Colorado 2023 Regular Session

Colorado House Bill HB1174 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	First Regular Session
	2	+	Seventy-fourth General Assembly
	3	+	STATE OF COLORADO
	4	+	REREVISED
	5	+	This Version Includes All Amendments
	6	+	Adopted in the Second House
	7	+	LLS NO. 23-0133.01 Yelana Love x2295
1	8		HOUSE BILL 23-1174
2		-	BY REPRESENTATIVE(S) Amabile and Brown, Boesenecker, Dickson,
3		-	Herod, Joseph, Kipp, Lieder, Lindsay, Lindstedt, Mabrey, Martinez,
4		-	McCormick, Michaelson Jenet, Ricks, Sharbini, Story, Titone, Velasco,
5		-	Weissman, Willford, McCluskie, Bacon, Bird, English, Epps, Froelich,
6		-	Garcia, Hamrick, Mauro, Ortiz, Parenti, Valdez;
7		-	also SENATOR(S) Baisley and Roberts, Cutter, Danielson, Gardner,
8		-	Hansen, Jaquez Lewis, Kirkmeyer, Kolker, Liston, Marchman, Pelton B.,
9		-	Priola, Smallwood, Sullivan, Will, Fenberg.
	9	+	House Committees Senate Committees
	10	+	Business Affairs & Labor Business, Labor, & Technology
	11	+	Appropriations Appropriations
	12	+	A BILL FOR AN ACT
10	13		C
11		-	ONCERNING HOMEOWNER 'S INSURANCE, AND, IN CONNECTION THEREWITH,
12		-	REQUIRING CERTAIN REPORTS RELATED TO THE COST OF
13		-	RECONSTRUCTING A HOME
14		-	, INCREASING THE NOTICE REQUIREMENT
15		-	BEFORE AN INSURER CAN CANCEL OR REFUSE TO RENEW A
16		-	HOMEOWNER
17		-	'S INSURANCE POLICY , CREATING GUARANTEED
18		-	REPLACEMENT COST COVERAGE IN HOMEOWNER
19		-	'S INSURANCE, AND
20		-	MAKING AN APPROPRIATION
21		-	.
22		-
23		-	Be it enacted by the General Assembly of the State of Colorado:
24		-	SECTION 1. In Colorado Revised Statutes, add 10-1-144 as
25		-	follows:
26		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
27		-	officers and the Governor. To determine whether the Governor has signed the bill
28		-	or taken other action on it, please consult the legislative status sheet, the legislative
29		-	history, or the Session Laws.
30		-	________
31		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
32		-	through words or numbers indicate deletions from existing law and such material is not part of
33		-	the act. 10-1-144. Cost to reconstruct a home - annual report -
34		-	homeowner's insurance affordability study - rules. (1) (a) T
	14	+	ONCERNING HOMEOWNER 'S INSURANCE, AND, IN CONNECTION101
	15	+	THEREWITH, REQUIRING CERTAIN REPORTS RELATED TO THE102
	16	+	COST OF RECONSTRUCTING A HOME, INCREASING THE NOTICE103
	17	+	REQUIREMENT BEFORE AN INSURER CAN CANCEL OR REFUSE TO104
	18	+	RENEW A HOMEOWNER 'S INSURANCE POLICY, CREATING105
	19	+	GUARANTEED REPLACEMENT COST COVERAGE IN HOMEOWNER 'S106
	20	+	INSURANCE, AND MAKING AN APPROPRIATION .107
	21	+	Bill Summary
	22	+	(Note: This summary applies to this bill as introduced and does
	23	+	not reflect any amendments that may be subsequently adopted. If this bill
	24	+	passes third reading in the house of introduction, a bill summary that
	25	+	applies to the reengrossed version of this bill will be available at
	26	+	http://leg.colorado.gov
	27	+	.)
	28	+	SENATE
	29	+	3rd Reading Unamended
	30	+	May 7, 2023
	31	+	SENATE
	32	+	Amended 2nd Reading
	33	+	May 6, 2023
	34	+	HOUSE
	35	+	3rd Reading Unamended
	36	+	April 21, 2023
	37	+	HOUSE
	38	+	Amended 2nd Reading
	39	+	April 18, 2023
	40	+	HOUSE SPONSORSHIP
	41	+	Amabile and Brown, Boesenecker, Dickson, Herod, Joseph, Kipp, Lieder, Lindsay,
	42	+	Lindstedt, Mabrey, Martinez, McCluskie, McCormick, Michaelson Jenet, Ricks, Sharbini,
	43	+	Story, Titone, Velasco, Weissman, Willford
	44	+	SENATE SPONSORSHIP
	45	+	Baisley and Roberts, Cutter, Danielson, Fenberg, Gardner, Hansen, Jaquez Lewis,
	46	+	Kirkmeyer, Kolker, Liston, Marchman, Pelton B., Priola, Smallwood, Sullivan, Will
	47	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	48	+	Capital letters or bold & italic numbers indicate new material to be added to existing law.
