How to choose insurance
that is right for you.
A guide for Colorado consumers
Editor’s note: The Colorado Legislature passed HB1385 in 2008, establishing, among other requirements, a “Consumer Guide to Insurance on the Web.”
This guide is expected to be a fluid document, and will be modified over time as new information is available, and edited as some information becomes outdated over time.
Check back as we will add more useful information regularly.
For more information, the full text of HB 1385 is available at this link
Quick Insurance Links (see more links at left):
What types of common insurance are needed?
Which types of insurance are required -- and which are recommended?
What factors should I consider before I purchase any insurance?
There are many choices to consider when selecting insurance, including:
- the type of insurance you need,
- coverage limits,
- benefits offered and if they meet your needs,
- special riders or options that are unique to your situation,
- premium costs,
- the company and its reputation, and,
- the number of complaints a company has received, in comparison to
other companies of similar size.
Resources and Tools The Colorado Division of Insurance offers many resources to help you understand insurance options, to compare companies’ customer service and rates, and to learn about types of coverage offered in various lines of insurance. |
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Rates and Forms The Division of Insurance provides a rates and forms report search that allows anyone to obtain and compare information on current insurance rates.
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Health Care Reform |
Complaint Index / Complaint Ratios Report (click title to follow link) Larger companies will typically have more complaints than smaller companies, so seeing the amount of business a company does in Colorado allows the consumer to compare the percentage of other consumers who filed complaints against a company, regardless of company size. |
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Tell it like it is. Complaint ratios are created by compiling reports on the number of complaints, and confirmed complaints made against a particular company. If you wish to have an analyst review your specific insurance complaint and/or file a complaint on an insurance company that you feel has not treated you appropriately, you may do so at this link: |
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Insurance. The rate summary is required to be posted on the Division of Insurance website.
There are many changes occurring due to national health care reform.
Consumers can file a written complaint 
Comparison shop.
You can compare benefits, options, rates, complaints and even company reputations
to make informed insurance decisions. You have choices when you select insurance.
Health insurance. (Recommended, not required by law.) 
Nobody can predict how long a person will stay healthy
and avoid all accidents and injuries.
Having health insurance means if you or an insured family
member have serious medical costs, you will have
assistance in paying them through your insurance.
(Click here for more tips on choosing health insurance.)
In certain situations, health insurance can be required.
For example, colleges and universities often require
students to purchase health insurance or to prove that
they carry private health insurance.
Discount Health Plans and Discount Medical Cards Technically, these are not insurance so the Division of Insurance does not regulate these plans. However, if the card or plan is represented as an "insurance" plan, it falls under the jurisdiction of the Division. Be aware that state laws protecting buyers of insurance will not protect people who buy Discount Health Plans or Discount Medical Cards.
Be sure the health plan you select provides the coverage you need. Some consumers have been fooled into purchasing "health plans" that are not insurance and do not provide the coverage needed when there is a medical crisis or health event.
Check first:
Don’t learn the hard way.
Certain products, such as
“Discount Health Plans”
may not provide the benefits
you expect when you
need them most.
If you have questions about a health benefit plan or health “discount” plan, find out if the company is registered to sell insurance in Colorado before you agree to the policy or make a payment. If it’s not really health insurance, you may be out of luck when you need medical help and file a claim.
CoverColorado – State Health Insurance program for people
who are otherwise not insurable
(click link for more information.)
CoverColorado is a non-profit entity created by the Colorado Legislature to provide medical insurance for eligible Colorado residents who, because of a pre-existing medical condition, are unable to get coverage from private insurers.
CoverColorado also serves as the state’s plan for individuals
who are eligible under the Health Insurance Portability and Accountability Act, otherwise known as HIPAA.
Senior Health. The Senior
Health Insurance Assistance Program, within the Colorado Division
of Insurance, helps people enrolled in Medicare with questions about
health insurance. Topics addressed by the program include Medicare,
Medicare supplement insurance (Medigap), Medicare HMOs, Medicaid
assistance for people on Medicare, and long-term care insurance.
