Allstate Bans Spanish-Language Insurance Sales in Colorado After Translation Requirement
Allstate has announced that it will ban its agents in Colorado from conducting business in languages other than English.
This decision comes as a response to House Bill 23-1004, which mandates insurance companies must provide policy documents in the language they advertise in. Allstate plans to comply with the law by only advertising and selling insurance in English, effectively excluding potential non-English speaking customers from being insured.
The company sent an email to its agents and managers stating, "Because Allstate policy documents are written in English, we will begin advertising, quoting and selling only in English to comply with this state law. You are only authorized to advertise, prospect, quote or sell property and casualty policies on behalf of Allstate in English. This activity in any other language on behalf of Allstate is no longer authorized."
As a result, Spanish versions of Allstate agency websites and automated Spanish options for phone calls will no longer be available to Colorado customers.
The company's interpretation of the law contradicts the intentions of the bill's sponsors, who presented it as a language access policy. Representative Elizabeth Velasco, the author of the legislation, expressed her frustration with Allstate's decision, stating, "It's infuriating. We're telling them that there's a gap, and their initial reaction is to make it worse. The intent was that these documents get translated into the language of the community."
Velasco's bill aimed to address the needs of Colorado's diverse population, as about one in six residents speak a language other than English at home, with the majority speaking Spanish. However, Allstate's now necessary ban on non-English sales and advertisements undermines the goal of language accessibility.
Carole Walker, the executive director of the Rocky Mountain Insurance Information Association, raised concerns about the consequences of the legislation. She argued that it would be impossible for insurers to translate all the necessary documents by the deadline of January 1, 2024. Walker noted that translating documents into just Spanish can take between two and four years.
Walker further explained that insurance contracts are complex, regardless of the language they are in, and that agents and call centers play a crucial role in helping consumers understand and choose appropriate coverage. She warned that limiting agents' ability to reach out to non-English speaking communities could lead to bad actors taking advantage of these individuals, leaving them with subpar and expensive coverage.
The Rocky Mountain Insurance Information Association is urging for a delay in the deadline, possibly until 2026, to allow insurers more time to meet the translation requirements.
Walker emphasized that there has never been evidence of harm to non-English speaking customers, as they are already being served by insurance companies.
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Despite the concerns legislators, the calendar for the upcoming legislative session is already packed, making it unlikely that the law will be revisited in the near future. The Department of Insurance issued an emergency regulation in October to provide clarity on the bill, but it remains to be seen how the situation will unfold.
Allstate's decision to ban non-English sales and advertisements has sparked debate about the unintended consequences of well-intentioned legislation. As the deadline for compliance with the translation requirement approaches, the insurance industry and lawmakers will need to find a solution that balances accessibility, practicality, and actual need.