	49	+	Dashes through the words or numbers indicate deletions from existing law. The bill requires the commissioner of insurance (commissioner)
	50	+	to prepare an annual report on the cost of rebuilding homes in Colorado
	51	+	in the event of a total loss. An insurer that issues or renews more than
	52	+	25% of its homeowner's insurance policies in a particular region of the
	53	+	state at a cost that is at least 10% less than the estimate set forth in the
	54	+	commissioner's annual report is required to report certain information to
	55	+	the commissioner.
	56	+	Current law prohibits an insurer from canceling or refusing to
	57	+	renew a policy of homeowner's insurance unless the insurer mails notice
	58	+	to the insured at least 30 days in advance of the effective date of the
	59	+	cancellation of or refusal to renew the policy. The bill increases the notice
	60	+	requirement to 60 days in advance of the action.
	61	+	The bill creates guaranteed replacement cost coverage in
	62	+	homeowner's insurance, which pays the full cost to repair or replace a
	63	+	damaged or destroyed structure, even if the amount exceeds the policy
	64	+	limits. The bill specifies the factors an insurer must consider when
	65	+	determining the replacement costs of a dwelling and requires insurers to
	66	+	disclose certain information regarding the replacement costs before
	67	+	issuing or renewing a homeowner's insurance policy.
	68	+	The bill requires an insurer to offer an applicant guaranteed
	69	+	replacement cost coverage before offering extended replacement cost
	70	+	coverage, law and ordinance coverage, or inflation protection coverage,
	71	+	which is defined as coverage that provides automatic adjustments of the
	72	+	coverage amount on the dwelling or structure being insured to protect
	73	+	against the impact of inflation.
	74	+	Be it enacted by the General Assembly of the State of Colorado:1
	75	+	SECTION 1. In Colorado Revised Statutes, add 10-1-144 as2
	76	+	follows:3
	77	+	10-1-144. Cost to
	78	+	reconstruct a home - annual report -4
	79	+	homeowner's insurance affordability study - rules. (1) (a) T HE5
	80	+	COMMISSIONER SHALL CONTRACT WITH AN INDEPENDENT THIRD PARTY TO6
	81	+	PREPARE AN ANNUAL RESIDENTIAL RECONSTRUCTION CONSUMER7
	82	+	INFORMATION REPORT ON THE COST OF RECONSTRUCTING HOMES IN8
	83	+	COLORADO, TAKING INTO ACCOUNT THE REGION OF THE STATE , THE9
	84	+	HOME TYPES BY DESIGN STRUCTURE , DIFFERENT HOME CUSTOMIZATION10
	85	+	1174-2- TYPES, AND THE FACTORS INCLUDED IN SECTION 10-4-110.8 (8). THE1
	86	+	COMMISSIONER SHALL COMPLETE THE REPORT BY APRIL 1, 2025, AND BY2
	87	+	A
	88	+	PRIL 1 OF EACH YEAR THEREAFTER BASED ON DATA FROM THE3
	89	+	PRECEDING CALENDAR YEAR .4
	90	+	(b) T
	91	+	HE DIVISION SHALL POST THE ANNUAL REPORT PREPARED5
	92	+	PURSUANT TO THIS SUBSECTION (1) ON THE DIVISION'S WEBSITE BY APRIL6
	93	+	15
	94	+	OF EACH YEAR.7
	95	+	(2) AFTER A STAKEHOLDER PROCESS, THE COMMISSIONER MAY8
	96	+	CONTRACT WITH AN INDEPENDENT THIRD PARTY TO EVALUATE POLICIES9
	97	+	TO ADDRESS THE AFFORDABILITY OF HOMEOWNER 'S INSURANCE.10
	98	+	(3) T
	99	+	HE COMMISSIONER MAY PROMULGATE RULES TO IMPLEMENT11
	100	+	THIS SECTION.12
	101	+	SECTION 2. In Colorado Revised Statutes, 10-4-110.7, amend13
	102	+	(3) as follows:14
	103	+	10-4-110.7. Cancellation or nonrenewal - homeowner's15
	104	+	insurance policies. (3) No
	105	+	AN insurer shall NOT cancel or refuse to16
	106	+	renew a policy of homeowner's insurance unless such insurer mails, by17
	107	+	first-class mail to the named insured, at the last address shown in the18
	108	+	insurer's records, at least thirty SIXTY days in advance, a notice of its19
	109	+	intended action pursuant to section 10-4-110 that specifically states the20
	110	+	reasons for proposing to take such action; pursuant to section 10-4-110;21
	111	+	except that, where cancellation is for nonpayment of premium,
