SB 17-274

Senate Bill 17-274 allows nonadmitted insurance companies to offer disability insurance alongside property and casualty insurance. This means that if you can't find a disability insurance policy from an admitted insurer (a company licensed in Colorado), you can now get it from a nonadmitted insurer, as long as the policy only provides income replacement for individuals who become disabled and doesn’t cover medical diagnosis or treatment of disabilities. The bill has been signed into law, so these changes are now effective and available to consumers seeking disability insurance coverage that isn't offered by traditional insurers in Colorado.

Official Summary

Current law allows nonadmitted insurers to offer only property and casualty insurance as types of surplus lines insurance. The bill: Defines 'disability insurance' as insurance that is in excess of policy limits available from an admitted insurer, provides income replacement to an insured who becomes an individual with a disability while covered by a policy, and does not provide coverage for the diagnosis or treatment of an insured's disability; and Allows nonadmitted insurers to offer disability insurance as a type of surplus lines insurance.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Votes