SB 06-089 modifies insurance section established by SB 05-100

As you already know, SB 06-089 has moved out of the Senate and on to the House for review. Section 16 of the bill has remained substantially intact since the bill's introduction and readdresses C.R.S. 10-4-110.8(5), regarding homeowner's insurance.

SB 05-100 previously modified this portion of the statute to read:

In a common interest community, as defined in section 38-33.3-103(8), C.R.S., a unit owner may file a claim against the policy of the unit owner's association to the same extent, and with the same effect, as if the unit owner were an additional named insured.

This provision went into effect on January 1, 2006.

SB 06-089 has revised this section to include a process that must be followed by the homeowner prior to filing a claim against the association's insurance policy. In addition, a provision prohibits association insurers from considering homeowners' requests for clarification of coverage when determining premiums. The language of this Section as it moved out of the Senate reads as follows:

(a)In a common interest community, as defined in Section 38-33.3-103(8), C.R.S., a unit owner may file a claim against the policy of the unit owner's association to the same extent, and with the same effect, as if the unit owner were a named insured if the following conditions are met:

(I)The unit owner has contacted the executive board or the Association's managing agent in writing, and in accordance with any applicable policies or procedures for owner-initiated insurance claims, regarding the subject matter of the claim;
(II)The unit owner has given the association at least fifteen days to respond in writing, and, if so requested, has given the association's agent a reasonable opportunity to inspect the damage; and
(III)The subject matter of the claim falls within the association's insurance responsibilities as defined by the declaration or in an insurance policy listed pursuant to Section 38-33.3-209.4(2)(f), C.R.S.

(b)The association's insurer, when determining premiums to be charged to the association, shall not take into account any request by a unit owner for a clarification of coverage.


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