3 Colo. Code Regs. § 702-5-2-16-5
Current through Register Vol. 47, No. 24, December 25, 2024
Section 3 CCR 702-5-2-16-5 - RulesA. Summary Disclosure Form 1. The summary disclosure form shall provide notice in bold face letters that the policyholder should read the policy for complete details and that such summary disclosure form shall not be construed to replace any provision of the policy itself.2. Insurers and producers shall use the attached summary disclosure form. Insurers may only modify the form to provide additional information and/or clarification.3. Insurers' summary disclosure forms filed with the Colorado Division of Insurance (Division) shall be open for public inspection.a. Every insurer shall update and file with the Division the summary disclosure form to reflect any changes in major coverages and exclusions of such policies of insurance and changes in factors considered in cancellation, nonrenewal and increase-in-premium situations.b. Insurers shall include a side-by-side comparison with proposed changes identified by strikethroughs and highlighted text. Insurers shall also include a clean, final version of the form.B. Disclosure Requirements 1. A licensed insurer or producer writing automobile insurance coverage must provide the summary disclosure form to applicants for insurance coverage, at the time of the initial insurance purchase and thereafter on any renewal when there are changes in major coverages and exclusions or changes in factors considered in cancellation, nonrenewal and increase-in-premium situations.2. The summary disclosure form must be delivered to the applicant at the time of the initial insurance purchase (or renewal when applicable). The summary disclosure form may be delivered in the following manner: through the insurer or producer's internet web site; by hand-delivery, facsimile or e-mail to the applicant; or if none of the foregoing modes of delivery are available, by placing a copy of the form in the mail to the applicant within 48 hours of purchase.3. The summary disclosure form is a required form. If there is a dispute after inception of the policy regarding whether the summary disclosure form was provided at the time of the initial purchase of the policy (or renewal when applicable), the insurer or producer must be able to provide evidence that the summary disclosure form was provided to the applicant or insured, otherwise the presumption will be that the summary disclosure form was not provided to the applicant or insured.4. An explanation of medical payments coverage is required in the summary disclosure form. The insurer must issue policies with $5000 medical payments coverage unless its insured rejects such coverage in writing or in the same medium in which the application for the policy was taken. Nothing in this section shall prohibit the insurer from offering higher medical payments limits.5. The disclosure requirements outlined in this regulation do not apply to policies insuring exempt commercial policyholders as defined in §§ 10-4-1401, et seq., C.R.S.6. The disclosure requirements outlined in this regulation apply to automobiles as defined in Section 4.B. of this regulation.C. Additional Disclosure Requirements 1. An insurer must provide a clear explanation to the insured regarding: a. The products purchased;b. The amount of coverage purchased; andc. How the determination of fault in an automobile accident affects the applicability of coverage.2. The additional disclosure requirements outlined in Section 5.C.1.a. and b. above may be satisfied by including the information in the declarations page of the policy.3. The additional disclosure requirement outlined in Section 5.C.1.c. above shall be satisfied through the issuance of the summary disclosure form referenced in Section 5.A. of this regulation.D. Optional and Enhanced Coverages1. An insurer or producer shall not automatically add optional or enhanced coverages that will result in an increased premium to an insured's policy without the express consent of the insured.2. The consent of the insured may be provided in the same medium in which the policy is offered. The insurer or producer shall maintain adequate evidence of the insured's consent for at least three years. Such evidence shall be subject to review by the commissioner.3. An insurer or producer must record whether the optional or enhanced coverage added for an increased premium was requested by the insured or recommended by the insurer or producer and consented to by the insured.38 CR 17, September 10, 2015, effective 10/1/201538 CR 18, September 25, 2015, effective 10/15/201539 CR 01, January 10, 2016, effective 2/1/201639 CR 05, March 10, 2016, effective 4/1/201641 CR 01, January 10, 2018, effective 2/14/201840 CR 21, November 10, 2017, effective 4/1/201841 CR 19, October 10, 2018, effective 11/1/201842 CR 18, September 25, 2019, effective 1/1/202042 CR 23, December 10, 2019, effective 1/1/202044 CR 13, July 10, 2021, effective 6/3/202144 CR 08, April 25, 2021, effective 8/1/202145 CR 03, February 10, 2022, effective 3/2/202245 CR 22, November 25, 2022, effective 12/15/202246 CR 11, June 10, 2023, effective 4/27/2023