Click this link for more information on senior health issues and available services.
Auto insurance. (Required.) You must have car insurance if you own and drive a car. If you are driving a car you do not own, you must be sure it is insured and you are covered, either by your own policy or by the owner, in some cases.
(Click link to find more tips on buying car insurance.)
Colorado law requires you have at least
the minimum of
$25,000 per person
bodily injury /
$50,000 per accident
bodily
injury
and $15,000 property damage liability.
If you have a loan on your vehicle your lender
will also require you carry comprehensive
and collision coverage which insures the
lender’s interest in the vehicle.
Medical Payments coverage or Med-Pay.
(Mandatory Offer/Recommended.)
As of Jan. 1, 2009, Med-Pay is a required part of every automobile insurance policy issued or renewed in Colorado.
Consumers have the option of “opting out” which means they can
state in writing they do not want the additional medical coverage
as part of their automobile insurance.
Although each consumer must make the decision,
Med-Pay is recommended for those individuals
who do not have the financial resources to pay the
immediate medical costs often associated with a car accident.
(Click this link for more "med pay" information.)
GAP Insurance (Guaranteed Asset Protection)
pays the difference between the loan amount and
the market value of the car. As soon as you drive
a new car off the lot, it typically depreciates in value.
If your car is totaled and there is a difference between
the value of the vehicle and the loan amount,
gap insurance pays the difference subject to the
terms and conditions of the policy.
Typically, financed GAP coverage will not pay for the amount of the loan that may have been rolled over from a previous loan. For example, if you trade in your vehicle
with a loan balance and roll that loan balance in to a new loan the GAP coverage may not cover that amount rolled over.
Umbrella Liability Coverage. Personal umbrella liability insurance is designed to protect against a catastrophic lawsuit or judgment. It provides expanded coverage and increases the amount of your liability protection beyond the basic coverage provided under auto insurance, homeowners and/or renters policies.
An umbrella policy kicks in when the limit is reached on the underlying liability coverage in your homeowners, renters, condominium or automobile policy. In addition to offering financial protection for events such as personal injury, either on your property or when caused by your vehicle, an umbrella policy may also cover you for things such as libel and slander.
Private Mortgage Insurance (PMI)
is extra insurance that most lenders
require as part of a contract to purchase
a home. Homeowners who obtain loans
that are more than 80 percent of their
new home’s value to protect financial
institutions must purchase private mortgage
insurance as part of the loan contract.
PMI allows individuals to purchase a home
with less than a 20 percent down payment.
Private mortgage insurance protects the
lender (not the buyer), if the buyer defaults on the loan.
Title Insurance. When a house, building or other property is bought and sold,
all the parties involved want to be sure the “title” or transfer of
ownership is clear. Title insurance protects the owner and the lender against loss arising from problems connected to the title to the property.
Click this link to learn more about title insurance and consumer choices.
Flood insurance is not included
in typical homeowners
insurance and must
be purchased separately.
(Click link to flood insurance information.)
Homeowners insurance (dwellings and structures)
insures your real and personal property if you own a
house, townhouse or condominium. If your property
is damaged, insurance will pay for repairs or
rebuilding to the terms of your policy, to include your
personal items in the home, attached and free standing
structures (based on limits in your policy).
Policies will cover typical damage from fire, wind and
tornado,
or
damage from an event such as a tree falling
on your house
or a
truck knocking down a wall.
(Click link to more information on property insurance.)
If you own a home and have homeowners insurance, in addition to protection on structures, your personal property is also covered by most homeowners policies up to specified limits. Your homeowners insurance protects your personal belongings: furniture, appliances, televisions and clothing in case of loss or damage.
Insured personal property, subject to the policy terms and conditions, is actually covered anywhere in the world as long as it is owned or used by the policy holder, or covered family members. Generally there is 10% of total contents coverage limitation when property is at any location other than the insured premises.