	112	+	THE22
	113	+	INSURER SHALL PROVIDE at least ten days' notice of cancellation23
	114	+	accompanied by the reasons therefor shall be given
	115	+	FOR TAKING SUCH24
	116	+	ACTION.25
	117	+	SECTION 3. In Colorado Revised Statutes, 10-4-110.8 amend26
	118	+	(6)(a), (8), and (15); and add (3)(d.7) and (9.5) as follows:27
	119	+	1174
	120	+	-3- 10-4-110.8. Homeowner's insurance - prohibited and required1
	121	+	practices - estimates of replacement value - additional living expense2
	122	+	coverage - copies of policies - personal property contents coverage -3
	123	+	inventory of personal property - requirements concerning total loss4
	124	+	scenarios resulting from wildlife disasters - definitions - rules. (3) As5
	125	+	used in this section, unless the context otherwise requires:6
	126	+	7
	127	+	(d.7) "I
	128	+	NFLATION PROTECTION COVERAGE " MEANS COVERAGE8
	129	+	THAT PROVIDES AUTOMATIC ADJUSTMENTS OF THE COVERAGE AMOUNT ON9
	130	+	THE DWELLING OR STRUCTURE BEING INSURED TO PROTECT AGAINST THE10
	131	+	IMPACT OF INFLATION.11 (6) (a) (I) Before issuance or renewal of a replacement-cost12
	132	+	homeowner's insurance policy whose dwelling limit is equal to or greater13
	133	+	than the estimated replacement cost of the residence, the insurer shall14
	134	+	make available to an applicant the opportunity to obtain extended15
	135	+	replacement-cost coverage and law and ordinance coverage. At a16
	136	+	minimum, the insurer shall make available OFFER law and ordinance17
	137	+	coverage in an amount of insurance equal to ten TWENTY percent of the18
	138	+	limit of the insurance for the dwelling and extended replacement-cost19
	139	+	coverage in an amount of insurance that is at least twenty FIFTY percent20
	140	+	of the limit of the insurance for the dwelling. Information provided must21
	141	+	be accompanied by an explanation of the purpose, terms, and cost of these22
	142	+	coverages. This paragraph (a) SUBSECTION (6)(a) does not apply to any23
	143	+	homeowner's insurance policy that already includes GUARANTEED24
	144	+	REPLACEMENT COST COVERAGE, INFLATION PROTECTION COVERAGE,25
	145	+	extended replacement-cost coverage, and OR law and ordinance coverage26
	146	+	in amounts greater than or equal to the amounts specified in this27
	147	+	1174
	148	+	-4- paragraph (a) SUBSECTION (6)(a).1
	149	+	(II) NO LATER THAN JANUARY 1, 2025, AND AS PRESCRIBED BY THE2
	150	+	COMMISSIONER BY RULE, THE INSURER SHALL:3
	151	+	(A) LIST ON THE DECLARATION PAGE OF THE POLICY, IN BOLD AND4
	152	+	IN TWELVE-POINT TYPE, WHETHER A CONSUMER PURCHASED OR REJECTED5
	153	+	THE ADDITIONAL COVERAGES LISTED IN THIS SUBSECTION (6)(a); AND6
	154	+	(B) PROVIDE THE PREMIUM COST ASSOCIATED WITH THE REJECTED7
	155	+	ADDITIONAL COVERAGES LISTED IN THIS SUBSECTION (6)(a) IN A SEPARATE8
	156	+	NOTICE WITH THE APPLICATION OR RENEWAL OF THE POLICY .9
	157	+	(8) The insurer must consider subject to the insurer's underwriting10
	158	+	requirements, an estimate from a licensed contractor or licensed architect11
	159	+	submitted by the policyholder as the basis for establishing the12
	160	+	replacement cost of a dwelling. THE FOLLOWING FACTORS AS A BASIS FOR13
	161	+	ESTABLISHING THE RECONSTRUCTION COST OF A DWELLING :14
	162	+	(a) T
35	163		HE
36		-	COMMISSIONER SHALL CONTRACT WITH AN INDEPENDENT THIRD PARTY TO
37		-	PREPARE AN ANNUAL RESIDENTIAL RECONSTRUCTION CONSUMER
38		-	INFORMATION REPORT ON THE COST OF RECONSTRUCTING HOMES IN
39		-	COLORADO, TAKING INTO ACCOUNT THE REGION OF THE STATE , THE HOME
40		-	TYPES BY DESIGN STRUCTURE
41		-	, DIFFERENT HOME CUSTOMIZATION TYPES, AND
42		-	THE FACTORS INCLUDED IN SECTION
43		-	10-4-110.8 (8). THE COMMISSIONER
44		-	SHALL COMPLETE THE REPORT BY
45		-	APRIL 1, 2025, AND BY APRIL 1 OF EACH
46		-	YEAR THEREAFTER BASED ON DATA FROM THE PRECEDING CALENDAR YEAR
47		-	.
