First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0267.01 Kristen Forrestal x4217
HOUSE BILL 25-1182
House Committees Senate Committees
Business Affairs & Labor
A BILL FOR AN ACT
C
ONCERNING TOOLS TO ASSESS RISK FOR THE PURPOSE OF101
UNDERWRITING PROPERTY INSURANCE POLICIES .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
.)
For the purposes of underwriting homeowners and other property
insurance policies, the bill requires insurers who use a wildfire risk
model, a catastrophe model, a combination of models, or a scoring
method to adhere to specific requirements that concern the sharing of
information with the commissioner of insurance and the public, the
inclusion of specific activities in the models, and providing notices to
HOUSE SPONSORSHIP
Titone and Brown,
SENATE SPONSORSHIP
Cutter and Simpson,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. policyholders.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 10-4-124 as2
follows:3
10-4-124. Homeowner's insurance - underwriting - wildfire4
risk models - requirements - definitions - rules. (1) A
S USED IN THIS5
SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :6
(a) "C
ATASTROPHE MODEL" MEANS A TOOL, INSTRUMENTALITY,7
MEANS, OR PRODUCT, INCLUDING A MAP-BASED TOOL, A COMPUTER-BASED8
TOOL, OR A SIMULATION THAT IS USED BY AN INSURER OR A REINSURER TO9
ESTIMATE POTENTIAL LOSSES FROM CATASTROPHIC EVENTS .10
(b) "W
ILDFIRE RISK MODEL" MEANS A TOOL, INSTRUMENTALITY,11
MEANS, OR PRODUCT, INCLUDING A MAP-BASED TOOL, A COMPUTER-BASED12
TOOL, OR A SIMULATION, THAT IS USED BY AN INSURER OR A REINSURER,13
IN WHOLE OR IN PART, TO MEASURE OR ASSESS THE WILDFIRE RISK14
ASSOCIATED WITH A RESIDENTIAL OR COMMERCIAL PROPERTY OR15
COMMUNITY FOR PURPOSES OF RATING , CLASSIFYING, OR PRICING BASED16
ON WILDFIRE RISK OR ESTIMATING RISKS OR LOSSES CORRESPONDING TO17
THE WILDFIRE RISK CLASSIFICATIONS.18
(2) A
N INSURER OR REINSURER THAT USES A WILDFIRE RISK MODEL19
OR A CATASTROPHE MODEL OR SCORING METHOD TO ASSIGN RISK SHALL20
PROVIDE THE WILDFIRE RISK MODEL, CATASTROPHE MODEL, OR SCORING21
METHOD USED TO ASSIGN RISK, INCLUDING A DESCRIPTION OF THE MODEL,22
THE IMPACT OF THE MODEL ON RATES, AND AN EXPLANATION OF THE USE23
OF THE MODEL IN UNDERWRITING DECISIONS , TO THE COMMISSIONER AS24
PART OF THE INSURER'S COMPLETE FILING.25
HB25-1182-2- (3) AN INSURER OR REINSURER THAT USES A WILDFIRE RISK1
MODEL, A CATASTROPHE MODEL, OR A COMBINATION OF MODELS SHALL2
ENSURE THAT A WILDFIRE RISK MODEL , CATASTROPHE MODEL, OR THE3
COMBINATION OF MODELS INCORPORATES :4
(a) P
ROPERTY-SPECIFIC MITIGATION ACTIONS SUCH AS5
ESTABLISHING DEFENSIBLE SPACE, INCORPORATING BUILDING HARDENING6
MEASURES, OR RECEIVING CERTIFICATION FROM AN ENTITY WITH7
EXPERTISE IN MITIGATION OF PROPERTIES AGAINST WILDFIRE ;8
(b) C
OMMUNITY-LEVEL MITIGATION ACTIVITIES OR DESIGNATIONS;9
AND10
(c) S
TATE-LEVEL ACTIVITIES TO ADDRESS WILDFIRE RISK ,11
INCLUDING THE PURCHASE OF EQUIPMENT TO COMBAT WILDFIRES .12
(4) A
N INSURER SHALL POST ON ITS PUBLIC WEBSITE READILY13
ACCESSIBLE INFORMATION ON THE PREMIUM DISCOUNTS , INCENTIVES, OR14
OTHER PREMIUM ADJUSTMENTS THAT ARE AVAILABLE TO POLICYHOLDERS15
WHO UNDERTAKE SPECIFIED MITIGATION EFFORTS AND THE PROCESS FOR16
APPEALING A WILDFIRE RISK SCORE. THE WEBSITE SHALL IDENTIFY, AS17
APPLICABLE:18
(a) W
ILDFIRE RISK MITIGATION ACTIONS FOR THE POLICYHOLDER19
TO UNDERTAKE THAT WOULD RESULT IN A DISCOUNT , INCENTIVE, OR20
OTHER PREMIUM ADJUSTMENT ; AND21
(b) T
HE AMOUNT OF THE DISCOUNT , INCENTIVE, OR OTHER22
PREMIUM ADJUSTMENT ASSOCIATED WITH EACH WILDFIRE RISK23
MITIGATION ACTION.24
(5) (a) A
N INSURER THAT USES A WILDFIRE RISK MODEL OR RISK25
SCORE TO UNDERWRITE, NONRENEW, PRICE, CREATE A RATE DIFFERENTIAL,26
OR SURCHARGE THE PREMIUM BASED UPON THE POLICYHOLDER 'S OR27
HB25-1182
-3- APPLICANT'S WILDFIRE RISK SHALL PROVIDE AN ANNUAL WRITTEN NOTICE1
TO EACH POLICYHOLDER OR APPLICANT UPON APPLICATION FOR PROPERTY2
