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Can you summarize 5 CORS Article 3, Part 5?
REGULATION OF AGREEMENTS AND PRACTICES > CONSUMER INSURANCE PREMIUM FINANCING
Short Summary
This legal provision, found within the Colorado Revised Statutes under the Consumer Credit Code, governs consumer insurance premium loans. It specifically regulates the cancellation of insurance policies or contracts in the event of default on a consumer insurance premium loan. The provision requires that an agreement for a consumer insurance premium loan must contain certain information, including the names of the insurance agent or broker, insurer, policy or contract details, loan term start date, and a notice of potential cancellation for non-payment. If a policy or contract has not been issued at the time of the agreement, the agreement may allow for the insertion of appropriate information by the insurance agent or broker, which must be promptly provided in writing to the insured. In the event of default on the loan, the lender has the authority to give notice of cancellation to both the insurer and the insured. The notice must be in writing. Upon receiving the notice, the insurer must provide any additional notice of cancellation required by the policy, contract, or law within two business days. Within ten business days after the effective date of the cancellation, the insurer must pay any unearned premium on the policy or contract to the lender. The lender, in turn, must pay any excess of the unearned premium received over the amount owed by the consumer upon the insurance premium loan within ten business days of receiving the unearned premium. This provision aims to establish the procedures and obligations involved in canceling insurance policies or contracts due to default on a consumer insurance premium loan.
Whom does it apply to?
Lenders, insurance agents or brokers, insurers, and insured individuals involved in consumer insurance premium loans
What does it govern?
Consumer insurance premium loans
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Colorado