	164	+	RECONSTRUCTION COST ESTIMATED FROM THE ANNUAL15
	165	+	REPORT PREPARED PURSUANT TO SECTION 10-1-144;16
48	166		(b) T
49		-	HE DIVISION SHALL POST THE ANNUAL REPORT PREPARED
50		-	PURSUANT TO THIS SUBSECTION
51		-	(1) ON THE DIVISION'S WEBSITE BY APRIL 15
52		-	OF EACH YEAR.
53		-	(2) A
54		-	FTER A STAKEHOLDER PROCESS , THE COMMISSIONER MAY
55		-	CONTRACT WITH AN INDEPENDENT THIRD PARTY TO EVALUATE POLICIES TO
56		-	ADDRESS THE AFFORDABILITY OF HOMEOWNER
57		-	'S INSURANCE.
58		-	(3) T
59		-	HE COMMISSIONER MAY PROMULGATE RULES TO IMPLEMENT
60		-	THIS SECTION
61		-	.
62		-	SECTION 2. In Colorado Revised Statutes, 10-4-110.7, amend (3)
63		-	as follows:
64		-	10-4-110.7. Cancellation or nonrenewal - homeowner's
65		-	insurance policies. (3) No
66		-	AN insurer shall NOT cancel or refuse to renew
67		-	a policy of homeowner's insurance unless such insurer mails, by first-class
68		-	mail to the named insured, at the last address shown in the insurer's records,
69		-	at least thirty
70		-	SIXTY days in advance, a notice of its intended action pursuant
71		-	to section 10-4-110 that specifically states the reasons for proposing to take
72		-	such action; pursuant to section 10-4-110; except that, where cancellation
73		-	is for nonpayment of premium,
74		-	THE INSURER SHALL PROVIDE at least ten
75		-	days' notice of cancellation accompanied by the reasons therefor shall begiven FOR TAKING SUCH ACTION.
76		-	SECTION 3. In Colorado Revised Statutes, 10-4-110.8 amend
77		-	(6)(a), (8), and (15); and add (3)(d.7) and (9.5) as follows:
78		-	10-4-110.8. Homeowner's insurance - prohibited and required
79		-	PAGE 2-HOUSE BILL 23-1174 practices - estimates of replacement value - additional living expense
80		-	coverage - copies of policies - personal property contents coverage -
81		-	inventory of personal property - requirements concerning total loss
82		-	scenarios resulting from wildlife disasters - definitions - rules. (3) As
83		-	used in this section, unless the context otherwise requires:
84		-	(d.7) "I
85		-	NFLATION PROTECTION COVERAGE " MEANS COVERAGE THAT
86		-	PROVIDES AUTOMATIC ADJUSTMENTS OF THE COVERAGE AMOUNT ON THE
87		-	DWELLING OR STRUCTURE BEING INSURED TO PROTECT AGAINST THE IMPACT
88		-	OF INFLATION
89		-	.
90		-	(6) (a) (I) Before issuance or renewal of a replacement-cost
91		-	homeowner's insurance policy whose dwelling limit is equal to or greater
92		-	than the estimated replacement cost of the residence, the insurer shall make
93		-	available to an applicant the opportunity to obtain extended
94		-	replacement-cost coverage and law and ordinance coverage. At a minimum,
95		-	the insurer shall make available
96		-	OFFER law and ordinance coverage in an
97		-	amount of insurance equal to ten TWENTY percent of the limit of the
98		-	insurance for the dwelling and extended replacement-cost coverage in an
99		-	amount of insurance that is at least twenty
100		-	FIFTY percent of the limit of the
101		-	insurance for the dwelling. Information provided must be accompanied by
102		-	an explanation of the purpose, terms, and cost of these coverages. This
103		-	paragraph (a)
104		-	SUBSECTION (6)(a) does not apply to any homeowner's
105		-	insurance policy that already includes
106		-	GUARANTEED REPLACEMENT COST
107		-	COVERAGE
108		-	, INFLATION PROTECTION COVERAGE, extended replacement-cost
109		-	coverage, and
110		-	OR law and ordinance coverage in amounts greater than or
111		-	equal to the amounts specified in this paragraph (a) SUBSECTION (6)(a).
112		-	(II) N
113		-	O LATER THAN JANUARY 1, 2025, AND AS PRESCRIBED BY THE
114		-	COMMISSIONER BY RULE
115		-	, THE INSURER SHALL:
116		-	(A) L
117		-	IST ON THE DECLARATION PAGE OF THE POLICY , IN BOLD AND
118		-	IN TWELVE
119		-	-POINT TYPE, WHETHER A CONSUMER PURCHASED OR REJECTED
120		-	THE ADDITIONAL COVERAGES LISTED IN THIS SUBSECTION
121		-	(6)(a); AND
122		-	(B) PROVIDE THE PREMIUM COST ASSOCIATED WITH THE REJECTED
123		-	ADDITIONAL COVERAGES LISTED IN THIS SUBSECTION
124		-	(6)(a) IN A SEPARATE
125		-	NOTICE WITH THE APPLICATION OR RENEWAL OF THE POLICY
126		-	.
