Life insurance in Colorado

How your policy is protected if an insurer fails

Colorado's guaranty association goes by a different name: the Colorado Life & Health Insurance Protection Association. The legislature created it under the Life and Health Insurance Protection Association Act, which took effect July 1, 1991. Its members are the more than 1,000 insurers licensed to sell life insurance, health insurance or annuities in Colorado. When a member becomes insolvent, the association assesses the others and uses the money to pay Colorado residents' covered claims. The policy does not have to have been bought in Colorado, but the insurer must have been licensed here. Keep paying premiums if your insurer is in trouble.

Limits from the association's own FAQ, as of October 4, 2026, consistent with NOLHGA's national chart (as of June 1, 2025):

Each payee of a structured settlement annuity is covered up to $250,000 in present value. Unallocated annuities are not covered, and neither are failures declared before July 1, 1991. Any value above the limits becomes a claim against the failed insurer's estate.

The association is a nonprofit made up of insurance companies, not a government agency. It cannot cancel your policy, discuss your claims or rate a solvent company. Guaranty protection is a backstop with real limits, not a reason to choose a weaker insurer. Most states also forbid agents from using it as a sales pitch. See state life and health guaranty associations and what happens if your life insurance company fails.

Who regulates life insurance in Colorado

The Colorado Division of Insurance, part of the Department of Regulatory Agencies, licenses insurers and agents, monitors company finances, approves products and investigates consumer complaints. It publishes complaint reports and disciplinary actions against agents and companies, which are worth checking before you buy.

Free look, grace periods and policy rules

• Free look: C.R.S. § 10-7-302(1)(g) requires a notice on the first page of every life policy giving you 15 days after delivery to return it for a full premium refund, for any reason. For variable life, the refund is the account value plus fees deducted. Many states set 10 days. A replacement policy gets 30 days under Colorado's replacement regulation, according to the NAIC. See the free-look period: returning a policy for a refund.
• Grace period: C.R.S. § 10-7-102(1)(i) requires a grace period of one month, not less than 30 days, for every premium after the first year. Coverage continues, and an unpaid premium can be deducted if the insured dies during the grace period.
• Suicide clause: under C.R.S. § 10-7-109, suicide is no defense to paying a life policy after the first policy year. Most states allow insurers a two-year exclusion.
• Interest on death claims: C.R.S. § 10-7-112 requires interest on death benefits from the date of death. The rate is at least the insurer's rate on proceeds left on deposit until 30 days after the insurer receives a complete claim with proof of death. After that it is two percentage points above the federal discount rate until paid. If the claim is denied and the beneficiary wins in court, the rate is four points above the discount rate from the date suit was filed.

Taxes, estates and community property

Colorado has no state estate tax and no inheritance tax. The federal estate tax exclusion is $15,000,000 per person in 2026, according to the IRS. Colorado is not a community property state, so the beneficiary designation on the policy generally controls.

Finding a lost policy or unclaimed benefits

The Division of Insurance points consumers to the free NAIC Life Insurance Policy Locator. Participating insurers search for policies on a deceased person and contact the beneficiary if they find one. Then search the Colorado Treasury's Great Colorado Payback, which holds life insurance proceeds that insurers could not deliver. Claiming is free. More tips: how to find a lost life insurance policy and unclaimed life insurance money and state unclaimed property.

Life insurers based in Colorado

Empower is based in Greenwood Village. Empower is best known for workplace retirement plans; it and Canada Life are both owned by Great-West Lifeco.

Where to get help

• Colorado Division of Insurance: 303-894-7499, or 800-930-3745 toll-free outside the Denver area; 1560 Broadway, Suite 1300, Denver, CO 80202; doi.colorado.gov.
• File a complaint: use the division's online complaint page, where you can also check the status of an existing complaint. Contact the insurer first, then attach your policy, letters and claim documents. See how to file a complaint against a life insurer.
• Guaranty association: Colorado Life & Health Insurance Protection Association, 800-337-7796. Its administrative office is at 201 Robert S. Kerr Avenue, Suite 300, Oklahoma City, OK 73102.

Neighboring states: Wyoming, Nebraska, Kansas, Oklahoma, New Mexico and Utah.