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Key Person Insurance in Colorado

For a life insurer failure, the published guaranty limit for a policy covering a life in Colorado is $300,000 in death benefits. Ask the broker which insurer will issue the policy and compare its financial strength separately from this limited state safety net. Colorado’s cited provision concerns charitable organizations that own life insurance with the insured’s written consent; it does not itself set a broad employer rule. Ask the carrier to identify the separate Colorado authority it relies on for your employer-owned policy and obtain the insured’s consent in writing. Compare your ownership and insured’s role with Colo. Rev. Stat. § 10-7-115. 4,1

What Is Key Person?

Key person insurance pays the business, not the person’s family, when a founder, partner or employee it relies on dies. Disability, overhead expense and buyout funding are separate products to discuss on their own. Read the national Key person guide.

What to Watch for in Colorado

  • Document the Business Interest

    Colorado’s cited provision concerns charitable organizations that own life insurance with the insured’s written consent; it does not itself set a broad employer rule. Ask the carrier to identify the separate Colorado authority it relies on for your employer-owned policy and obtain the insured’s consent in writing. 1

  • Complete Written Notice and Consent

    Colorado’s statutory rule preserves other insurable interests existing at common law or by statute. Have the carrier document the actual basis for the business’s interest rather than relying on the charitable-organization provision. 2,3

  • Check the State Guaranty Backstop

    NOLHGA’s Colorado entry sets the reported death-benefit protection at $300,000. This is not a limit on the contract; ask the broker how it applies to your employer-owned benefit. Review it alongside the replacement-cost estimate for this insured. For issuance, also check Colo. Rev. Stat. § 10-7-115. 4,5,1

Who Regulates Insurance in Colorado

Colorado Division of Insurance

The Division administers Colorado insurance laws and regulates insurers and insurance producers. You can search producer licenses through Colorado’s official DORA lookup and send insurance complaints to the Division. 6,7,8

Surplus-lines tax and stamping office

Reported tax rate: 3% of net premium When Colorado is the insured’s home state, its surplus-lines tax is 3% of taxable premium. The Colorado Surplus Lines Association says insurer or broker fees charged in connection with the placement are included in the tax base; federal or other-state taxes and examination fees are excluded. For multistate risks, a tax-sharing agreement may allocate premium tax to other states. 9,11,10

Providers With Documented State Licenses

These providers publish a national listing for Key person; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Colorado. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 19

Questions to Ask Before You Buy in Colorado

  1. What Colorado law supports our business’s insurable interest in this person, and what should we retain to prove the role?
  2. What written notice and consent must the insured receive before this policy is issued, and can coverage continue after employment ends?
  3. How would Colorado’s guaranty-association limit apply to this policy and our other business-owned life policies?

Key Person in Colorado: FAQ

How much of a key person life policy is protected if an insurer fails in Colorado? 4,5

A covered life in Colorado has a reported guaranty limit of $300,000. That is an insolvency backstop, not the face amount you can insure. NOLHGA reports an aggregate $5 million limit for one owner’s multiple nongroup life policies. 4,5

Does my business need an employee’s consent for key person insurance in Colorado? 2,3,1

Yes. Federal rules require written notice and consent before issue for the employer-owned life tax exception. Colorado’s statutory rule preserves other insurable interests existing at common law or by statute. Have the carrier document the actual basis for the business’s interest rather than relying on the charitable-organization provision. Ask for a copy of the dated notice before the carrier issues coverage. For state-law details, check Colo. Rev. Stat. § 10-7-115. 2,3,1

Key Person in Other States

Other Coverage in Colorado

Sources

  1. 2024 Colorado Revised Statutes § 10-7-115 — Insurable Interest. State statute (Justia U.S. Codes and Statutes); Colo. Rev. Stat. § 10-7-115. Accessed 2026-09-28.
  2. 26 U.S.C. § 101(j) — Certain employer-owned life insurance contracts. Office of the Law Revision Counsel, U.S. House of Representatives; 26 U.S.C. § 101(j)(2), (4). Accessed 2026-09-28.
  3. Internal Revenue Bulletin 2009-24 — Employer-Owned Life Insurance Contracts. Internal Revenue Service; Notice 2009-48, Q&A 6–7; written notice and consent. Accessed 2026-09-28.
  4. How You’re Protected: Coverage Levels by State. National Organization of Life & Health Insurance Guaranty Associations; Coverage Levels by State; life insurance death benefits; report current as of May 2025. Accessed 2026-09-28.
  5. Life and Health Insurance Guaranty Association Model Act. National Association of Insurance Commissioners; Section 8(A)(2)(d), owner aggregate benefit cap. Accessed 2026-09-28.
  6. Colorado Division of Insurance. Colorado Department of Regulatory Agencies; Official insurance regulator homepage; DOI oversight and consumer resources. Accessed 2026-09-28.
  7. DORA Online Services. Colorado Department of Regulatory Agencies; Official DORA online services portal; select Online License Verification and insurance profession. Accessed 2026-09-28.
  8. File a Complaint. Colorado Division of Insurance; Official form and instructions for insurance complaints. Accessed 2026-09-28.
  9. HB23-1111: Unauthorized Insurance Premium Tax Rate. Colorado General Assembly; Enacted bill harmonizes unauthorized insurance tax rate at 3%, effective January 1, 2024; parity with surplus-lines rate. Accessed 2026-09-28.
  10. Frequently Asked Questions. Surplus Lines Association of Colorado; FAQ: Colorado home-state tax; fee charged by insurer or broker in connection with placement included in premium base; qualifying federal/other-state taxes and examination fees excluded; commercial exempt policyholder due-diligence exception. Accessed 2026-09-28.
  11. Colorado Revised Statutes, Title 10 (2024). Colorado General Assembly, Office of Legislative Legal Services; C.R.S. § 10-5-111.5, surplus-lines premium tax and home-state application. Accessed 2026-09-28.
  12. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  13. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  14. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  15. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  16. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  17. About Risklytics. Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16.
  18. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  19. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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