127		-	(8) The insurer must consider subject to the insurer's underwriting
128		-	PAGE 3-HOUSE BILL 23-1174 requirements, an estimate from a licensed contractor or licensed architect
129		-	submitted by the policyholder as the basis for establishing the replacement
130		-	cost of a dwelling. THE FOLLOWING FACTORS AS A BASIS FOR ESTABLISHING
131		-	THE RECONSTRUCTION COST OF A DWELLING
132		-	:
	167	+	HE
	168	+	RECONSTRUCTION COST ESTIMATING SOFTWARE USED AND17
	169	+	THE SOFTWARE ESTIMATE;18
	170	+	(c) S
	171	+	PECIFIC
	172	+	RECONSTRUCTION EXPENSES , INCLUDING:19
	173	+	(I) L
	174	+	ABOR, BUILDING MATERIALS, AND SUPPLIES;20
	175	+	(II) A
	176	+	CONTRACTOR'S OVERHEAD AND PROFIT;21
	177	+	(III) D
	178	+	EMOLITION AND DEBRIS REMOVAL ;22
	179	+	(IV) COST OF PERMITS AND ARCHITECT'S PLANS AND FEES; AND23
	180	+	(V) F
	181	+	EATURES OF THE
	182	+	STRUCTURE, INCLUDING:24
133	183		(A) T
134		-	HE RECONSTRUCTION COST ESTIMATED FROM THE ANNUAL
135		-	REPORT PREPARED PURSUANT TO SECTION
136		-	10-1-144;
	184	+	HE
	185	+	FOUNDATION TYPE;25
137	186		(B) T
138		-	HE RECONSTRUCTION COST ESTIMATING SOFTWARE USED AND
139		-	THE SOFTWARE ESTIMATE
140		-	;
141		-	(c) S
142		-	PECIFIC RECONSTRUCTION EXPENSES , INCLUDING:
143		-	(I) L
144		-	ABOR, BUILDING MATERIALS, AND SUPPLIES;
145		-	(II) A
146		-	CONTRACTOR'S OVERHEAD AND PROFIT;
147		-	(III) D
148		-	EMOLITION AND DEBRIS REMOVAL ;
149		-	(IV) C
150		-	OST OF PERMITS AND ARCHITECT'S PLANS AND FEES; AND
151		-	(V) FEATURES OF THE STRUCTURE, INCLUDING:
	187	+	HE TYPE OF FRAME;26
	188	+	(C) R
	189	+	OOFING MATERIALS AND TYPE OF ROOF ;27
	190	+	1174
	191	+	-5- (D) SIDING MATERIALS AND TYPE OF SIDING;1
	192	+	(E) S
	193	+	QUARE FOOTAGE;2
	194	+	(F) N
	195	+	UMBER OF STORIES;3
	196	+	(G) A
	197	+	NY WALL HEIGHTS THAT ARE NOT STANDARD ;4
	198	+	(H) I
	199	+	NTERIOR FEATURES AND FINISHES, SUCH AS THE HEATING AND5
	200	+	AIR CONDITIONING SYSTEM, WALLS, FLOORING, CEILING, FIREPLACES,6
	201	+	KITCHEN, AND BATHROOMS;7
	202	+	(I) T
	203	+	HE AGE OF THE ORIGINAL
	204	+	STRUCTURE OR THE YEAR OF THE8
	205	+	ORIGINAL STRUCTURE'S CONSTRUCTION; AND9
	206	+	(J) T
	207	+	HE SIZE AND TYPE OF ANY ATTACHED GARAGE ; AND10
	208	+	(d) A
	209	+	N ESTIMATE FROM A CONTRACTOR OR AN ARCHITECT11
	210	+	LICENSED PURSUANT TO ARTICLE 120 OF TITLE 12,
	211	+	IF SUBMITTED BY THE12
	212	+	POLICYHOLDER.13
	213	+	(9.5) (a) AT APPLICATION AND RENEWAL OF A REPLACEMENT COST14
	214	+	HOMEOWNER'S INSURANCE POLICY FOR A DWELLING THAT IS ISSUED OR15
	215	+	RENEWED ON AND AFTER JANUARY 1, 2025, THE INSURER SHALL:16
	216	+	(I) PROVIDE THE APPLICANT OR POLICYHOLDER WITH AN ESTIMATE17
	217	+	OF THE COST NECESSARY TO RECONSTRUCT THE COVERED STRUCTURE;18
	218	+	(II) DISCLOSE TO THE APPLICANT OR POLICYHOLDER , IN A FORM19
