The bill requires the insurance commissioner (commissioner) to adopt rules on the following related to the sale of homeowner's insurance in Colorado:
- Criteria and requirements for estimates of replacement value of insured property; and
- An educational requirement for insurance producers related to homeowner's insurance, including estimating replacement value.
The bill also puts into place the following with respect to homeowner's insurance policies in this state:
- Minimum requirements for additional living expense coverage for a period of time of no less than 24 months after a loss requiring additional living arrangements;
- Requirements that insurers make available to policyholders copies of homeowner's insurance policies, including declaration pages, within 48 hours after a loss or a request;
- Standards for paying contents loss claims in the event of total loss;
- Additional arbitration requirements for disputes between insured homeowners and insurers relating to policy coverage;
- A requirement to provide summary disclosure forms to homeowner's insurance policyholders at least annually; and
- Potential disciplinary action by the commissioner against insurance producers that fail to:
- Accurately describe to an insured the relationship of the producer to an insurer as the representative of the insurer and not a representative of, or advocate for, the insured policyholder; or
- Accurately represent the adequacy of policy limits in a homeowner's insurance policy to cover total loss of the property.