Coverage for personal property is limited unless endorsements are bought, so make sure you research and understand what kind of coverage is available to you for your personal property. If you have items of special or unusual value, speak with a representative of your insurance company to see how they can be covered and if there is additional cost. Document and tell your insurance representative about any expensive artwork, jewelry or heirlooms to see if special endorsements are needed.
Contents Insurance
(also known as tenant or renters insurance)
to replace your valuables and personal things against loss.
(Recommended, not required.)
You can purchase a separate policy for your valuables if you
are a renter or college student without coverage.
If your items are damaged or stolen, this “renters” or
“contents” insurance pays to replace or fix your insured
valuables and belongings.
(Click link to other tips for renters.)
Renters should know that their personal
property and belongings are NOT covered
by the landlord's or property owner's insurance.
In order to protect valuables, renters must
purchase separate insurance. Renters
insurance was designed to give the resident
protection on his or her belongings. Most
renters policies include liability coverage
to protect you in the event you are liable for
damage to others. For example, if a fire starts
in your unit and you are determined to be
responsible, the liability coverage will pay for
damages caused to others' property, including but not limited to the property
owned by the landlord and other tenants.
Some property management associations may require the purchase of liability insurance.
College students who live away from home should find out if their parents' homeowners policy covers them at school.
Whether you rent or own, it will help with any insurance claim for personal property and belongings if you have a list of things you own. The Home Inventory Checklist is a great way to start. (Also available as an app for Android and iPhone from the National Association of Insurance Commissioners.)
Tip: be sure you store the inventory list AWAY from your home so you can reach it when needed. One way is to send a copy to yourself in an email which you can access from anywhere.
Rental property insurance is a different type of coverage for landlords.
Owners of rental property may purchase dwelling coverage for the property under a personal dwelling fire policy. If you own several rental properties, an insurer may issue a business owners policy for these properties. This coverage, subject to the terms and conditions, provides similar coverage as homeowners; however there is no coverage, or may be limited coverage, for personal property because it is non-owner occupied.
In addition to the insurance listed above, some professionals and businesses are required to carry certain types of insurance.
Here are some examples:
- many professionals, including doctors, attorneys, and building contractors are required to carry professional liability insurance;
- individual mortgage brokers doing business within the state of Colorado are required to carry liability insurance that includes Errors & Omissions insurance, in addition to other licensing and surety bond requirements;
- most employers are required to carry Workers Compensation insurance;
- business owners should also know requirements for property, liability, and replacement insurance for the specific type of business. In some cases, the insurance is recommended, but not required by law.
Link to information and requirements on starting a business in Colorado.
Specialty Insurance
The insurance industry creates additional types of insurance to meet consumer needs and the changing marketplace. Travel insurance, pet insurance, and credit insurance are all fairly new types of coverage. You must evaluate the premium costs and potential benefits to see if these products will work for your situation.
Types of Insurance Regulated by the Colorado Division of Insurance
(just a partial list)
Accident • Annuities • Automobile Insurance • Bail Bonds • Commercial Property • Condominium Insurance • Credit Insurance • Dental Insurance • Farm/Crop • Fire • Pre-Need Funeral Insurance • General/Professional Insurance • Health/Medical • HMO (Health Maintenance Organization) • Homeowners • Liability • Life Insurance • Long-Term Care • Medicare Supplement • Pet Insurance • Personal Property Insurance • Renters Insurance • Title Insurance • Travel Insurance • Viatical (Third Party Life Insurance)
Types of Insurance which may be regulated, or partially regulated, by another department or agency: (click links for more information)
Federal Government Health Benefit plans
(for employees of the Federal Government)
Employer-funded Health Insurance
(self-funded or ERISA plans)
Click here for fact sheet on Employer-funded Health Insurance
State or Federal Jurisdiction for Some Health Plans
Some types of insurance or insurance products are not under state jurisdiction. For example, if you have health insurance through your employer that is self-funded (the employer provides health or disability benefits to employees and assumes the direct risk for payment of claims), this type of insurance is called an ERISA plan and is under the jurisdiction of the Federal Government. Generally, under this type of plan, the employer hires an insurance company to act as a "third-party administrator" for the employer's health care plan, providing claims processing but not accepting any risk.
