Colorado 2022 Regular Session

Colorado House Bill HB1111 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	Second Regular Session
	2	+	Seventy-third General Assembly
	3	+	STATE OF COLORADO
	4	+	REREVISED
	5	+	This Version Includes All Amendments
	6	+	Adopted in the Second House
	7	+	LLS NO. 22-0277.01 Richard Sweetman x4333
1	8		HOUSE BILL 22-1111
2		-	BY REPRESENTATIVE(S) Amabile, Benavidez, Bernett, Bird,
3		-	Boesenecker, Caraveo, Cutter, Duran, Esgar, Exum, Froelich,
4		-	Gonzales-Gutierrez, Gray, Hooton, Jodeh, Kipp, Lindsay, Lontine, Lynch,
5		-	McCluskie, McCormick, McLachlan, Roberts, Sirota, Snyder, Titone,
6		-	Valdez A., Valdez D., Weissman, Young, Garnett, Bacon, Daugherty,
7		-	Herod, Michaelson Jenet, Ortiz, Ricks, Sullivan;
8		-	also SENATOR(S) Rankin and Fenberg, Bridges, Buckner, Coleman,
9		-	Coram, Danielson, Donovan, Fields, Ginal, Gonzales, Hansen, Hinrichsen,
10		-	Hisey, Jaquez Lewis, Kolker, Lee, Moreno, Pettersen, Priola, Simpson,
11		-	Sonnenberg, Story, Winter, Woodward, Zenzinger.
	9	+	House Committees Senate Committees
	10	+	Business Affairs & Labor Business, Labor, & Technology
	11	+	Appropriations Appropriations
	12	+	A BILL FOR AN ACT
12	13		C
13		-	ONCERNING INSURANCE COVERAGE FOR INSURED LOSSES INCURRED AS A
14		-	RESULT OF A DECLARED FIRE DISASTER
15		-	, AND, IN CONNECTION
16		-	THEREWITH
17		-	, MAKING AN APPROPRIATION.
18		-
19		-	Be it enacted by the General Assembly of the State of Colorado:
20		-	SECTION 1. In Colorado Revised Statutes, 10-4-110.8, amend (3)
21		-	introductory portion and (3)(g); and add (3)(h), (3)(i), (13), (14), and (15)
22		-	as follows:
23		-	10-4-110.8. Homeowner's insurance - prohibited and required
24		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
25		-	officers and the Governor. To determine whether the Governor has signed the bill
26		-	or taken other action on it, please consult the legislative status sheet, the legislative
27		-	history, or the Session Laws.
28		-	________
29		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
30		-	through words or numbers indicate deletions from existing law and such material is not part of
31		-	the act. practices - estimates of replacement value - additional living expense
32		-	coverage - copies of policies - personal property contents coverage -
33		-	inventory of personal property - requirements concerning total loss
34		-	scenarios resulting from wildfire disasters - definitions - rules. (3) For
35		-	the purposes of AS USED in this section, unless the context otherwise
36		-	requires:
37		-	(g) "Recoverable depreciation" means the difference between the
38		-	cost to replace insured property and the actual cash value of the
39		-	property. (I) "OWNER-OCCUPIED RESIDENCE" MEANS A RESIDENCE THAT IS
40		-	OCCUPIED PRIMARILY FOR THE USE OF THE OWNER AND THE OWNER
41		-	'S
42		-	DESIGNEES
43		-	.
44		-	(II) "O
45		-	WNER-OCCUPIED RESIDENCE" INCLUDES, BUT IS NOT LIMITED
46		-	TO
47		-	, AN OWNER-OCCUPIED PRIMARY RESIDENCE .
48		-	(III) "O
49		-	WNER-OCCUPIED RESIDENCE" DOES NOT INCLUDE ANY
50		-	PROPERTY THAT IS INSURED UNDER A COMMERCIAL INSURANCE OR
51		-	AGRIBUSINESS POLICY
52		-	.
53		-	(h) "R
54		-	ECOVERABLE DEPRECIATION " MEANS THE DIFFERENCE
55		-	BETWEEN THE COST TO REPLACE INSURED PROPERTY AND THE ACTUAL CASH
56		-	VALUE OF THE PROPERTY
57		-	.
58		-	(i) "W
59		-	ILDFIRE" MEANS A RAPIDLY SPREADING FIRE THAT IS DIFFICULT
60		-	TO BRING UNDER CONTROL IN AN AREA THAT INCLUDES COMBUSTIBLE
61		-	VEGETATION
62		-	, SUCH AS TREES, GRASS, BRUSH, OR BUSHES, WHICH FIRE
63		-	CAUSES WIDESPREAD OR SEVERE DAMAGE TO PROPERTY
64		-	, REGARDLESS OF
65		-	THE ORIGINAL SOURCE OF IGNITION OF THE FIRE
66		-	.
67		-	(13) I
68		-	N OFFERING, ISSUING, OR RENEWING A HOMEOWNERS
69		-	INSURANCE POLICY IN THIS STATE
70		-	, AN INSURER SHALL COMPLY WITH THE
71		-	FOLLOWING MINIMUM REQUIREMENTS CONCERNING COVERAGE PROVIDED
72		-	UNDER THE POLICY TO POLICYHOLDERS TO PROTECT THEM FROM DAMAGES
73		-	THAT OCCUR IN THE EVENT OF A TOTAL LOSS OF AN OWNER
74		-	-OCCUPIED
75		-	RESIDENCE
76		-	, INCLUDING THE CONTENTS OF THE OWNER-OCCUPIED RESIDENCE,
77		-	WHICH LOSS OCCURS AS A RESULT OF A WILDFIRE DISASTER THAT THE
78		-	GOVERNOR DECLARES PURSUANT TO SECTION
79		-	24-33.5-704:
80		-	(a) A
81		-	POLICY OF HOMEOWNERS INSURANCE MAY NOT LIMIT OR DENY
82		-	PAGE 2-HOUSE BILL 22-1111 A PAYMENT OF THE BUILDING CODE UPGRADE COST OR A PAYMENT OF ANY
83		-	EXTENDED REPLACEMENT COST AVAILABLE UNDER THE POLICY COVERAGE
84		-	FOR A POLICYHOLDER
85		-	'S STRUCTURE THAT WAS A TOTAL LOSS ON THE BASIS
86		-	THAT THE POLICYHOLDER DECIDED TO REBUILD IN A NEW LOCATION OR TO
87		-	PURCHASE AN EXISTING STRUCTURE IN A NEW LOCATION IF THE POLICY
88		-	OTHERWISE COVERS THE REPLACEMENT COST OR BUILDING CODE UPGRADE
89		-	COST
90		-	; EXCEPT THAT THE MEASURE OF INDEMNITY MAY NOT EXCEED THE
91		-	REPLACEMENT COST
92		-	, INCLUDING THE UPGRADE COSTS AND EXTENDED
93		-	REPLACEMENT COST FOR REPAIRING
94		-	, REBUILDING, OR REPLACING THE
95		-	STRUCTURE AT THE ORIGINAL LOCATION OF THE LOSS
96		-	.
97		-	(b) I
98		-	F A POLICY OF HOMEOWNERS INSURANCE REQUIRES A
99		-	POLICYHOLDER TO REPAIR
100		-	, REBUILD, OR REPLACE DAMAGED OR LOST
101		-	PROPERTY IN ORDER TO COLLECT THE FULL REPLACEMENT COST FOR THE
102		-	PROPERTY
103		-	, THE INSURER, SUBJECT TO THE POLICY LIMITS, SHALL:
104		-	(I) A
105		-	LLOW THE POLICYHOLDER AT LEAST THIRTY -SIX MONTHS TO
106		-	SUBMIT RECEIPTS AND INVOICES FOR THE REPLACEMENT COSTS OF THE
107		-	INSURED OWNER
108		-	-OCCUPIED RESIDENCE, WHICH PERIOD BEGINS ON THE DATE
109		-	UPON WHICH THE INSURER PROVIDES THE INITIAL PAYMENT TOWARD THE
110		-	ACTUAL CASH VALUE OF THE DAMAGE OR LOSS
111		-	; AND
112		-	(II) PROVIDE THAT, IN ADDITION TO THE PERIOD DESCRIBED IN
	14	+	ONCERNING INSURANCE COVERAGE FOR INSURED LOSSES INCURRED101
	15	+	AS A RESULT OF A DECLARED FIRE
	16	+	DISASTER, AND, IN102
	17	+	CONNECTION THEREWITH , MAKING AN APPROPRIATION .103
	18	+	Bill Summary
	19	+	(Note: This summary applies to this bill as introduced and does
	20	+	not reflect any amendments that may be subsequently adopted. If this bill
	21	+	passes third reading in the house of introduction, a bill summary that
	22	+	applies to the reengrossed version of this bill will be available at
	23	+	http://leg.colorado.gov
	24	+	.)
	25	+	The bill establishes new coverage requirements for property and
	26	+	casualty insurance policies issued or renewed in Colorado, which
	27	+	requirements apply in the event of a loss of a residence as a result of a
	28	+	declared fire disaster.
	29	+	The bill also establishes new requirements for insurers who issue
	30	+	SENATE
	31	+	3rd Reading Unamended
	32	+	April 20, 2022
	33	+	SENATE
	34	+	Amended 2nd Reading
	35	+	April 19, 2022
	36	+	HOUSE
	37	+	3rd Reading Unamended
	38	+	March 16, 2022
	39	+	HOUSE
	40	+	Amended 2nd Reading
	41	+	March 15, 2022
	42	+	HOUSE SPONSORSHIP
	43	+	Amabile, Bacon, Benavidez, Bernett, Bird, Boesenecker, Caraveo, Cutter, Duran, Esgar,
	44	+	Exum, Froelich, Garnett, Gonzales-Gutierrez, Gray, Hooton, Jodeh, Kipp, Lindsay, Lontine,
	45	+	Lynch, McCluskie, McCormick, McLachlan, Roberts, Sirota, Snyder, Titone, Valdez A.,
	46	+	Valdez D., Weissman, Young
	47	+	SENATE SPONSORSHIP
	48	+	Rankin and Fenberg, Bridges, Buckner, Coleman, Coram, Danielson, Donovan, Fields,
	49	+	Ginal, Gonzales, Hansen, Hinrichsen, Hisey, Jaquez Lewis, Kolker, Lee, Moreno, Pettersen,
	50	+	Priola, Simpson, Sonnenberg, Story, Winter, Woodward, Zenzinger
	51	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	52	+	Capital letters or bold & italic numbers indicate new material to be added to existing statute.
	53	+	Dashes through the words indicate deletions from existing statute. or renew property and casualty insurance policies, which requirements
	54	+	concern an insurer's handling of policy claims after such a loss occurs.
