Key Takeaways
- Colorado requires a 10-day free look period for disability insurance policies (30 days for LTC)
- Individual disability policies must include standard policy provisions
- Colorado Long-Term Care Partnership Program provides Medicaid asset protection
- LTC policies must offer inflation protection options and nonforfeiture benefits
- Producers must complete specific training to sell LTC insurance
Colorado Disability and Long-Term Care Insurance
Colorado has specific regulations for disability income insurance and long-term care insurance that protect consumers and ensure adequate coverage.
Disability Income Insurance
Free Look Period
Colorado requires a 10-day free look period for individual disability insurance:
- Policyholder can return for full premium refund
- Begins when policy is delivered
- Applies to individual policies
Required Policy Provisions
Colorado disability policies must include:
| Provision | Requirement |
|---|---|
| Grace Period | Minimum 31 days for annual premium |
| Reinstatement | Must allow reinstatement within specified period |
| Notice of Claim | Reasonable timeframe after loss begins |
| Time to Pay Claims | Prompt payment after proof of loss |
| Legal Actions | No earlier than 60 days after proof of loss |
Cancellation Requirements
For guaranteed renewable policies:
- Written notice before cancellation for nonpayment
- Cannot cancel for health reasons
- Can only cancel for nonpayment or fraud
Colorado Workers' Compensation
Colorado requires workers' compensation for employers:
| Feature | Detail |
|---|---|
| Who's Covered | Most Colorado employees |
| Coverage | Medical expenses and lost wages |
| Funding | Employer-paid insurance |
| Administration | Division of Workers' Compensation |
Long-Term Care Insurance
Colorado has comprehensive LTC insurance regulations:
Free Look Period
- 30-day free look for LTC policies
- Applies to all individual LTC policies
- Policyholder can return for full refund
Required Provisions
| Provision | Requirement |
|---|---|
| Renewability | Must be guaranteed renewable |
| Pre-existing Conditions | Max 6-month look-back |
| Elimination Period | Must disclose clearly |
| Inflation Protection | Must offer option |
| Nonforfeiture | Must offer option |
Inflation Protection Options
Insurers must offer at least one inflation protection option:
- Compound inflation (3% or 5%)
- Simple inflation
- Consumer Price Index adjustment
- Benefit increase option
Colorado Partnership Program
Colorado participates in the Long-Term Care Partnership Program:
How It Works
- Purchase a Partnership-qualified LTC policy
- Use benefits for care
- If benefits exhaust, apply for Medicaid
- Asset protection - Keep assets equal to benefits received
Example
| Without Partnership | With Partnership |
|---|---|
| Spend down to Medicaid limits | Protect assets up to benefits paid |
| Lose most assets | May keep home and assets |
| Standard Medicaid rules | Enhanced asset protection |
Producer Requirements
To sell LTC insurance in Colorado:
- Complete 8 hours of LTC-specific training
- Complete training before selling
- Ongoing CE requirements
- Must complete training before each license renewal
How long is the free look period for long-term care insurance in Colorado?
What is the primary benefit of purchasing a Colorado Partnership-qualified long-term care policy?
How many hours of training must a producer complete before selling long-term care insurance in Colorado?