ERISA plans must still meet certain guidelines, such as detailing how a person appeals a denial of benefits. If you are unsure if you have employer self-funded insurance, ask your employer or call the Colorado Division of Insurance for more information.
Click here to learn more about ERISA (employer-funded or self-funded) plans.
ERISA exempts self-funded health care plans from state insurance regulation. Therefore, when you need assistance or want to make a complaint about services, you need to contact your human resources department or the U.S. Department of Labor. The Colorado Division of Insurance will be glad to assist you with questions you may have, but may not have jurisdiction over matters we do not regulate.
Workers Compensation
Some workers' compensation issues are handled by the Division of Insurance, and others by the Division of Workers Compensation.
Workers Compensation - Division of Insurance information page
Division of Workers Compensation (Colo. Dept. of Labor & Employment)
The Division of Insurance oversees licensure of insurers
and agents, rating, underwriting, requirements for
provision of risk management services, experience
modification factor concerns, and data reporting.
The Division of Workers Compensation handles
any issues associated with a claim, along with proof
of coverage questions or issues regarding who
must be covered by workers' compensation.
Please feel free to contact us if you are not certain
where your question or complaint should go, and
we will make sure you are routed to the correct agency for resolution. There are resources available on our website
if you are interested in more information, including:
- Workers Compensation Loss Costs guide,
- Workers Compensation and Employers Liability Insurance Guide,
The Division of Workers Compensation is part of the Colorado Department of Labor and Employment. (It is not part of the Division of Insurance, which resides in the Colorado Department of Regulatory Agencies.) Both of these state agencies have some responsibilities for regulating Workers Compensation Insurance in Colorado.
If you have questions about a workers compensation claim, or if you are an employer looking for workers compensation insurance, you may find the information needed on the Division of Workers Compensation website.
As the agency overseeing workers compensation in this state, the Division of Workers Compensation establishes rules, procedures and programs to enforce the law and to resolve disputes that may arise between the employer and the injured worker.
You can find information on many types of insurance purchased by consumers on the Division of Insurance main consumer information page.
Consumer Alerts and Tips
Need insurance, but not sure where to start?
Our Consumer Alerts and Tips page includes helpful information on how to select insurance in a variety of categories, including health, homeowners, auto insurance and more. It will point out common pitfalls, and let you know when there's an insurance scam to avoid.
Look it up. 
Licensed companies and agents are
listed on the Division of Insurance website.
Protect yourself: Be sure you are
doing business with a licensed agent.
Find a Licensed Insurance Company or Producer (click link)
The Colorado Division of Insurance licenses all producers and agencies and regulates insurance entities based in Colorado. Producers must meet educational requirements to be licensed
to sell insurance products. Companies are required to be
licensed to have their products sold in Colorado.
Information found at this link allows consumers to verify that a producer/agency is properly licensed in Colorado and that the insurance company has met all necessary financial requirements to operate legally in the state. If you are considering purchasing “insurance” and the producer is not listed, call the Division of Insurance for more information. Be sure you are not being scammed or purchasing a benefit plan that is not really insurance.
How the Division of Insurance Protects Consumers
Before you sign a contract for insurance, you may want to know if the person or company selling the policy has previously been in trouble for insurance-related problems. You can review all enforcement actions taken against agents and/or companies to determine whether the person is someone with whom you want to do business.
The Division of Insurance lists enforcement actions in tables that can be sorted by the date of the action, the company or agent’s name, the type of action and other categories.