	219	+	AND MANNER PRESCRIBED BY THE COMMISSIONER BY RULE :20
	220	+	(A) HOW THE ESTIMATE WAS CALCULATED , TAKING INTO ACCOUNT21
	221	+	THE FACTORS LISTED IN SUBSECTION (8) OF THIS SECTION; AND22
	222	+	(B) THE RECONSTRUCTION COSTS FOR HOMES AS DETAILED IN THE23
	223	+	ANNUAL REPORT REQUIRED IN SECTION 10-1-144 FOR THE SAME24
	224	+	GEOGRAPHIC AREA OF THE INSURED 'S HOME;25
	225	+	(III) PROVIDE COPIES OF ANY GENERATED ESTIMATES FROM ANY26
	226	+	SOFTWARE OR TOOLS OR SERVICES USED BY THE INSURER TO ESTABLISH27
	227	+	1174
	228	+	-6- THE RECONSTRUCTION COSTS; 1
	229	+	(IV) PROVIDE THE APPLICANT OR POLICYHOLDER WITH THE WEB2
	230	+	ADDRESS OF, OR A LINK TO, THE REPORT PREPARED PURSUANT TO SECTION3
	231	+	10-1-144; AND4
	232	+	(b) AN INSURER OTHERWISE SUBJECT TO THIS SUBSECTION (9.5)5
	233	+	DOES NOT HAVE TO COMPLY WITH THE REQUIREMENTS OF THIS6
	234	+	SUBSECTION (9.5) IF:7
	235	+	(I) WITHIN THE TWO YEARS PRIOR TO THE OFFER OF RENEWAL OF8
	236	+	THE HOMEOWNER'S INSURANCE POLICY, THE POLICYHOLDER HAS9
	237	+	REQUESTED AND THE INSURER HAS PROVIDED COVERAGE LIMITS GREATER10
	238	+	THAN THE LIMITS PREVIOUSLY SELECTED BY THE POLICYHOLDER ; OR11
	239	+	(II) IN CONNECTION WITH ITS ANNUAL OFFER TO RENEW THE12
	240	+	POLICY, THE INSURER HAS OFFERED THE POLICYHOLDER, ON AN13
	241	+	EVERY-OTHER-YEAR BASIS, THE RIGHT TO RECALCULATE THE14
	242	+	RECONSTRUCTION COST ESTIMATE AND THE POLICY INCLUDES INFLATION15
	243	+	PROTECTION COVERAGE.16
	244	+	(15) The commissioner may adopt rules as necessary for wildfire17
	245	+	disasters that the governor declares pursuant to section 24-33.5-704 and18
	246	+	for the implementation of subsections (13) and (14) of this section. TO19
	247	+	IMPLEMENT THIS SECTION, INCLUDING RULES REGARDING:20
152	248		(a) T
153		-	HE FOUNDATION TYPE;
	249	+	HE INFORMATION THAT INSURERS MUST CONSIDER IN21
	250	+	ESTIMATING
	251	+	RECONSTRUCTION COSTS;22
154	252		(b) T
155		-	HE TYPE OF FRAME;
156		-	(C) R
157		-	OOFING MATERIALS AND TYPE OF ROOF ;
158		-	(D) S
159		-	IDING MATERIALS AND TYPE OF SIDING;
160		-	(E) S
161		-	QUARE FOOTAGE;
162		-	(F) N
163		-	UMBER OF STORIES;
164		-	(G) A
165		-	NY WALL HEIGHTS THAT ARE NOT STANDARD ;
166		-	(H) I
167		-	NTERIOR FEATURES AND FINISHES, SUCH AS THE HEATING AND
168		-	AIR CONDITIONING SYSTEM
169		-	, WALLS, FLOORING, CEILING, FIREPLACES,
170		-	KITCHEN, AND BATHROOMS;
171		-	PAGE 4-HOUSE BILL 23-1174 (I) THE AGE OF THE ORIGINAL STRUCTURE OR THE YEAR OF THE
172		-	ORIGINAL STRUCTURE
173		-	'S CONSTRUCTION; AND
174		-	(J) THE SIZE AND TYPE OF ANY ATTACHED GARAGE ; AND
175		-	(d) AN ESTIMATE FROM A CONTRACTOR OR AN ARCHITECT LICENSED
176		-	PURSUANT TO ARTICLE
177		-	120 OF TITLE 12, IF SUBMITTED BY THE
178		-	POLICYHOLDER
179		-	.
180		-	(9.5) (a) A
181		-	T APPLICATION AND RENEWAL OF A REPLACEMENT COST
182		-	HOMEOWNER
183		-	'S INSURANCE POLICY FOR A DWELLING THAT IS ISSUED OR
184		-	RENEWED ON AND AFTER
185		-	JANUARY 1, 2025, THE INSURER SHALL:
186		-	(I) P
187		-	ROVIDE THE APPLICANT OR POLICYHOLDER WITH AN ESTIMATE
188		-	OF THE COST NECESSARY TO RECONSTRUCT THE COVERED STRUCTURE
189		-	;
190		-	(II) D
191		-	ISCLOSE TO THE APPLICANT OR POLICYHOLDER , IN A FORM AND
192		-	MANNER PRESCRIBED BY THE COMMISSIONER BY RULE
193		-	:
194		-	(A) H
195		-	OW THE ESTIMATE WAS CALCULATED , TAKING INTO ACCOUNT
196		-	THE FACTORS LISTED IN SUBSECTION
197		-	(8) OF THIS SECTION; AND
198		-	(B) THE RECONSTRUCTION COSTS FOR HOMES AS DETAILED IN THE
199		-	ANNUAL REPORT REQUIRED IN SECTION
200		-	10-1-144 FOR THE SAME GEOGRAPHIC
201		-	AREA OF THE INSURED
202		-	'S HOME;
203		-	(III) P
204		-	ROVIDE COPIES OF ANY GENERATED ESTIMATES FROM ANY
205		-	SOFTWARE OR TOOLS OR SERVICES USED BY THE INSURER TO ESTABLISH THE
206		-	RECONSTRUCTION COSTS
207		-	;
208		-	(IV) P
209		-	ROVIDE THE APPLICANT OR POLICYHOLDER WITH THE WEB
210		-	ADDRESS OF
211		-	, OR A LINK TO, THE REPORT PREPARED PURSUANT TO SECTION
212		-	10-1-144; AND
213		-	(b) AN INSURER OTHERWISE SUBJECT TO THIS SUBSECTION (9.5) DOES
214		-	NOT HAVE TO COMPLY WITH THE REQUIREMENTS OF THIS SUBSECTION
215		-	(9.5)
216		-	IF:
217		-	(I) W
218		-	ITHIN THE TWO YEARS PRIOR TO THE OFFER OF RENEWAL OF THE
219		-	HOMEOWNER
220		-	'S INSURANCE POLICY, THE POLICYHOLDER HAS REQUESTED AND
221		-	PAGE 5-HOUSE BILL 23-1174 THE INSURER HAS PROVIDED COVERAGE LIMITS GREATER THAN THE LIMITS
222		-	PREVIOUSLY SELECTED BY THE POLICYHOLDER
223		-	; OR
224		-	(II) IN CONNECTION WITH ITS ANNUAL OFFER TO RENEW THE POLICY ,
225		-	THE INSURER HAS OFFERED THE POLICYHOLDER , ON AN EVERY-OTHER-YEAR
226		-	BASIS
227		-	, THE RIGHT TO RECALCULATE THE RECONSTRUCTION COST ESTIMATE
228		-	AND THE POLICY INCLUDES INFLATION PROTECTION COVERAGE
229		-	.
230		-	(15) The commissioner may adopt rules as necessary for wildfire
231		-	disasters that the governor declares pursuant to section 24-33.5-704 and for
232		-	the implementation of subsections (13) and (14) of this section. TO
233		-	IMPLEMENT THIS SECTION
234		-	, INCLUDING RULES REGARDING:
235		-	(a) T
236		-	HE INFORMATION THAT INSURERS MUST CONSIDER IN
237		-	ESTIMATING RECONSTRUCTION COSTS
238		-	;
239		-	(b) T
240		-	HE USE OF RECONSTRUCTING COST ESTIMATOR TOOLS AND
241		-	SERVICES
242		-	; AND
243		-	(c) THE REQUIREMENTS TO PROVIDE INFORMATION IN THE SUMMARY
244		-	DISCLOSURE FORM TO CONSUMERS THAT EXPLAINS REPLACEMENT COST
245		-	COVERAGE
246		-	, ACTUAL CASH VALUE COVERAGE , AND THE ABILITY OF
247		-	CONSUMERS TO PURCHASE AFFORDABLE COVERAGE
248		-	.
249		-	SECTION 4. Appropriation. (1) For the 2023-24 state fiscal year,
250		-	$109,955 is appropriated to the department of regulatory agencies for use
251		-	by the division of insurance. This appropriation is from the division of
252		-	insurance cash fund created in section 10-1-103 (3), C.R.S. To implement
253		-	this act, the division may use this appropriation as follows:
254		-	(a) $64,139 for personal services, which amount is based on an
255		-	assumption that the division will require an additional 0.8 FTE;
256		-	(b) $7,750 for operating expenses; and
257		-	(c) $38,066 for the purchase of legal services.
