HB 24-1440

House Bill 24-1440, which has been signed into law in Colorado, changes how insurance companies must communicate with policyholders who speak Spanish. Starting January 1, 2026, personal auto insurance companies will need to provide a summary document in Spanish that explains the coverages and exclusions of the policy. This applies only if the insured person requests it or if the insurer chooses to offer it to everyone. If an insurance company doesn’t follow this rule, policyholders can avoid penalties like mandatory coverage rejections and may get their legal fees covered. The law also adds a Spanish-speaking consumer representative to the Consumer Insurance Council to help ensure better communication for non-English speakers in the insurance market.

Official Summary

The act repeals requirements for insurers that issue commercial and personal automobile, homeowners, and renters insurance policies to provide certain policy documents in an insured's selected language of choice and instead requires insurers that issue personal automobile insurance policies in the state (insurers), starting January 1, 2026, to: Provide to insureds who have completed a language selection form or, at the option of the insurer, to all insureds a summary document that is in Spanish, that is in a form specified by the commissioner of insurance (commissioner) by rule, that explains the coverages and exclusions under the policy and that specifies the coverages and exclusions the insured selected and rejected; and Offer insureds or applicants for insurance a form to select to receive the summary document. If an insurer fails to comply with the requirements of the act, the insured may elect to void any mandatory coverage rejections or exclusions in the automobile insurance policy, may recover reasonable attorney fees and costs incurred for reinstating or rewriting the coverage, and is not required to pay any premium for the policy period applicable for the reinstated or rewritten coverage. Additionally, the act includes on the consumer insurance council a consumer whose first language is not English and requires the commissioner to work with councils established within the division of insurance to engage with bilingual insurance brokers regarding the insurance market for non-English-speaking consumers. APPROVED by Governor May 31, 2024 EFFECTIVE May 31, 2024(Note: This summary applies to this bill as enacted.)

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