December 3, 2024
Division releases annual Complaint and Recoveries Report.
DENVER – Today the Colorado Division of Insurance (DOI), part of the Department of Regulatory Agencies (DORA), released its FY 2023-24 Annual Complaint and Recoveries Report(opens in new window). The report not only details the $26.4 million the DOI recovered for Coloradans, but also breaks down the number of complaints taken, while providing actual consumers’ stories on how the DOI helped with their insurance issues.
The DOI recovered $26,487,192 for Coloradans in the last fiscal year – FY 2023-24 (July 2023 – June 2024) – – increasing by $5 million or approximately 20% over last year. This included:
$19,253,299 Total Recovered on Property & Casualty Insurance Complaints
$10,601,710 recovered on homeowners insurance complaints
$4,995,340 recovered on auto insurance complaints
$7,232,430 Total Recovered on Life & Health Insurance Complaints
$4,080,002 recovered on health insurance complaints
$3,152,428 recovered on life insurance and annuity complaints
“Our Consumer Services Team works tirelessly to get the people of Colorado the support they need,” said Colorado Insurance Commissioner Michael Conway. “Improper delays, poor service and incorrectly denied claims cause unnecessary stress for consumers, and I encourage anyone who has questions about their insurance to contact our Consumer Services Team.”
The report illustrates some of the actual stories behind these recoveries.
Apartment Complex Owners Received $2,657,730 in Hail Damage Claims – The owners of an apartment complex filed a complaint after an extensive delay. The DOI was able to get the insurance company to pay the settlement quickly, resulting in $2.6 million to repair the complex.
Policy Holder Receives Additional $122,197 in Coverage – A consumer who had been impacted by the Marshall Fire filed a complaint as their insurance company had not remediated smoke damage to their home. The DOI’s involvement prompted the company to pay an additional $122,197 to properly clean the home.
$2,000,000 Delayed Life Insurance Payout Secured – The DOI’s investigation led to an immediate payout from the insurance company of $2,000,000, plus over $14,000 in interest for the delay.
Recoveries are important, but the DOI’s Consumer Services Team also works to answer people’s questions and help Coloradans better understand their insurance and help them file complaints when something goes wrong. The Team received nearly 7,000 complaints and inquiries last year, while fielding over 14,000 calls from consumers ranging from simple questions about claims and policies to more involved topics about insurance laws and regulations. The Team also helps consumers with questions about submitting formal complaints.
The Consumer Services Team is often the first point of contact for consumers looking for help. The Team investigates each individual complaint, but they also work to identify trends and systemic issues facing consumers, allowing them to dig deeper into the problems at hand. Top identified issues included:
Homeowner Education – About 35% of homeowners insurance related calls were about affordability, availability and non-renewals of homeowners insurance. The Team educates each consumer about factors that lead to premium increases and offers suggestions on ways to lower premiums.
Out-of-Network Labs – The Team has seen an uptick in complaints about physicians sending blood draws and other lab work to out-of-network labs. The DOI is currently working with insurance companies to address this challenge and ensure members’ labs are being sent to in-network providers by their contracted care teams.
Long-Term Care Insurance – Our Team has received many questions about Long-Term Care (LTC) and has worked to educate consumers in interpreting their policies and determining payouts.
Source: Colorado Division of Insurance
https://doi.colorado.gov/news-releases-consumer-advisories/report-colorado-division-of-insurance-puts-264-million-back-in