INSURANCE OF THE WILDFIRE RISK SCORE AND ANY OTHER WILDFIRE RISK3
CLASSIFICATION USED BY THE INSURER TO UNDERWRITE , NONRENEW,4
PRICE, CREATE A RATE DIFFERENTIAL, OR SURCHARGE THE PREMIUM BASED5
UPON THE POLICYHOLDER'S OR APPLICANT'S WILDFIRE RISK.6
(b) T
HE NOTICE SHALL INCLUDE:7
(I) A
PLAIN-LANGUAGE EXPLANATION OF THE WILDFIRE RISK8
SCORE OR OTHER WILDFIRE RISK CLASSIFICATION ;9
(II) T
HE RANGE OF THE SCORES OR CLASSIFICATIONS THAT COULD10
POTENTIALLY BE ASSIGNED TO THE PROPERTY ;11
(III) T
HE RELATIVE POSITION OF THE SCORE OR CLASSIFICATION12
ASSIGNED TO THE PROPERTY WITHIN THAT RANGE OF POSSIBLE SCORES OR13
CLASSIFICATIONS;14
(IV) T
HE IMPACT OF THE SCORE OR CLASSIFICATION ON THE RATE15
OR PREMIUM;16
(V) A
WRITTEN EXPLANATION OF WHY THE POLICYHOLDER OR17
APPLICANT RECEIVED THE ASSIGNED SCORE OR CLASSIFICATION THAT18
IDENTIFIES THE SPECIFIC FEATURES OF THE PROPERTY THAT INFLUENCED19
THE ASSIGNMENT OF THE SCORE OR CLASSIFICATION ; AND20
(VI) T
HE IMPACT, IF ANY, THAT EACH WILDFIRE RISK MITIGATION21
ACTION COULD HAVE ON A WILDFIRE RISK SCORE OR CLASSIFICATION22
ASSIGNED TO THE PROPERTY.23
(6) T
HE INSURER SHALL PROVIDE THE WILDFIRE RISK SCORE OR24
CLASSIFICATION TO THE POLICYHOLDER OR APPLICANT :25
(a) F
OR APPLICANTS, NO LATER THAN FIFTEEN DAYS AFTER THE26
SUBMISSION OF THE APPLICANT 'S COMPLETED APPLICATION TO THE27
HB25-1182
-4- INSURER;1
(b) F
OR POLICYHOLDERS, AT LEAST SIXTY DAYS BEFORE A2
RENEWAL OF A POLICY;3
(c) F
OR POLICYHOLDERS, AT LEAST NINETY DAYS BEFORE A4
NONRENEWAL OF A POLICY; AND5
(d) F
OR A POLICYHOLDER OR APPLICANT, IF THE POLICYHOLDER OR6
APPLICANT HAS COMPLETED A MITIGATION MEASURE ON THE PROPERTY7
SINCE THE TIME OF THE LAST APPLICATION TO OR RENEWAL BY THE8
INSURER, NO LATER THAN THIRTY DAYS AFTER THE SUBMISSION TO THE9
INSURER OF THE POLICYHOLDER 'S OR APPLICANT'S REQUEST THAT THE10
INSURER PROVIDE A REVISED WILDFIRE RISK SCORE OR WILDFIRE RISK11
CLASSIFICATION.12
(7) A
POLICYHOLDER OR APPLICANT FOR A POLICY OF PROPERTY13
INSURANCE WHO DISAGREES WITH THE WILDFIRE RISK SCORE , OR WITH14
ANY OTHER WILDFIRE RISK CLASSIFICATION ASSIGNED TO THE15
POLICYHOLDER'S OR APPLICANT'S PROPERTY, MAY APPEAL THE SCORE16
DIRECTLY TO THE INSURER . THE INSURER SHALL NOTIFY THE17
POLICYHOLDER OR APPLICANT IN WRITING OF THE RIGHT TO APPEAL THE18
WILDFIRE RISK SCORE OR OTHER WILDFIRE RISK CLASSIFICATION WHEN THE19
SCORE OR CLASSIFICATION IS PROVIDED TO THE POLICYHOLDER OR20
APPLICANT AS REQUIRED BY SUBSECTION (5) OF THIS SECTION. IF THE21
POLICYHOLDER OR APPLICANT APPEALS THE WILDFIRE RISK SCORE OR22
OTHER WILDFIRE RISK CLASSIFICATION , THE INSURER SHALL23
ACKNOWLEDGE RECEIPT OF THE APPEAL IN WRITING WITHIN TEN24
CALENDAR DAYS AFTER RECEIPT OF THE APPEAL . THE INSURER SHALL25
RESPOND TO THE APPEAL IN WRITING WITH A RECONSIDERATION AND26
DECISION WITHIN THIRTY CALENDAR DAYS AFTER RECEIVING THE APPEAL .27
HB25-1182
-5- IF AN APPEAL IS DENIED, THE INSURER SHALL, UPON REQUEST BY THE1
COMMISSIONER, FORWARD A COPY OF THE APPEAL AND THE INSURER 'S2
RESPONSE, TO THE COMMISSIONER.3
(8) T
HE COMMISSIONER MAY ADOPT RULES TO IMPLEMENT THIS4
SECTION.5
SECTION 2. Act subject to petition - effective date -6
applicability. (1) This act takes effect January 1, 2026; except that, if a7
referendum petition is filed pursuant to section 1 (3) of article V of the8
state constitution against this act or an item, section, or part of this act9
within the ninety-day period after final adjournment of the general10
assembly, then the act, item, section, or part will not take effect unless11
approved by the people at the general election to be held in November12
2026 and, in such case, will take effect January 1, 2026, or on the date of13
the official declaration of the vote thereon by the governor, whichever is14
later.15
(2) This act applies to property insurance policies issued or16
renewed on or after the applicable effective date of this act.17
HB25-1182
-6-