Groundbreaking Shift in Colorado Insurance Policy Regulations
In a bold move that challenges traditional insurance industry practices, a pivotal change in Colorado insurance regulations has occured, now permitting the assignment of post-loss claims regardless of restrictive anti-assignment clauses typically embedded in insurance policies.
Traditionally, insurance policies come armed with language akin to a fortress wall, explicitly forbidding the insured from assigning their rights and benefits under the policy without the insurer’s explicit consent. These anti-assignment clauses are designed to prevent the transfer of an insurance policy’s benefits to a third party without the approval of the insurance company. The language often reads something like this: