Colorado

Colorado specifically regulated home service contracts decades ago but repealed their law. The current exemption is found at CRS 10-3-903(2) (g). The Department of insurance does have a very limited regulation at 3 CCR 702-5, Reg 5-1-12 at (5: Rules)  adopted in 1991. It basically states that a service contract is not insurance as long as a third party uses its own service network providers (a "closed panel") and "There must be no indemnification contracted for by either the administrative unit or the providers of the plan for services or risk contingencies performed by any other entity outside the closed panel." [Our emphasis on "contracted for"] This has not been taken to mean you can never settle for cash in limited circumstances, you simply cannot contract to do provide cash.

The Colorado Department of Regulatory Agencies (DORA); Real Estate Division does have a statutory definition of "preowned home warranty contracts" and prohibits their compulsory purchase. The law also outlines some very basic disclosures that any home service contract provider, in all liklihood, already complies with. See CRS 12-61-602 et seq. [BELOW].  This provision comes up for sunset every few years (2016, 2020)  but is usually extended. 12-61-602, et seq. is scheduled to sunset on July 1, 2020 unless the General Assembly affirmatively re-enacts it.   12-61-611 (See below) states essentially the same thing.

Note: Colorado also has CRS 10-4-1602 covering "Consumer Goods Service Contracts" but exempts out  (f) Home warranty service contracts governed by part 6 of article 61 of title 12, C.R.S.;

Click here for full text of CRS 10-3-903.

Click here for full text of 12-61-602

CRS 12-61-611. Purchase of service contract not to be compulsory
A company selling, offering to sell, or effecting the issuance of a home warranty service contract under this part 6 shall not in any manner require a home buyer or seller, or prospective home buyer or seller, or person refinancing a home to purchase a home warranty service contract.