	55	+	Be it enacted by the General Assembly of the State of Colorado:1
	56	+	SECTION 1. In Colorado Revised Statutes, 10-4-110.8, amend2
	57	+	(3) introductory portion and (3)(g); and add (3)(h), (3)(i), (13), (14), and3
	58	+	(15) as follows:4
	59	+	10-4-110.8. Homeowner's insurance - prohibited and required5
	60	+	practices - estimates of replacement value - additional living expense6
	61	+	coverage - copies of policies - personal property contents coverage -7
	62	+	inventory of personal property - requirements concerning total loss8
	63	+	scenarios resulting from wildfire disasters - definitions - rules.9
	64	+	(3) For the purposes of AS USED in this section, unless the context10
	65	+	otherwise requires:11
	66	+	(g) "Recoverable depreciation" means the difference between the12
	67	+	cost to replace insured property and the actual cash value of the13
	68	+	property. (I) "OWNER-OCCUPIED RESIDENCE" MEANS A RESIDENCE THAT14
	69	+	IS OCCUPIED PRIMARILY FOR THE USE OF THE OWNER AND THE OWNER 'S15
	70	+	DESIGNEES.16
	71	+	(II) "OWNER-OCCUPIED RESIDENCE" INCLUDES, BUT IS NOT17
	72	+	LIMITED TO, AN OWNER-OCCUPIED PRIMARY RESIDENCE .18
	73	+	(III) "OWNER-OCCUPIED RESIDENCE" DOES NOT INCLUDE ANY19
	74	+	PROPERTY THAT IS INSURED UNDER A COMMERCIAL INSURANCE OR20
	75	+	AGRIBUSINESS POLICY.21
	76	+	(h) "RECOVERABLE DEPRECIATION" MEANS THE DIFFERENCE22
	77	+	BETWEEN THE COST TO REPLACE INSURED PROPERTY AND THE ACTUAL23
	78	+	CASH VALUE OF THE PROPERTY.24
	79	+	(i) "WILDFIRE" MEANS A RAPIDLY SPREADING FIRE THAT IS25
	80	+	1111-2- DIFFICULT TO BRING UNDER CONTROL IN AN AREA THAT INCLUDES1
	81	+	COMBUSTIBLE VEGETATION, SUCH AS TREES, GRASS, BRUSH, OR BUSHES,2
	82	+	WHICH FIRE CAUSES WIDESPREAD OR SEVERE DAMAGE TO PROPERTY ,3
	83	+	REGARDLESS OF THE ORIGINAL SOURCE OF IGNITION OF THE FIRE .4
	84	+	(13) IN OFFERING, ISSUING, OR RENEWING A HOMEOWNERS5
	85	+	INSURANCE POLICY IN THIS STATE, AN INSURER SHALL COMPLY WITH THE6
	86	+	FOLLOWING MINIMUM REQUIREMENTS CONCERNING COVERAGE PROVIDED7
	87	+	UNDER THE POLICY TO POLICYHOLDERS TO PROTECT THEM FROM DAMAGES8
	88	+	THAT OCCUR IN THE EVENT OF A TOTAL LOSS OF AN OWNER -OCCUPIED9
	89	+	RESIDENCE, INCLUDING THE CONTENTS OF THE OWNER-OCCUPIED10
	90	+	RESIDENCE, WHICH LOSS OCCURS AS A RESULT OF A WILDFIRE DISASTER11
	91	+	THAT THE GOVERNOR DECLARES PURSUANT TO SECTION 24-33.5-704:12
	92	+	(a) A POLICY OF HOMEOWNERS INSURANCE MAY NOT LIMIT OR13
	93	+	DENY A PAYMENT OF THE BUILDING CODE UPGRADE COST OR A PAYMENT14
	94	+	OF ANY EXTENDED REPLACEMENT COST AVAILABLE UNDER THE POLICY15
	95	+	COVERAGE FOR A POLICYHOLDER 'S STRUCTURE THAT WAS A TOTAL LOSS16
	96	+	ON THE BASIS THAT THE POLICYHOLDER DECIDED TO REBUILD IN A NEW17
	97	+	LOCATION OR TO PURCHASE AN EXISTING STRUCTURE IN A NEW LOCATION18
	98	+	IF THE POLICY OTHERWISE COVERS THE REPLACEMENT COST OR BUILDING19
	99	+	CODE UPGRADE COST; EXCEPT THAT THE MEASURE OF INDEMNITY MAY20
	100	+	NOT EXCEED THE REPLACEMENT COST, INCLUDING THE UPGRADE COSTS21
	101	+	AND EXTENDED REPLACEMENT COST FOR REPAIRING, REBUILDING, OR22
	102	+	REPLACING THE STRUCTURE AT THE ORIGINAL LOCATION OF THE LOSS .23
	103	+	(b) IF A POLICY OF HOMEOWNERS INSURANCE REQUIRES A24
	104	+	POLICYHOLDER TO REPAIR, REBUILD, OR REPLACE DAMAGED OR LOST25
	105	+	PROPERTY IN ORDER TO COLLECT THE FULL REPLACEMENT COST FOR THE26
	106	+	PROPERTY, THE INSURER, SUBJECT TO THE POLICY LIMITS, SHALL:27
	107	+	1111
	108	+	-3- (I) ALLOW THE POLICYHOLDER AT LEAST THIRTY -SIX MONTHS TO1
	109	+	SUBMIT RECEIPTS AND INVOICES FOR THE REPLACEMENT COSTS OF THE2
	110	+	INSURED OWNER-OCCUPIED RESIDENCE, WHICH PERIOD BEGINS ON THE3
	111	+	DATE UPON WHICH THE INSURER PROVIDES THE INITIAL PAYMENT TOWARD4
	112	+	THE ACTUAL CASH VALUE OF THE DAMAGE OR LOSS ; AND5
	113	+	(II) P
	114	+	ROVIDE THAT, IN ADDITION TO THE PERIOD DESCRIBED IN6
113	115		SUBSECTION
114		-	(13)(b)(I) OF THIS SECTION, THE POLICYHOLDER HAS THE
115		-	OPTION TO TWICE EXTEND SUCH PERIOD BY SIX MONTHS IF THE
116		-	POLICYHOLDER
117		-	, ACTING IN GOOD FAITH AND WITH REASONABLE DILIGENCE ,
118		-	ENCOUNTERS UNAVOIDABLE DELAYS IN OBTAINING A CONSTRUCTION
119		-	PERMIT
120		-	, LACKS NECESSARY CONSTRUCTION MATERIALS , LACKS AVAILABLE
121		-	CONTRACTORS TO PERFORM NECESSARY WORK
122		-	, OR ENCOUNTERS OTHER
123		-	CIRCUMSTANCES BEYOND THE POLICYHOLDER
124		-	'S CONTROL. THIS SUBSECTION
125		-	(13)(b)(II) DOES NOT PROHIBIT AN INSURER FROM ALLOWING A
126		-	POLICYHOLDER ADDITIONAL TIME TO COLLECT THE FULL REPLACEMENT COST
127		-	FOR LOST OR DAMAGED PROPERTY OR FOR ADDITIONAL LIVING EXPENSES
128		-	.
129		-	(c) T
130		-	HE POLICY MUST INCLUDE ADDITIONAL LIVING EXPENSE
131		-	COVERAGE TO APPLY IN THE EVENT OF SUCH A LOSS
132		-	. NOTWITHSTANDING
133		-	SUBSECTION
134		-	(6)(b) OF THIS SECTION, ADDITIONAL LIVING EXPENSE
135		-	COVERAGE MUST BE AVAILABLE FOR A PERIOD OF AT LEAST TWENTY
136		-	-FOUR
137		-	MONTHS
138		-	, AND THE INSURER SHALL OFFER THE POLICYHOLDER THE
139		-	OPPORTUNITY TO TWICE EXTEND SUCH PERIOD BY SIX MONTHS IF THE
140		-	PAGE 3-HOUSE BILL 22-1111 POLICYHOLDER, ACTING IN GOOD FAITH AND WITH REASONABLE DILIGENCE ,
141		-	ENCOUNTERS A DELAY OR DELAYS IN RECEIVING NECESSARY PERMIT
142		-	APPROVALS FOR
143		-	, OR RECONSTRUCTION OF, THE INSURED OWNER-OCCUPIED
144		-	RESIDENCE
145		-	, WHICH DELAYS ARE BEYOND THE CONTROL OF THE
146		-	POLICYHOLDER
147		-	.
148		-	(d) T
149		-	HE POLICY MUST PROVIDE THAT , NOTWITHSTANDING
150		-	SUBSECTION
151		-	(11)(c) OF THIS SECTION, TO REPLACE PERSONAL PROPERTY AND
152		-	RECEIVE RECOVERABLE DEPRECIATION ON THAT PROPERTY
153		-	, AN INSURER
154		-	SHALL ALLOW THE POLICYHOLDER THE GREATER OF
155		-	:
156		-	(I) A
157		-	T LEAST THREE HUNDRED SIXTY -FIVE DAYS AFTER THE
158		-	EXPIRATION OF
159		-	ALE; OR
160		-	(II) THIRTY-SIX MONTHS AFTER THE INSURER PROVIDES THE
161		-	POLICYHOLDER THE FIRST PAYMENT TOWARD THE ACTUAL CASH VALUE OF
162		-	SUCH LOSS
163		-	.
164		-	(e) T
165		-	HE POLICY MUST PROVIDE THAT THE INSURER WILL PAY THE
166		-	POLICYHOLDER FOR THE LOSS OF USE OF THE INSURED PROPERTY WITHIN
167		-	TWENTY DAYS AFTER THE INSURER RECEIVES DOCUMENTATION OF SUCH
168		-	LOSS
169		-	, WHICH DOCUMENTATION MAY INCLUDE A SIGNED LEASE THAT
170		-	OBLIGATES THE POLICYHOLDER TO PAY FOR TEMPORARY REPLACEMENT
171		-	HOUSING
172		-	; EXCEPT THAT:
173		-	(I) I
174		-	F A POLICYHOLDER PROVIDES A SIGNED LEASE AS
175		-	DOCUMENTATION
176		-	, THE INSURER MAY PAY THE POLICYHOLDER IN MONTHLY
177		-	OR OTHER INCREMENTS
178		-	, IN ACCORDANCE WITH THE TERMS OF THE LEASE ;
179		-	AND
180		-	(II) ALTERNATIVELY, AN INSURER MAY PROVIDE ADVANCE RENT
181		-	PAYMENTS FOR HOUSING FOR THE POLICYHOLDER
182		-	, FAMILY MEMBERS,
183		-	LIVESTOCK, AND PETS, AS NECESSARY.
184		-	(f) T
185		-	HE POLICY MUST PROVIDE THAT THE POLICYHOLDER MAY
186		-	EITHER
187		-	:
	116	+	(13)(b)(I) OF THIS SECTION, THE POLICYHOLDER HAS THE7
	117	+	OPTION TO TWICE EXTEND SUCH PERIOD BY SIX MONTHS IF THE8
	118	+	POLICYHOLDER, ACTING IN GOOD FAITH AND WITH REASONABLE9
	119	+	DILIGENCE, ENCOUNTERS UNAVOIDABLE DELAYS IN OBTAINING A10
	120	+	CONSTRUCTION PERMIT, LACKS NECESSARY CONSTRUCTION MATERIALS,11
	121	+	LACKS AVAILABLE CONTRACTORS TO PERFORM NECESSARY WORK, OR12
	122	+	ENCOUNTERS OTHER CIRCUMSTANCES BEYOND THE POLICYHOLDER'S13
	123	+	CONTROL. THIS SUBSECTION (13)(b)(II) DOES NOT PROHIBIT AN INSURER14
	124	+	FROM ALLOWING A POLICYHOLDER ADDITIONAL TIME TO COLLECT THE15
	125	+	FULL REPLACEMENT COST FOR LOST OR DAMAGED PROPERTY OR FOR16
	126	+	ADDITIONAL LIVING EXPENSES.17
	127	+	(c) THE POLICY MUST INCLUDE ADDITIONAL LIVING EXPENSE18
	128	+	COVERAGE TO APPLY IN THE EVENT OF SUCH A LOSS . NOTWITHSTANDING19
	129	+	SUBSECTION (6)(b) OF THIS SECTION, ADDITIONAL LIVING EXPENSE20
	130	+	COVERAGE MUST BE AVAILABLE FOR A PERIOD OF AT LEAST TWENTY-FOUR21
	131	+	MONTHS, AND THE INSURER SHALL OFFER THE POLICYHOLDER THE22
	132	+	OPPORTUNITY TO TWICE EXTEND SUCH PERIOD BY SIX MONTHS IF THE23
	133	+	POLICYHOLDER, ACTING IN GOOD FAITH AND WITH REASONABLE24
	134	+	DILIGENCE, ENCOUNTERS A DELAY OR DELAYS IN RECEIVING NECESSARY25
	135	+	PERMIT APPROVALS FOR, OR RECONSTRUCTION OF, THE INSURED26
	136	+	OWNER-OCCUPIED RESIDENCE, WHICH DELAYS ARE BEYOND THE CONTROL27
	137	+	1111
	138	+	-4- OF THE POLICYHOLDER.1
	139	+	(d) THE POLICY MUST PROVIDE THAT, NOTWITHSTANDING2
	140	+	SUBSECTION (11)(c) OF THIS SECTION, TO REPLACE PERSONAL PROPERTY3
	141	+	AND RECEIVE RECOVERABLE DEPRECIATION ON THAT PROPERTY, AN4
	142	+	INSURER SHALL ALLOW THE POLICYHOLDER THE GREATER OF :5
	143	+	(I) AT LEAST THREE HUNDRED SIXTY -FIVE DAYS AFTER THE6
	144	+	EXPIRATION OF ALE; OR7
	145	+	(II) THIRTY-SIX MONTHS AFTER THE INSURER PROVIDES THE8
	146	+	POLICYHOLDER THE FIRST PAYMENT TOWARD THE ACTUAL CASH VALUE OF9
	147	+	SUCH LOSS.10
	148	+	(e) THE POLICY MUST PROVIDE THAT THE INSURER WILL PAY THE11
	149	+	POLICYHOLDER FOR THE LOSS OF USE OF THE INSURED PROPERTY WITHIN12
	150	+	TWENTY DAYS AFTER THE INSURER RECEIVES DOCUMENTATION OF SUCH13
	151	+	LOSS, WHICH DOCUMENTATION MAY INCLUDE A SIGNED LEASE THAT14
	152	+	OBLIGATES THE POLICYHOLDER TO PAY FOR TEMPORARY REPLACEMENT15
	153	+	HOUSING; EXCEPT THAT:16
	154	+	(I) IF A POLICYHOLDER PROVIDES A SIGNED LEASE AS17
	155	+	DOCUMENTATION, THE INSURER MAY PAY THE POLICYHOLDER IN MONTHLY18
	156	+	OR OTHER INCREMENTS, IN ACCORDANCE WITH THE TERMS OF THE LEASE;19
	157	+	AND20
	158	+	(II) ALTERNATIVELY, AN INSURER MAY PROVIDE ADVANCE RENT21
	159	+	PAYMENTS FOR HOUSING FOR THE POLICYHOLDER , FAMILY MEMBERS,22
	160	+	LIVESTOCK, AND PETS, AS NECESSARY.23
	161	+	(f) THE POLICY MUST PROVIDE THAT THE POLICYHOLDER MAY24
	162	+	EITHER:25
188	163		(I) R
189		-	EPLACE THE INSURED OWNER -OCCUPIED RESIDENCE AT THE
190		-	CURRENT LOCATION OR ANOTHER LOCATION
191		-	, IN EITHER OF WHICH CASE THE
192		-	CALCULATION OF THE REPLACEMENT COST OF THE INSURED
193		-	PAGE 4-HOUSE BILL 22-1111 OWNER-OCCUPIED RESIDENCE SHALL NOT INCLUDE CONSIDERATION OF THE
194		-	VALUE OF THE LAND UPON WHICH THE REPLACEMENT RESIDENCE IS
195		-	LOCATED
196		-	; OR
197		-	(II) USE THE PROCEEDS FROM THE POLICY TO PURCHASE AN EXISTING
198		-	RESIDENCE AT A NEW LOCATION
199		-	, IN WHICH CASE THE CALCULATION OF THE
200		-	REPLACEMENT COST OF THE INSURED OWNER
201		-	-OCCUPIED RESIDENCE SHALL
202		-	NOT INCLUDE CONSIDERATION OF THE VALUE OF THE LAND UPON WHICH THE
203		-	EXISTING RESIDENCE IS LOCATED
204		-	.
205		-	(g) T
206		-	HE POLICY MUST ALLOW A POLICYHOLDER TO USE CLAIMS
207		-	PAYMENTS RESULTING FROM COVERAGE AGAINST THE LOSS OF
208		-	OUTBUILDINGS
209		-	, DWELLING EXTENSIONS, AND OTHER STRUCTURES TO PAY
210		-	THE COSTS OF A REPLACEMENT RESIDENCE IF THE COVERAGE LIMIT THAT
211		-	APPLIES TO THE POLICYHOLDER
212		-	'S OWNER-OCCUPIED RESIDENCE IS
213		-	INSUFFICIENT TO PAY FOR REBUILDING OR REPLACING THE OWNER
214		-	-OCCUPIED
215		-	RESIDENCE
216		-	. ANY CLAIMS PAYMENTS FOR LOSSES PURSUANT TO THIS
217		-	SUBSECTION
218		-	(13)(g) FOR WHICH REPLACEMENT COST COVERAGE IS
219		-	APPLICABLE SHALL BE FOR THE FULL REPLACEMENT VALUE OF THE LOSS
220		-	WITHOUT REQUIRING ACTUAL REPLACEMENT OF THE OTHER STRUCTURES
221		-	.
222		-	C
223		-	LAIMS PAYMENTS FOR OTHER STRUCTURES IN EXCESS OF THE AMOUNT
224		-	APPLIED TOWARD THE NECESSARY COST TO REBUILD OR REPLACE THE
225		-	DAMAGED OR DESTROYED DWELLING SHALL BE PAID ACCORDING TO THE
226		-	TERMS OF THE POLICY
227		-	.
228		-	(h) W
229		-	ITHIN A REASONABLE AM OUNT OF TIME AFTER RECEIVING A
230		-	CLAIM UNDER AN ISSUED POLICY
231		-	, AN INSURER SHALL PROVIDE TO THE
232		-	POLICYHOLDER
233		-	:
234		-	(I) A
235		-	PPROPRIATE CONTACT INFORMATION THAT ALLOWS FOR DIRECT
236		-	CONTACT WITH EITHER AN EMPLOYEE OF THE INSURER OR A REPRESENTATIVE
237		-	WHO IS CAPABLE OF ELEVATING COMPLAINTS OR INQUIRIES TO AN EMPLOYEE
238		-	OF THE INSURER
239		-	;
	164	+	EPLACE THE INSURED
	165	+	OWNER-OCCUPIED RESIDENCE AT THE26
	166	+	CURRENT LOCATION OR ANOTHER LOCATION , IN EITHER OF WHICH CASE27
	167	+	1111
	168	+	-5- THE CALCULATION OF THE REPLACEMENT COST OF THE INSURED1
	169	+	OWNER-OCCUPIED RESIDENCE SHALL NOT INCLUDE CONSIDERATION OF THE2
	170	+	VALUE OF THE LAND UPON WHICH THE REPLACEMENT RESIDENCE IS3
	171	+	LOCATED; OR4
	172	+	(II) U
	173	+	SE THE PROCEEDS FROM THE POLICY TO PURCHASE AN5
	174	+	EXISTING RESIDENCE AT A NEW
	175	+	LOCATION, IN WHICH CASE THE6
	176	+	CALCULATION OF THE REPLACEMENT COST OF THE INSURED7
	177	+	OWNER-OCCUPIED RESIDENCE SHALL NOT INCLUDE CONSIDERATION OF THE8
	178	+	VALUE OF THE LAND UPON WHICH THE EXISTING RESIDENCE IS LOCATED .9
	179	+	(g) THE POLICY MUST ALLOW A POLICYHOLDER TO USE CLAIMS10
	180	+	PAYMENTS RESULTING FROM COVERAGE AGAINST THE LOSS OF11
	181	+	OUTBUILDINGS, DWELLING EXTENSIONS, AND OTHER STRUCTURES TO PAY12
	182	+	THE COSTS OF A REPLACEMENT RESIDENCE IF THE COVERAGE LIMIT THAT13
	183	+	APPLIES TO THE POLICYHOLDER'S OWNER-OCCUPIED RESIDENCE IS14
	184	+	INSUFFICIENT TO PAY FOR REBUILDING OR REPLACING THE15
	185	+	OWNER-OCCUPIED RESIDENCE. ANY CLAIMS PAYMENTS FOR LOSSES16
	186	+	PURSUANT TO THIS SUBSECTION (13)(g) FOR WHICH REPLACEMENT COST17
	187	+	COVERAGE IS APPLICABLE SHALL BE FOR THE FULL REPLACEMENT VALUE18
	188	+	OF THE LOSS WITHOUT REQUIRING ACTUAL REPLACEMENT OF THE OTHER19
	189	+	STRUCTURES. CLAIMS PAYMENTS FOR OTHER STRUCTURES IN EXCESS OF20
	190	+	THE AMOUNT APPLIED TOWARD THE NECESSARY COST TO REBUILD OR21
	191	+	REPLACE THE DAMAGED OR DESTROYED DWELLING SHALL BE PAID22
	192	+	ACCORDING TO THE TERMS OF THE POLICY .23
	193	+	(h) WITHIN A REASONABLE AMOUNT OF TIME AFTER RECEIVING A24
	194	+	CLAIM UNDER AN ISSUED POLICY, AN INSURER SHALL PROVIDE TO THE25
	195	+	POLICYHOLDER:26
	196	+	(I) APPROPRIATE CONTACT INFORMATION THAT ALLOWS FOR27
	197	+	1111
	198	+	-6- DIRECT CONTACT WITH EITHER AN EMPLOYEE OF THE INSURER OR A1
	199	+	REPRESENTATIVE WHO IS CAPABLE OF ELEVATING COMPLAINTS OR2
	200	+	INQUIRIES TO AN EMPLOYEE OF THE INSURER ;3
	201	+	(II) AT LEAST ONE MEANS OF COMMUNICATION DURING REGULAR4
	202	+	BUSINESS HOURS; AND5
	203	+	(III) A WRITTEN STATUS REPORT IF, WITHIN A SIX-MONTH PERIOD,6
	204	+	THE POLICYHOLDER IS ASSIGNED A THIRD OR SUBSEQUENT ADJUSTER TO7
	205	+	BE PRIMARILY RESPONSIBLE FOR A CLAIM. THE WRITTEN STATUS REPORT8
	206	+	MUST INCLUDE A SUMMARY OF ANY DECISIONS OR ACTIONS THAT ARE9
	207	+	SUBSTANTIALLY RELATED TO THE DISPOSITION OF A CLAIM, INCLUDING10
	208	+	THE AMOUNT OF LOSSES TO STRUCTURES OR CONTENTS , THE RETENTION11
	209	+	OF CONSULTATION OF DESIGN OR CONSTRUCTION PROFESSIONALS , THE12
	210	+	AMOUNT OF COVERAGE FOR LOSSES TO STRUCTURES OR CONTENTS, AND13
	211	+	ALL ITEMS OF DISPUTE.14
	212	+	(14) IF A HOMEOWNERS INSURANCE POLICYHOLDER EXPERIENCES15
	213	+	A TOTAL LOSS OF THE CONTENTS OF AN OWNER -OCCUPIED RESIDENCE16
	214	+	THAT WAS DOCUMENTED AS BEING FURNISHED AT THE TIME OF LOSS AS A17
	215	+	RESULT OF A WILDFIRE DISASTER THAT IS DECLARED BY THE GOVERNOR18
	216	+	PURSUANT TO SECTION 24-33.5-704, THE INSURER SHALL: 19
	217	+	(a) N
	218	+	OTWITHSTANDING SUBSECTION (11)(a) OF THIS SECTION,20
	219	+	OFFER THE POLICYHOLDER A MINIMUM OF
	220	+	SIXTY-FIVE PERCENT, OR A21
	221	+	LARGER PERCENT BY MUTUAL AGREEMENT OF THE POLICYHOLDER AND22
	222	+	INSURER, OF THE LIMIT OF THE CONTENTS COVERAGE INDICATED IN THE23
	223	+	DECLARATION PAGE OF THE POLICY WITHOUT REQUIRING THE24
	224	+	POLICYHOLDER TO SUBMIT A WRI TTEN INVENTORY OF THE CONTENTS ;25
	225	+	(b) N
	226	+	OTIFY THE POLICYHOLDER THAT:26 (I) ACCEPTANCE OF THE MONEY DESCRIBED IN SUBSECTION (14)(a)27
	227	+	1111
	228	+	-7- OF THIS SECTION DOES NOT CHANGE THE BENEFITS AVAILABLE UNDER THE1
	229	+	POLICY;2
240	230		(II) A
241		-	T LEAST ONE MEANS OF COMMUNICATION DURING REGULAR
242		-	BUSINESS HOURS
243		-	; AND
244		-	(III) A WRITTEN STATUS REPORT IF, WITHIN A SIX-MONTH PERIOD,
245		-	THE POLICYHOLDER IS ASSIGNED A THIRD OR SUBSEQUENT ADJUSTER TO BE
246		-	PRIMARILY RESPONSIBLE FOR A CLAIM
247		-	. THE WRITTEN STATUS REPORT MUST
248		-	PAGE 5-HOUSE BILL 22-1111 INCLUDE A SUMMARY OF ANY DECISIONS OR ACTIONS THAT ARE
249		-	SUBSTANTIALLY RELATED TO THE DISPOSITION OF A CLAIM
250		-	, INCLUDING THE
251		-	AMOUNT OF LOSSES TO STRUCTURES OR CONTENTS
252		-	, THE RETENTION OF
253		-	CONSULTATION OF DESIGN OR CONSTRUCTION PROFESSIONALS
254		-	, THE AMOUNT
255		-	OF COVERAGE FOR LOSSES TO STRUCTURES OR CONTENTS
256		-	, AND ALL ITEMS OF
257		-	DISPUTE
258		-	.