To see if an agent (producer) or company (industry) has been reprimanded previously, or if the agent or company has a history of previous violations, you can search the following table of all enforcment actions here:
Enforcement Actions (click link)
An enforcement action, by definition, is the result of an investigation or examination that reveals a violation of insurance law.
Actions can result in fines, restitution, cease and desist orders, license supervision or a revocation/surrender of a license.
Market Conduct Exams (click link)
The Colorado Division of Insurance conducts “market conduct examinations” of insurance companies to be sure that the companies are in compliance with the Colorado laws and regulations with regard to rating, underwriting and claim practices. These exams can be scheduled based on consumer complaint activity, special requests, or at regular intervals. Not every market conduct exam results in a finding of wrongdoing.
Market conduct examinations focus on the business practices of insurers and producers (agents) and are designed to monitor marketing, advertising, policyholder services, underwriting, rating, and claims practices. Market conduct examination reports document the findings of our examiners. The adopted reports are public records and are posted on the Division of Insurance website. The reports identify what was reviewed by the examiners and indicate any alleged violations of the law discovered during the exam. The reports also summarize actions taken by the insurers to correct the alleged non-compliant practices.
To see if a company has recently conducted or been the subject of a market conduct exam, and to review the results of the exam, click the following link: Market Conduct Exams
Financial Exams (click link to see Financial Examinations and results)
The Colorado Division of Insurance conducts “financial examinations” of domestic insurers ( those insurers that are incorporated in this State) to ensure that the domestic insurers are following Colorado’s various financial insurance laws as well as the rules for statutory accounting. The examinations are performed on all domestic insurers at least once every five years. The examination includes a review of the company’s filed annual statement, a review of the internal control’s of the company and compliance reviews of the various financial laws, regulations and accounting produces that companies are required to follow.
The adopted reports are public records and are posted to the Division of Insurance website. The reports identify what was reviewed by the examiners and indicate any recommendations.
To see if a company has been subject to a financial examination and to see the results of the examination please click this link:Financial Exams
Scams and Fraud 
In addition to many qualified professionals who provide good service to their customers, the insurance industry also attracts its share of scam artists. There have been individuals who collect insurance premiums but never provide benefits, people who steal their customers’ identities, people who are not licensed for the type of insurance they pretend to sell, and people who sell policies that are not appropriate for the individual’s situation.
Check out these helpful tips to be sure you are getting what you pay for, and not exposing yourself to unnecessary risks.
Protect your identity
to protect your financial health!
Keep all personal information secure.
Discount Health Plans and Medical Cards.
Discount Health Plans are not insurance (click link)
Consumers who are looking for ways to reduce the cost of health care may be tempted to purchase a Discount Health Plan or Discount Medical Plan instead of health insurance. These plans often promise significant savings over traditional health insurance plans, but may not provide the coverage expected when it comes time to file a claim.
Buying a Discount Plan instead of true health insurance will affect you on many levels. Learn more about Discount Health Plans and Discount Medical cards before choosing a Discount Plan instead of "real" health insurance.
Publications
Many tip sheets, brochures, statistics,
reports and other publications are
available on the Division of Insurance website.
You can browse the complete list on our
Library of Publications
(click link to view all publications.)
Colorado Revised Statutes
-- State Laws about Insurance (click to follow link.)
If you want to know if a particular action is legal, or what requirements are for insurers in Colorado, you can view and search Colorado laws related to insurance here.
Most, but not all, laws related to insurance are in Colorado Revised Statutes Title 10, Insurance.
Regulations and Bulletins help insurers and consumers understand the specifics of how insurers must conduct business in Colorado, and set forth standards and procedures for conducting business.
Regulations interpret but do not exceed the scope of the more general statutes passed by the Colorado General Assembly. Click here to review Colorado's insurance regulations.
Bulletins express the Division's interpretation of or position on existing law, including both regulations and statutes, but do not have the force of law.
Click here to review Colorado's insurance bulletins.
updated 12/2011
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