Life matters
In Colorado, life insurance policies are regulated by Colorado Revised Statute Title 10, Article 7. According to the Colorado statute, the life insurance beneficiary must provide the insurance company with a copy the death certificate or fact of death in order to receive benefits. The beneficiary must also prove the policy's existence. Life insurance not only provides benefits to those left behind but also opportunities to borrow money against the policy.
Requirements
Colorado Revised Statute Title 10, Article 7 sets life insurance policy requirements. Life insurance premiums must be paid in advance. The insurer must sign the policy upon payment. Life insurance policies in Colorado are generally incontestable after two years, except in the case of non-payment or a violation of the policy. An insurer may contest the policy is if the policy grants additional money in the event of death by accident. Additionally, the policy must contain a table of rates and when and how proceeds will be paid.
Death by Accident
For an insurance beneficiary to claim death by accident, the accident must be the predominant cause of death. Unusual or unanticipated results from a common event as well as "violent and unexplained death from external causes" are considered accidents, according to the Digest of Insurance Law in Colorado. Suicide can not be contested if it was committed one year after the policy was in place, according to Colorado life insurance laws. Also, a beneficiary cannot be denied a claim if the deceased was insane and had an accident.
Prohibited
Life insurance policies in Colorado are prohibited from including certain provisions, according to Colorado statutes. A life insurance company may not retro-act a policy more than one year in order to qualify the insured for an age stipulation. Also, a life insurance company may not deny or suspend coverage to in individual who has or will travel abroad unless there is a documented risk of travel.
Loans
A life insurance company may not cancel a policy if the holder has failed to repay a loan against the policy in the Colorado under certain conditions. If the insured borrows money and the loan and the interest are still of less value than the policy, the policy may not be canceled. The policy may be canceled if the policy specifically contains a provision restricting the loan payment plan. If a restriction provision exists, the company must gives the insured one months notice of policy cancellation.
Insurance Sales
In Colorado, life insurance companies are required to be licensed. Life insurance companies are required to fulfill all provisions of a policy. It is up to the life insurance company to notify the insured if for some reason the insured can not be covered. All statement and acts done by a life insurance sales representative are considered authoritative within the field, except when the statements or actions directly dissent from the policy, which the insured is presumed to know.
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