Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 22-0277.01 Richard Sweetman x4333
HOUSE BILL 22-1111
House Committees Senate Committees
Business Affairs & Labor
A BILL FOR AN ACT
C
ONCERNING INSURANCE COVERAGE FOR INSURED LOSSES INCURRED101
AS A RESULT OF A DECLARED FIRE DISASTER .102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill establishes new coverage requirements for property and
casualty insurance policies issued or renewed in Colorado, which
requirements apply in the event of a loss of a residence as a result of a
declared fire disaster.
The bill also establishes new requirements for insurers who issue
or renew property and casualty insurance policies, which requirements
HOUSE SPONSORSHIP
Amabile,
SENATE SPONSORSHIP
Rankin,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. concern an insurer's handling of policy claims after such a loss occurs.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 10-4-110.8, add (13),2
(14), and (15) as follows:3
10-4-110.8. Homeowner's insurance - prohibited and required4
practices - estimates of replacement value - additional living expense5
coverage - copies of policies - personal property contents coverage -6
inventory of personal property - requirements concerning loss7
scenarios resulting from fire disasters - definitions - rules. (13) I
N8
OFFERING, ISSUING, OR RENEWING A PROPERTY AND CASUALTY INSURANCE9
POLICY IN THIS STATE, AN INSURER SHALL COMPLY WITH THE FOLLOWING10
REQUIREMENTS CONCERNING COVERAGE PROVIDED UNDER THE POLICY TO11
POLICYHOLDERS TO PROTECT THEM FROM DAMAGES THAT OCCUR IN THE12
EVENT OF A LOSS OF A RESIDENCE , INCLUDING THE CONTENTS OF THE13
RESIDENCE AND ANY INSURED OUTBUILDINGS , DWELLING EXTENSIONS,14
AND OTHER STRUCTURES , WHICH LOSS OCCURS AS A RESULT OF A FIRE15
DISASTER THAT IS DECLARED BY FEDERAL, STATE, COUNTY, OR MUNICIPAL16
AUTHORITIES:17
(a) I
N THE EVENT THAT THE POLICYHOLDER ELECTS TO REBUILD18
THE RESIDENCE AT THE SAME LOCATION OR ANOTHER LOCATION , THE19
POLICY SHALL:20
(I) A
LLOW THE POLICYHOLDER AT LEAST TWENTY -FOUR MONTHS21
TO SUBMIT RECEIPTS AND INVOICES FOR THE REPLACEMENT COSTS OF THE22
INSURED RESIDENCE, WHICH PERIOD BEGINS ON THE DATE UPON WHICH23
THE INSURER PROVIDES THE POLICYHOLDER A REASONABLE , ACCURATE,24
AND TIMELY ESTIMATE OF THE ACTUAL CASH VALUE OF THE LOSS ; AND25
HB22-1111-2- (II) PROVIDE THAT, IN ADDITION TO THE PERIOD DESCRIBED IN1
SUBSECTION (13)(a)(I) OF THIS SECTION, THE POLICYHOLDER HAS THE2
OPTION TO TWICE EXTEND SUCH PERIOD BY SIX MONTHS IF THE3
POLICYHOLDER, ACTING IN GOOD FAITH AND WITH REASONABLE4
DILIGENCE, ENCOUNTERS A DELAY OR DELAYS IN RECEIVING NECESSARY5
PERMIT APPROVALS FOR , OR RECONSTRUCTION OF , THE INSURED6
RESIDENCE, WHICH DELAYS ARE BEYOND THE CONTROL OF THE7
POLICYHOLDER. CIRCUMSTANCES BEYOND THE CONTROL OF THE8
POLICYHOLDER INCLUDE UNAVOIDABLE CONSTRUCTION PERMIT DELAYS ,9
A LACK OF NECESSARY CONSTRUCTION MATERIALS , AND THE10
UNAVAILABILITY OF CONTRACTORS TO PERFORM NECESSARY WORK .11
(b) T