258		-	(2) For the 2023-24 state fiscal year, $38,066 is appropriated to the
259		-	department of law. This appropriation is from reappropriated funds received
260		-	from the department of regulatory agencies under subsection (1)(c) of this
261		-	PAGE 6-HOUSE BILL 23-1174 section and is based on the assumption that the department of law will
262		-	require an additional 0.2 FTE. To implement this act, the department of law
263		-	may use this appropriation to provide legal services for the department of
264		-	regulatory agencies.
265		-	SECTION 5. Act subject to petition - effective date. Section
266		-	10-4-110.8 (8), Colorado Revised Statutes, as amended in section 3 of this
267		-	act, takes effect January 1, 2025, and the remainder of this act takes effect
268		-	at 12:01 a.m. on the day following the expiration of the ninety-day period
269		-	after final adjournment of the general assembly; except that, if a referendum
270		-	petition is filed pursuant to section 1 (3) of article V of the state constitution
271		-	against this act or an item, section, or part of this act within such period,
272		-	then the act, item, section, or part will not take effect unless approved by the
273		-	PAGE 7-HOUSE BILL 23-1174 people at the general election to be held in November 2024 and, in such
274		-	case, will take effect on the date of the official declaration of the vote
275		-	thereon by the governor; except that section 10-4-110.8 (8), Colorado
276		-	Revised Statutes, as amended in section 3 of this act, takes effect January
277		-	1, 2025.
278		-	____________________________ ____________________________
279		-	Julie McCluskie Steve Fenberg
280		-	SPEAKER OF THE HOUSE PRESIDENT OF
281		-	OF REPRESENTATIVES THE SENATE
282		-	____________________________ ____________________________
283		-	Robin Jones Cindi L. Markwell
284		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
285		-	OF REPRESENTATIVES THE SENATE
286		-	APPROVED________________________________________
287		-	(Date and Time)
288		-	_________________________________________
289		-	Jared S. Polis
290		-	GOVERNOR OF THE STATE OF COLORADO
291		-	PAGE 8-HOUSE BILL 23-1174
	253	+	HE USE OF
	254	+	RECONSTRUCTING COST ESTIMATOR TOOLS AND23
	255	+	SERVICES; AND24
	256	+	(c) T
	257	+	HE REQUIREMENTS TO PROVIDE INFORMATION IN THE25
	258	+	SUMMARY DISCLOSURE FORM TO CONSUMERS THAT EXPLAINS26
	259	+	REPLACEMENT COST COVERAGE , ACTUAL CASH VALUE COVERAGE , AND27
	260	+	1174
	261	+	-7- THE ABILITY OF CONSUMERS TO PURCHASE AFFORDABLE COVERAGE .1
	262	+	SECTION 4. Appropriation. (1) For the 2023-24 state fiscal2
	263	+	year, $109,955 is appropriated to the department of regulatory agencies3
	264	+	for use by the division of insurance. This appropriation is from the4
	265	+	division of insurance cash fund created in section 10-1-103 (3), C.R.S. To5
	266	+	implement this act, the division may use this appropriation as follows:6
	267	+	(a) $64,139 for personal services, which amount is based on an7
	268	+	assumption that the division will require an additional 0.8 FTE; 8
	269	+	(b) $7,750 for operating expenses; and9
	270	+	(c) $38,066 for the purchase of legal services.10
	271	+	(2) For the 2023-24 state fiscal year, $38,066 is appropriated to the11
	272	+	department of law. This appropriation is from reappropriated funds12
	273	+	received from the department of regulatory agencies under subsection13
	274	+	(1)(c) of this section and is based on the assumption that the department14
	275	+	of law will require an additional 0.2 FTE. To implement this act, the15
	276	+	department of law may use this appropriation to provide legal services for16
	277	+	the department of regulatory agencies.17
	278	+	SECTION 5. Act subject to petition - effective date. Section18
	279	+	10-4-110.8 (8), Colorado Revised Statutes, as amended in section 3 of19
	280	+	this act, takes effect January 1, 2025, and the remainder of this act takes20
	281	+	effect at 12:01 a.m. on the day following the expiration of the ninety-day21
	282	+	period after final adjournment of the general assembly; except that, if a22
	283	+	referendum petition is filed pursuant to section 1 (3) of article V of the23
	284	+	state constitution against this act or an item, section, or part of this act24
	285	+	within such period, then the act, item, section, or part will not take effect25
	286	+	unless approved by the people at the general election to be held in26
	287	+	1174
	288	+	-8- November 2024 and, in such case, will take effect on the date of the1
	289	+	official declaration of the vote thereon by the governor; except that2
	290	+	section 10-4-110.8 (8), Colorado Revised Statutes, as amended in section3
	291	+	3 of this act, takes effect January 1, 2025.4
	292	+	1174
	293	+	-9-