By: Tom Walton, Associate Attorney, Sutton | Booker | P.C.
As a result of the unprecedented and extraordinary impact of the COVID-19 crisis, the Colorado Division of Insurance (DOI) has directed all insurance companies to make specific reasonable accommodations to prevent individuals and business from losing coverage due to cancellation for non-payment of premiums during the present crisis and collect data regarding such accommodations.
Effective March 27, 2020, DOI Bulletin No. B-5.38 requires all insurance companies to provide policy holders reasonable accommodations, including, but not limited to:
- 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 continuation of coverage for any expiring policy.
The accommodations must be provided until the Colorado Department of Public Health and Environment lifts restrictions on normal business and personal activities, or the DOI rescinds Bulletin No. B-5.38, whichever is later. Insurers must also post and maintain clear explanations of the accommodations they provide on their websites for the same period of time.
The DOI will be requesting data from insurers related to Bulletin No. B-5.38 compliance, including the number of accommodations made or rejected by the insurer. The DOI will issue further guidance regarding the manner and method for reporting this information.