HE POLICY MUST INCLUDE ADDITIONAL LIVING EXPENSE12
COVERAGE TO APPLY IN THE EVENT OF SUCH A LOSS . NOTWITHSTANDING13
SUBSECTION (6)(b) OF THIS SECTION, ADDITIONAL LIVING EXPENSE14
COVERAGE MUST BE AVAILABLE FOR A PERIOD OF AT LEAST THIRTY -SIX15
MONTHS, AND THE INSURER SHALL OFFER THE POLICYHOLDER THE16
OPPORTUNITY TO PURCHASE A TOTAL OF FORTY -EIGHT MONTHS OF17
ADDITIONAL LIVING EXPENSE COVERAGE . AN INSURER SHALL ALSO GIVE18
AN APPLICANT AN EXPLANATION OF THE PURPOSE , TERMS, AND COST OF19
THIS COVERAGE.20
(c) T
HE POLICY MUST PROVIDE THAT , NOTWITHSTANDING21
SUBSECTION (11)(c) OF THIS SECTION, THE POLICYHOLDER HAS THIRTY-SIX22
MONTHS TO SUBMIT TO THE INSURER RECEIPTS SHOWING REPLACEMENT23
COSTS FOR PERSONAL PROPERTY , WHICH PERIOD BEGINS ON THE DATE24
UPON WHICH THE INSURER PROVIDES THE POLICYHOLDER THE FIRST25
PAYMENT TOWARD THE ACTUAL CASH VALUE OF THE LOSS .26
(d) T
HE POLICY MUST PROVIDE THAT THE POLICYHOLDER MAY27
HB22-1111
-3- EITHER:1
(I) R
EPLACE THE INSURED RESIDENCE AT THE CURRENT LOCATION2
OR ANOTHER LOCATION, IN EITHER OF WHICH CASE THE CALCULATION OF3
THE REPLACEMENT COST OF THE INSURED RESIDENCE SHALL NOT INCLUDE4
CONSIDERATION OF THE VALUE OF THE LAND UPON WHICH THE5
REPLACEMENT RESIDENCE IS LOCATED ; OR6
(II) U
SE THE PROCEEDS FROM THE POLICY TO PURCHASE AN7
EXISTING RESIDENCE AT A NEW LOCATION .8
(e) T
HE POLICY MUST ALLOW A POLICYHOLDER TO USE PROCEEDS9
RESULTING FROM COVERAGE AGAINST THE LOSS OF OUTBUILDINGS ,10
DWELLING EXTENSIONS, AND OTHER STRUCTURES TO PAY THE COSTS OF A11
REPLACEMENT RESIDENCE .12
(f) W
ITHIN A REASONABLE AMOUNT OF TIME AFTER RECEIVING A13
CLAIM UNDER AN ISSUED POLICY, AN INSURER SHALL:14
(I) E
STABLISH A PRIMARY POINT OF CONTACT FOR THE15
POLICYHOLDER, WHICH PRIMARY POINT OF CONTACT MUST BE A16
PERMANENT DIRECT EMPLOYEE OF THE INSURER AND NOT A CONTRACTED17
TEMPORARY ADJUSTER;18
(II) P
ROVIDE THE POLICYHOLDER AT LEAST ONE MEANS OF DIRECT19
COMMUNICATION WITH THE PRIMARY POINT OF CONTACT DURING REGULAR20
BUSINESS HOURS; AND21
(III) E
NSURE THAT THE PRIMARY POINT OF CONTACT REFERS AND22
TRANSFERS THE POLICYHOLDER AND AN UPDATED CLAIM FILE TO THE23
APPROPRIATE SUPERVISOR WITH CONTROL OVER THE PRIMARY POINT OF24
CONTACT UPON THE REQUEST OF THE POLICYHOLDER .25
(14) I
F A PROPERTY AND CASUALTY INSURANCE POLICYHOLDER26
EXPERIENCES A LOSS OF THE CONTENTS OF A RESIDENCE THAT WAS27
HB22-1111
-4- FURNISHED AT THE TIME OF LOSS, INCLUDING INSURED OUTBUILDINGS ,1
DWELLING EXTENSIONS, AND OTHER STRUCTURES, WHICH LOSS OCCURS AS2
A RESULT OF A FIRE DISASTER THAT IS DECLARED BY FEDERAL , STATE,3
COUNTY, OR MUNICIPAL AUTHORITIES, THE INSURER SHALL:4
(a) N
OTWITHSTANDING SUBSECTION (11)(a) OF THIS SECTION,5
OFFER THE POLICYHOLDER A MINIMUM OF EIGHTY PERCENT , OR A LARGER6
PERCENT BY MUTUAL AGREEMENT OF THE POLICYHOLDER AND INSURER ,7
OF THE VALUE OF THE CONTENTS COVERAGE INDICATED IN THE8
DECLARATION PAGE OF THE POLICY WITHOUT REQUIRING THE9
POLICYHOLDER TO SUBMIT A WRI TTEN INVENTORY OF THE CONTENTS ;10
(b) N
OTIFY THE POLICYHOLDER THAT:11
(I) T