259		-	(14) I
260		-	F A HOMEOWNERS INSURANCE POLICYHOLDER EXPERIENCES A
261		-	TOTAL LOSS OF THE CONTENTS OF AN OWNER
262		-	-OCCUPIED RESIDENCE THAT
263		-	WAS DOCUMENTED AS BEING FURNISHED AT THE TIME OF LOSS AS A RESULT
264		-	OF A WILDFIRE DISASTER THAT IS DECLARED BY THE GOVERNOR PURSUANT
265		-	TO SECTION
266		-	24-33.5-704, THE INSURER SHALL:
267		-	(a) N
268		-	OTWITHSTANDING SUBSECTION (11)(a) OF THIS SECTION, OFFER
269		-	THE POLICYHOLDER A MINIMUM OF SIXTY
270		-	-FIVE PERCENT, OR A LARGER
271		-	PERCENT BY MUTUAL AGREEMENT OF THE POLICYHOLDER AND INSURER
272		-	, OF
273		-	THE LIMIT OF THE CONTENTS COVERAGE INDICATED IN THE DECLARATION
274		-	PAGE OF THE POLICY WITHOUT REQUIRING THE POLICYHOLDER TO SUBMIT A
275		-	WRITTEN INVENTORY OF THE CONTENTS
276		-	;
277		-	(b) N
278		-	OTIFY THE POLICYHOLDER THAT:
279		-	(I) A
280		-	CCEPTANCE OF THE MONEY DESCRIBED IN SUBSECTION (14)(a)
281		-	OF THIS SECTION DOES NOT CHANGE THE BENEFITS AVAILABLE UNDER THE
282		-	POLICY
283		-	;
284		-	(II) A
285		-	DDITIONAL MONEY MAY BE AVAILABLE IF THE POLICYHOLDER
286		-	SUBMITS AN INVENTORY
287		-	; AND
288		-	(III) THE INSURER IS REQUIRED, PURSUANT TO SUBSECTION (11)(b)
289		-	OF THIS SECTION, TO DISCLOSE ITS METHODOLOGY FOR DETERMINING THE
290		-	DEPRECIATED VALUE OF THE CONTENTS OF INSURED PROPERTY
291		-	;
292		-	(c) (I) I
293		-	F THE POLICYHOLDER SUBMITS AN INVENTORY OF PERSONAL
294		-	PROPERTY LOSSES IN AN AMOUNT THAT EXCEEDS THE AMOUNT PAID TO THE
295		-	POLICYHOLDER PURSUANT TO SUBSECTION
296		-	(14)(a) OF THIS SECTION:
297		-	(A) R
298		-	EQUEST ANY ADDITIONAL INFORMATION CONCERNING THE
299		-	INVENTORY NO LATER THAN THIRTY DAYS AFTER RECEIVING THE
300		-	INVENTORY
301		-	; AND
302		-	PAGE 6-HOUSE BILL 22-1111 (B) PROVIDE PAYMENT FOR ANY COVERED AND UNDISPUTED ITEMS
303		-	WITHIN THIRTY DAYS AFTER RECEIVING THE INVENTORY
304		-	.
305		-	(II) THE COMMISSIONER SHALL ADOPT RULES TO SIMPLIFY THE
306		-	PROCESS FOR POLICYHOLDERS TO SUBMIT AN INVENTORY FOR PERSONAL
307		-	PROPERTY LOSSES AND EXPEDITE REIMBURSEMENT FOR SUCH LOSSES
308		-	.
	231	+	DDITIONAL MONEY MAY BE AVAILABLE IF THE3
	232	+	POLICYHOLDER SUBMITS AN INVENTORY ; AND4
	233	+	(III) T
	234	+	HE INSURER IS REQUIRED, PURSUANT TO SUBSECTION (11)(b)5
	235	+	OF THIS SECTION, TO DISCLOSE ITS METHODOLOGY FOR DETERMINING THE6
	236	+	DEPRECIATED VALUE OF THE CONTENTS OF INSURED PROPERTY ;7
	237	+	(c)
	238	+	(I) IF THE POLICYHOLDER SUBMITS AN INVENTORY OF8
	239	+	PERSONAL PROPERTY LOSSES IN AN AMOUNT THAT EXCEEDS THE AMOUNT9
	240	+	PAID TO THE POLICYHOLDER PURSUANT TO SUBSECTION (14)(a) OF THIS10
	241	+	SECTION:11
	242	+	(A) REQUEST ANY ADDITIONAL INFORMATION CONCERNING THE12
	243	+	INVENTORY NO LATER THAN THIRTY DAYS AFTER RECEIVING THE13
	244	+	INVENTORY; AND14
	245	+	(B) PROVIDE PAYMENT FOR ANY COVERED AND UNDISPUTED ITEMS15
	246	+	WITHIN THIRTY DAYS AFTER RECEIVING THE INVENTORY . 16
	247	+	(II) THE COMMISSIONER SHALL ADOPT RULES TO SIMPLIFY THE17
	248	+	PROCESS FOR POLICYHOLDERS TO SUBMIT AN INVENTORY FOR PERSONAL18
	249	+	PROPERTY LOSSES AND EXPEDITE REIMBURSEMENT FOR SUCH LOSSES .19
309	250		(d) P
310		-	ROVIDE PAYMENT FOR COVERED COSTS ASSOCIATED WITH THE
311		-	REMOVAL OF DEBRIS WITHIN SIXTY DAYS AFTER RECEIVING AN INVOICE
312		-	,
313		-	RECEIPT, OR OTHER DOCUMENTATION INDICATING THE DATE AND COST OF
314		-	THE REMOVAL OF THE DEBRIS
315		-	; EXCEPT THAT, IN CASES WHERE DEBRIS
316		-	REMOVAL IS CONDUCTED BY
317		-	, OR IN COORDINATION WITH, GOVERNMENTAL
318		-	ENTITIES
319		-	, PAYMENT FOR COVERED COSTS FOR REMOVAL OF DEBRIS WILL BE
320		-	PROVIDED WITHIN A REASONABLE AMOUNT OF TIME
321		-	; AND
322		-	(e) PROVIDE PAYMENT FOR ANY COVERED LOSS OF TREES , SHRUBS,
323		-	AND LANDSCAPING WITHIN THIRTY DAYS AFTER THE INSURER RECEIVES
324		-	DOCUMENTATION OF SUCH LOSS
325		-	, SUCH AS DOCUMENTATION FROM A
326		-	REPUTABLE LANDSCAPING COMPANY
327		-	, SHOWING THE NUMBER AND NATURE
328		-	OF TREES
329		-	, SHRUBS, AND LANDSCAPING FEATURES DAMAGED OR DESTROYED .
