Colorado Legislative Council Staff

NO FISCAL IMPACT

TITLE:            CONCERNING THE ISSUANCE OF CREDIT INSURANCE IN CONNECTION WITH CREDIT TRANSACTIONS HAVING CERTAIN TERMS OF INDEBTEDNESS.

Summary of Assessment

            This bill changes the statutory provisions for credit insurance regulated by the Division of Insurance, Department of Regulatory Agencies. The bill eliminates the provision that limits credit insurance to transactions of ten or less years in duration. The bill also allows credit insurers to offer coverage that is shorter than the full term of the indebtedness remaining at the time such coverage is elected. The bill further requires credit insurers to inform purchasers in writing that the coverage will terminate before the scheduled maturity date of the indebtedness and to disclose such information in prominent type on the first page of the group certificate or individual policy. The bill would become effective upon signature of the Governor.

            This bill will not affect the workload of the Division of Insurance, or any other state agency or unit of local government. Therefore, this bill is assessed as having no fiscal impact.

Departments Contacted

            Regulatory Agencies