The Colorado Department of Public Health and Environment has issued multiple Public Health Orders including 20-20, 20-22, 20-23, and 20-24 (collectively “Orders”), which have limited otherwise normal business and personal interactions and activities. Due to this unprecedented impact on employment and business activities, the Colorado Department of Regulatory Agencies – Division of Insurance (“DOI”) has recognized the impacts to the self-quarantine requirements for Colorado policyholders.
On March 27, 2020, DOI issued Bulletin No. B-5.38 to provide directives and guidance to property and casualty insurance carriers with active policies in the State of Colorado under Article 4 of Title 10, C.R.S. and insurance producers who collect and remit premiums in accordance with Section 10-2-704, C.R.S.
In relevant part, DOI took the following position:
The Division directs all insurance companies issuing coverage to personal and commercial policyholders to make reasonable accommodations to prevent individuals and businesses from losing coverage due to cancellation for the non-payment of premium during this unprecedented time.
Although not exhaustive, DOI listed examples of “reasonable accommodations” that insurance carriers should implement for Colorado policyholders:
- Extension of premium grace periods;
- Waiver of late payment fees;
- A moratorium on cancellations for non-payment;
- Defer any non-renewal underwriting actions; and
- Provide a continuation of coverage for any expiring policy.
The DOI stated these accommodations should be available and clearly explained to Coloradans on their insurance carrier’s website, for as long as the Colorado state Orders remain in effect or until Bulletin No. B-5.38 is withdrawn.
Colorado policyholders should explore options provided by their insurance company during this extraordinary time to ensure they can take advantage of any accommodation provided while facing the economic hardships that are an unfortunate and terrible consequence of the global COVID-19 pandemic.