	251	+	ROVIDE PAYMENT FOR COVERED COSTS ASSOCIATED WITH THE20
	252	+	REMOVAL OF DEBRIS WITHIN
	253	+	SIXTY DAYS AFTER RECEIVING AN INVOICE ,21
	254	+	RECEIPT, OR OTHER DOCUMENTATION INDICATING THE DATE AND COST OF22
	255	+	THE REMOVAL OF THE DEBRIS ; EXCEPT THAT, IN CASES WHERE DEBRIS23
	256	+	REMOVAL IS CONDUCTED BY, OR IN COORDINATION WITH, GOVERNMENTAL24
	257	+	ENTITIES, PAYMENT FOR COVERED COSTS FOR REMOVAL OF DEBRIS WILL25
	258	+	BE PROVIDED WITHIN A REASONABLE AMOUNT OF TIME ; AND26
	259	+	(e) P
	260	+	ROVIDE PAYMENT FOR ANY COVERED LOSS OF TREES , SHRUBS,27
	261	+	1111
	262	+	-8- AND LANDSCAPING WITHIN THIRTY DAYS AFTER THE INSURER RECEIVES1
	263	+	DOCUMENTATION OF SUCH LOSS, SUCH AS DOCUMENTATION FROM A2
	264	+	REPUTABLE LANDSCAPING COMPANY , SHOWING THE NUMBER AND NATURE3
	265	+	OF TREES, SHRUBS, AND LANDSCAPING FEATURES DAMAGED OR4
	266	+	DESTROYED.5
330	267		(15) T
331		-	HE COMMISSIONER MAY ADOPT RULES AS NECESSARY FOR
332		-	WILDFIRE DISASTERS THAT THE GOVERNOR DECLARES PURS UANT TO SECTION
333		-	24-33.5-704 AND FOR THE IMPLEMENTATION OF SUBSECTIONS (13) AND (14)
334		-	OF THIS SECTION.
335		-	SECTION 2. Appropriation. (1) For the 2022-23 state fiscal year,
336		-	$66,781 is appropriated to the department of regulatory agencies for use by
337		-	the division of insurance. This appropriation is from the division of
338		-	insurance cash fund created in section 10-1-103 (3), C.R.S. To implement
339		-	this act, the division may use this appropriation as follows:
340		-	(a) $59,231 for personal services, which amount is based on an
341		-	assumption that the division will require an additional 1.0 FTE; and
342		-	(b) $7,550 for operating expenses.
343		-	SECTION 3. Act subject to petition - effective date -
344		-	applicability. (1) This act takes effect at 12:01 a.m. on the day following
345		-	the expiration of the ninety-day period after final adjournment of the
346		-	PAGE 7-HOUSE BILL 22-1111 general assembly; except that, if a referendum petition is filed pursuant to
347		-	section 1 (3) of article V of the state constitution against this act or an item,
348		-	section, or part of this act within such period, then the act, item, section, or
349		-	part will not take effect unless approved by the people at the general
350		-	election to be held in November 2022 and, in such case, will take effect on
351		-	the date of the official declaration of the vote thereon by the governor.
352		-	(2) This act applies to the offer, issuance, and renewal of property
353		-	PAGE 8-HOUSE BILL 22-1111 and casualty insurance policies in the state and to the administration of
354		-	claims pursuant to such policies on and after the applicable effective date
355		-	of this act.
356		-	____________________________ ____________________________
357		-	Alec Garnett Steve Fenberg
358		-	SPEAKER OF THE HOUSE PRESIDENT OF
359		-	OF REPRESENTATIVES THE SENATE
360		-	____________________________ ____________________________
361		-	Robin Jones Cindi L. Markwell
362		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
363		-	OF REPRESENTATIVES THE SENATE
364		-	APPROVED________________________________________
365		-	(Date and Time)
366		-	_________________________________________
367		-	Jared S. Polis
368		-	GOVERNOR OF THE STATE OF COLORADO
369		-	PAGE 9-HOUSE BILL 22-1111
	268	+	HE COMMISSIONER MAY ADOPT RULES AS NECESSARY FOR6 WILDFIRE DISASTERS THAT THE GOVERNOR DECLARES PURSUANT TO7
	269	+	SECTION 24-33.5-704 AND FOR THE IMPLEMENTATION OF SUBSECTIONS8
	270	+	(13) AND (14) OF THIS SECTION.9
	271	+	SECTION 2. Appropriation. (1) For the 2022-23 state fiscal10
	272	+	year, $66,781 is appropriated to the department of regulatory agencies for11
	273	+	use by the division of insurance. This appropriation is from the division12
	274	+	of insurance cash fund created in section 10-1-103 (3), C.R.S. To13
	275	+	implement this act, the division may use this appropriation as follows:14
	276	+	(a) $59,231 for personal services, which amount is based on an15
	277	+	assumption that the division will require an additional 1.0 FTE; and16
	278	+	(b) $7,550 for operating expenses.17
	279	+	SECTION 3. Act subject to petition - effective date -18
	280	+	applicability. (1) This act takes effect at 12:01 a.m. on the day following19
	281	+	the expiration of the ninety-day period after final adjournment of the20
	282	+	general assembly; except that, if a referendum petition is filed pursuant21
	283	+	to section 1 (3) of article V of the state constitution against this act or an22
	284	+	item, section, or part of this act within such period, then the act, item,23
	285	+	section, or part will not take effect unless approved by the people at the24
	286	+	general election to be held in November 2022 and, in such case, will take25
	287	+	effect on the date of the official declaration of the vote thereon by the26
	288	+	governor.27
	289	+	1111
	290	+	-9- (2) This act applies to the offer, issuance, and renewal of property1
	291	+	and casualty insurance policies in the state and to the administration of2
	292	+	claims pursuant to such policies on and after the applicable effective date3
	293	+	of this act.4
	294	+	1111
	295	+	-10-