If you own life insurance in Colorado, or if you are thinking about buying a policy, here is some vital information you should know regarding laws and regulations in the state of Colorado.  These laws and regulations are in place to protect both the consumer and the insurance company.

Colorado Laws and Regulations

Rules regarding life insurance in Colorado are regulated under title 10 of the state statutes.

Grace Period

Colorado laws dictate that insurers must provide clients with a one month grace period.  This period of time is to prevent an

insurance company from withholding a claim due to a slightly late payment.  If you miss a life insurance payment, your policy will stay in force for one month, unless another payment is made.  If death of the insured occurs during the grace period, the life insurance company must pay the claim.

Free Look

Colorado does not have a mandatory free look period.  This means that once you accept your life ins

urance policy, companies are not obligated to allow you to return the policy for a refund.  While not obligated, most companies do provide a

reasonable period of time where you may return the policy and be refunded all premiums.  This can vary from 7 to 30 days depending on the company, and the insurance company must apply this rule consistently and fairly across all policy holders.  Check with your insurance company before you buy an insurance policy to find out what their protocol is for free looking a policy.

Timely Payment

All insurance companies are required to settle claims in a timely manner.  This means that most claims are paid within a two month period.  If your insurance company fails to pay a claim in a timely manner, they may be fined or sanctioned by the state.



The Colorado Life and Health Insurance Protection Association will guarantee the death benefit of your policy against insurer bankruptcy up to $300,000.  This limit is applied per person, regardless of whether or not the death benefit in the contract was for a higher amount, or if the insured had multiple policies.  Always choose a financially sound life insurance company when choosing a policy.

Colorado Division of Insurance

Telephone:  800-886-7675


Life & Health Insurance Protection Association

PO Box 36009

Denver, CO  80236

Telephone:  303-292-5022