by John Darer CLU ChFC MSSC RSP CLTC
The Colorado General Assembly Digest of Bills for 2010 includes something of interest to those in the structured settlement planning profession. The purpose of this post is to share information with those individuals. This author does not sell to, solicit or induce structured settlement professionals to purchase any form of insurance in Colorado.
Quoting directly from the Colorado government publication which was disseminated to this author by Google alert:
"S.B. 10-49 Liability limits - life and health insurance protection association - increase of limits for annuity and structured settlement annuity benefits and long-term care benefits. Current law establishes the life and health insurance protection association (association) to pay benefits to an eligible person whose insurer, that is a member of the association, becomes insolvent and cannot pay benefits. Under current law, with regard to annuities and structured settlement annuities, the benefits for which the association may become liable are capped at $100,000 in the present value of annuity benefits. The current limit for health insurance benefits, which applies to long-term care benefits, is also $100,000.
The annuity and structured settlement annuity benefits limits are increased to $250,000, and the limit applicable to long-term care benefits is increased to $300,000.
APPROVED by Governor March 5, 2010
EFFECTIVE March 5, 2010"
Note that it is illegal to advertise the association in conjunction with sale, solicitation of inducement to purchase any form of insurance (see below) §10-20-119 “Prohibited advertisement of association article in insurance sales--notice to policyholders” (1) No person, including an insurer, agent, or affiliate of an insurer, shall make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly to be made, published, disseminated, circulated, or placed before the public, in any newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio station or television station, or in any other way, any advertisement, announcement, or statement, written or oral, which uses the existence of the life and health insurance protection association for the purpose of sales, solicitation, or inducement to purchase any form of insurance covered by the "Life and Health Insurance Protection Association Act". However, this § shall not apply to the association or any other entity which does not sell or solicit insurance.