Being the 8th largest state in terms of area and 22nd most populous state in United States , Colorado has an extensive insurance market in which there are many insurance companies providing a wide range of policies and plans for the benefit of the citizen of Colorado and to be a dominant player in the insurance industry.
Colorado Division of Insurance regulates the insurance industry in Colorado. The body has undertaken various new initiatives as far as laws of insurance are concerned.
Some of the important functions of the Colorado Division of Insurance are:
To create a competitive environment in Colorado
To develop efficient regulatory process
To render consumer education
To protect the consumers’ interest
To collect revenues (aided by the Colorado State General Fund)
Life insurance is one of the foremost insurance types particularly in the developed countries such as the US. In all states of the US, life insurance is available in various policy forms and Colorado life insurance is no exception .
Types of Colorado Life Insurance:
Colorado Permanent Life Insurance offers two ways in which the monetary value of the policy could increase over time, and the premium will usually be invested partially. Access to permanent life insurance can be made in the future in some cases. This implies that one could apply for a partial surrender in case he/she wants to buy a home, pay for the child’s education, and also meet expenses associated with health care. Permanent life insurance could be whole life, variable life, and universal life insurance.
Colorado Term Life Insurance is provided by a life insurer which pays term life insurance death benefits in the event of the death of covered person. It is the simplest form of coverage in the life insurance industry and is a temporary policy and is understood more better when compared to permanent life insurance.
Home insurance is one of the most significant types of insurance in the U.S particularly owing to threatening natural upheavals. In the state of Colorado, there exists various weather-related threats to houses and therefore, home insurance is a flourishing industry.
Colorado home insurance is a “package policy”, which protects his/her home from certain perils (as specified in the policy) and protects him/her from damages if someone was injured on the former’s property.
If one has financed the purchase of his/her home through a financial institution, the lender will probably require him/her to carry some form of Colorado homeowner’s insurance. After the loan is payed off, the owner may cancel the policy without penalty-but doing so leaves his/her home and wallet vulnerable for loss.
Home Insurance Tips when to Buy Colorado Home Insurance:
When buying Colorado home insurance, one can follow certain tricks of the trade, such as:
1. Comparing Quotes
2. Understanding the Policy
3. Increasing the Deductible
4. Asking about Discounts
5. Optimizing the Coverage
6. Considering extra Coverage
Types of Colorado Home Insurance:
The most commonly purchased forms of Colorado home insurance are called HO-3, HO-4 and HO-6:
HO-3 protects one’s dwelling and personal property in the dwelling following loss or damage, and also covers damages to another person for which the owner is liable
HO-4 (also termed as “renter’s insurance,” it covers the personal property and liability of tenants)
HO-6 (protects condominium-unit owners, and is suitable to cover personal property and liability, the interior portion of the condominium and the loss of use.
Auto insurance is one of the most significant segments in the insurance industry owing to the increasing instances of accidents and theft of automobiles.
Colorado auto insurance provides a whole range of options to insure one’s vehicle.
Auto insurance in Colorado is basically a package of seven primary coverages, each of which has its own separate premium. The coverages include:
Bodily injury liability (protects if one injures or kill someone while operating his/her car)
Medical payments, no-fault or personal injury protection coverage (pays for the medical expenses of the injured driver and passengers in the insured’s car.
Uninsured motorists coverage (pays for injuries caused by an uninsured driver or, in some states, a hit-and-run driver, in a crash that is not at his/her fault)
Comprehensive physical damage coverage (pays for losses resulting from incidents other than collision)
Collision coverage (pays for damage to one’s car when his/her car hits, or is hit by, another vehicle or other object)
Property damage liability (protects the insured if his/her car damages someone else’s property)
Rental reimbursement coverage (pays for a rental vehicle when the insured’s vehicle is out of commission owing to the loss covered under comprehensive or collision coverages)
Car insurance is an important part of the insurance industry particularly owing to the increasing instances of theft and accidents of private vehicles.
Handy Tips for Purchasing Colorado Car Insurance include:
Money can be saved on Colorado Car Insurance by cutting down premiums by means of:
Keeping a clean driving record
Increasing the Deductible increasing deductibles will ultimately lower the premium
Asking about Discounts The insured owner may be eligible for discounts such as multiple-car or multiple-policy discounts
Requirements under Colorado Car Insurance:
Colorado car insurance includes coverage, such as:
Liability Insurance protects one from financial responsibility following an accident during which you injured other motorists. The minimum coverage amounts set by the State of Colorado are $25,000 per person for physical injury, $50,000 per accident for bodily injury, and $15,000 per accident for property damage. Uninsured/Underinsured Motorist Insurance provides financial protection if one is hit by an uninsured driver, an underinsured driver or a hit-and-run driver. The minimum amounts for uninsured/underinsured motorist coverage are $25,000 per person, and $50,000 per accident.
Changes in the System
In November 2003, the Colorado car insurance had been changed from a no-fault system to a tort insurance system. The earlier no-fault insurance system included a medical benefit known as Personal Injury Protection (PIP), which provided coverage for certain medical and rehabilitation expenses from injuries resulting in an auto accident.The tort system, on the other hand, relies on which insurance company would pay the medical and rehabilitation expenses of the party injured in an auto accident.
Health Insurance is a significant part of the insurance industry owing to rising health costs and in the US also, the scene is no different.
Handy Tips For Buying Colorado Health Insurance:
– To Get Recommendations – In case the owner has special needs or preexisting conditions, he/she has to contact a doctor or support organization for�Health Insurancerecommendations.
– To Ask Questions-after reading through the policy, direct any and all questions to your Colorado health insurance agent. A good agent will be more than happy to make sure you understand your policy.
– To Know What the Policy Covers-The owner should review the “exclusions and limitations” section of his/her policy. He/she should Know what his/her policy covers as that will help avoid surprises during a physician or hospital visit.
To Identify Coverage Area-if the owner is looking for a managed-care plan, he/she check the provider’s directory to make sure there are suitable doctors, hospitals and other health care facilities in his/her area.
Rights and Privileges of Colorado Health Insurance:
Under Colorado state law, there are certain rights pertaining to Colorado health insurance. One should be aware of the following rights and privileges of his to avoid any unpleasant surprises when it comes to Colorado health insurance to work:
– Insurance coverage for state-mandated benefits
– To Know what the�Health Insurance�plan does and does not cover
– To contact the insurer to complain or appeal against any decision with which one disagrees
– To receive a standard form outlining�Health Insurance�benefits for comparison between companies and health plans
– To receive a written explanation as to why an insurance company denies one’s�Health Insuranceapplication, or excludes a health condition from insurance coverage
– Coverage of emergency room care, if one believes he/she facing a life- or limb-threatening injury
– Prompt payment of claims
What to Do If You Are Denied�Health Insurance�Coverage:
If one has been denied Colorado health insurance due to preexisting medical conditions, he/she can go for the Colorado Uninsurable Health Insurance Plan (CUHIP).
A state-run program, CUHIP offers Colorado health insurance to those previously stated to be “uninsurable”.
However, due to the high risk levels, CUHIP subscribers pay about 30 percent more for Colorado health insurance than those insured through the normal market.
One may contact the CUHIP administrator at 1-800-672-8477 for more information.
Major Insurance Companies in Colorado are :
Golden Rule Insurance Company
American Family Insurance
Farmers Insurance Group
John Hancock Life Insurance
Allstate Insurance Company
American Home Shield
Last Updated on : 28th August 2013