING POLICY.
SECTION 2. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.