HE MONEY DESCRIBED IN SUBSECTION (14)(a) OF THIS SECTION12
IS OFFERED UNCONDITIONALLY;13
(II) A
DDITIONAL MONEY MAY BE AVAILABLE IF THE14
POLICYHOLDER SUBMITS AN INVENTORY ; AND15
(III) T
HE INSURER IS REQUIRED, PURSUANT TO SUBSECTION (11)(b)16
OF THIS SECTION, TO DISCLOSE ITS METHODOLOGY FOR DETERMINING THE17
DEPRECIATED VALUE OF THE CONTENTS OF INSURED PROPERTY ;18
(c) I
F THE POLICYHOLDER SUBMITS AN INVENTORY OF PERSONAL19
PROPERTY LOSSES IN AN AMOUNT THAT EXCEEDS THE AMOUNT PAID TO20
THE POLICYHOLDER PURSUANT TO SUBSECTION (14)(a) OF THIS SECTION:21
(I)
REQUEST ANY ADDITIONAL INFORMATION CONCERNING THE22
INVENTORY NO LATER THAN THIRTY DAYS AFTER RECEIVING THE23
INVENTORY; AND24
(II)
PROVIDE PAYMENT FOR ANY COVERED ITEMS WITHIN THIRTY25
DAYS AFTER RECEIVING THE INVENTORY ;26
(d) P
ROVIDE PAYMENT FOR COVERED COSTS ASSOCIATED WITH THE27
HB22-1111
-5- REMOVAL OF DEBRIS WITHIN THIRTY DAYS AFTER RECEIVING AN INVOICE ,1
RECEIPT, OR OTHER DOCUMENTATION INDICATING THE DATE AND COST OF2
THE REMOVAL OF THE DEBRIS;3
(e) P
ROVIDE PAYMENT FOR ANY COVERED LOSS OF TREES , SHRUBS,4
AND LANDSCAPING WITHIN THIRTY DAYS AFTER THE INSURER RECEIVES5
DOCUMENTATION OF THE LOSS , SUCH AS DOCUMENTATION FROM A6
REPUTABLE LANDSCAPING COMPANY , SHOWING THE NUMBER AND NATURE7
OF TREES, SHRUBS, AND LANDSCAPING FEATURES DAMAGED OR8
DESTROYED; AND9
(f) R
EIMBURSE THE POLICYHOLDER FOR THE LOSS OF USE OF THE10
INSURED PROPERTY WITHIN TEN DAYS AFTER THE INSURER RECEIVES11
DOCUMENTATION OF THE LOSS , WHICH DOCUMENTATION MAY INCLUDE A12
SIGNED LEASE THAT OBLIGES THE POLICYHOLDER TO PAY FOR TEMPORARY13
REPLACEMENT HOUSING; EXCEPT THAT:14
(I) I
F A POLICYHOLDER PROVIDES A SIGNED LEASE AS15
DOCUMENTATION, THE INSURER MAY REIMBURSE THE POLICYHOLDER IN16
MONTHLY OR OTHER INCREMENTS , IN ACCORDANCE WITH THE TERMS OF17
THE LEASE; AND18
(II) A
LTERNATIVELY, AN INSURER MAY PROVIDE ADVANCE RENT19
PAYMENTS FOR HOUSING FOR THE POLICYHOLDER , FAMILY MEMBERS,20
LIVESTOCK, AND PETS, AS NECESSARY.21
(15) T
HE COMMISSIONER MAY ADOPT RULES AS NECESSARY FOR22
THE IMPLEMENTATION OF THIS SECTION .23
SECTION 2. Act subject to petition - effective date -24
applicability. (1) This act takes effect at 12:01 a.m. on the day following25
the expiration of the ninety-day period after final adjournment of the26
general assembly; except that, if a referendum petition is filed pursuant27
HB22-1111
-6- to section 1 (3) of article V of the state constitution against this act or an1
item, section, or part of this act within such period, then the act, item,2
section, or part will not take effect unless approved by the people at the3
general election to be held in November 2022 and, in such case, will take4
effect on the date of the official declaration of the vote thereon by the5
governor.6
(2) This act applies to the offer, issuance, and renewal of property7
and casualty insurance policies in the state and to the administration of8
claims pursuant to such policies on and after the applicable effective date9
of this act.10
HB22-1111
-7-