First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
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
3rd Reading Unamended
March 20, 2025
HOUSE
Amended 2nd Reading
March 19, 2025
HOUSE SPONSORSHIP
Titone and Brown, Bacon, Bird, Boesenecker, Joseph, Lindsay, Marshall, McCluskie,
Ricks, Stewart K., Story
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 insurance - underwriting - wildfire risk4
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
TO ESTIMATE9
POTENTIAL LOSSES FROM CATASTROPHIC EVENTS .10
(b) "COMMUNITY-LEVEL MITIGATION ACTION" MEANS A11
SCIENCE-BASED MITIGATION ACTION AS DEMONSTRATED BY A12
COMMUNITY- OR NEIGHBORHOOD-LEVEL DESIGNATION OR CERTIFICATION13
OR AS UNDERTAKEN BY A GOVERNMENT ENTITY .14
(c) "PROPERTY-SPECIFIC MITIGATION ACTION" MEANS A15
SCIENCE-BASED MITIGATION ACTION AS DEMONSTRATED BY THE16
"WILDFIRE PREPARED HOME" DESIGNATION FROM THE INSURANCE17
INSTITUTE FOR BUSINESS AND HOME SAFETY OR BY A SIMILAR18
MITIGATION PROGRAM THAT INCLUDES A VERIFICATION AND19
CERTIFICATION PROCESS.20
(d) "WILDFIRE RISK MODEL" MEANS A TOOL, INSTRUMENTALITY,21
MEANS, OR PRODUCT, INCLUDING A MAP-BASED TOOL, A COMPUTER-BASED22
TOOL, OR A SIMULATION, THAT IS USED BY AN INSURER IN WHOLE OR IN23
PART, TO MEASURE OR ASSESS THE WILDFIRE RISK ASSOCIATED WITH A24
RESIDENTIAL PROPERTY OR COMMUNITY FOR PURPOSES OF RATING ,25
1182-2- CLASSIFYING, OR PRICING BASED ON WILDFIRE RISK OR ESTIMATING RISKS1
OR LOSSES CORRESPONDING TO THE WILDFIRE RISK CLASSIFICATIONS .2
(2) (a) AN INSURER THAT USES A WILDFIRE RISK MODEL OR A3
CATASTROPHE MODEL OR SCORING METHOD TO ASSIGN RISK SHALL4
PROVIDE THE WILDFIRE RISK MODEL, CATASTROPHE MODEL, OR SCORING5
METHOD USED TO ASSIGN RISK, INCLUDING A DESCRIPTION OF THE MODEL,6
THE IMPACT OF THE MODEL ON RATES, AN ACTUARIAL JUSTIFICATION FOR7
ALL RATING FACTORS, INCLUDING MITIGATION DISCOUNTS OFFERED, AND8
AN EXPLANATION OF THE USE OF THE MODEL IN UNDERWRITING DECISIONS ,9
TO THE COMMISSIONER AS PART OF THE INSURER 'S COMPLETE FILING.10
(b) TO THE EXTENT DATA IS AVAILABLE AND AS ESTABLISHED BY11
RULE, AN INSURER SHALL SUBMIT TO THE DIVISION, AS PART OF THEIR RATE12
FILINGS, INFORMATION ON HOW AND WHETHER THE MODELS USED FOR13
UNDERWRITING AND RATING ACCOUNT FOR STATE-WIDE MITIGATION14
ACTIVITIES, SUCH AS FOREST TREATMENT , INVESTMENTS IN WILDFIRE15
FIGHTING AND MITIGATION EQUIPMENT, AND UTILITY WILDFIRE16
MITIGATION ACTIVITIES UNDERTAKEN PURSUANT TO A WILDFIRE17
MITIGATION PLAN APPROVED BY THE PUBLIC UTILITIES COMMISSION .18
(c) MODELS SUBMITTED TO THE COMMISSIONER PURSUANT TO THIS19
SECTION SHALL BE TREATED AS TRADE SECRETS AND NOT SUBJECT TO20
DISCLOSURE UNDER THE "COLORADO OPEN RECORDS ACT, PART 2 OF21
ARTICLE 72 OF TITLE 24.22
(3) A
N INSURER
THAT USES A WILDFIRE RISK MODEL , A23
CATASTROPHE MODEL, OR A COMBINATION OF MODELS SHALL ENSURE THE24
FOLLOWING FACTORS ARE EITHER INCORPORATED IN THE WILDFIRE RISK25
MODEL, CATASTROPHE MODEL, OR COMBINATION OF MODELS OR ARE26
OTHERWISE DEMONSTRABLY INCLUDED IN THE INSURER'S UNDERWRITING27
1182
-3- AND PRICING:1
(a) P
ROPERTY-SPECIFIC MITIGATION ACTIONS SUCH AS2
ESTABLISHING DEFENSIBLE SPACE, INCORPORATING BUILDING HARDENING3
MEASURES, OR RECEIVING CERTIFICATION FROM AN ENTITY WITH4
EXPERTISE IN MITIGATION OF PROPERTIES AGAINST WILDFIRE ;
AND5
(b) C
OMMUNITY-LEVEL MITIGATION ACTIVITIES OR
DESIGNATIONS,6
INCLUDING FOREST TREATMENT AND OTHER FUEL REDUCTION ACTIVITIES. 7
(4) IF AN INSURER DOES NOT INCORPORATE PROPERTY -SPECIFIC8
AND COMMUNITY-LEVEL MITIGATION ACTIONS INTO ITS MODELS , THE9
INSURER SHALL PROVIDE DISCOUNTS TO POLICYHOLDERS WHO CAN10
DEMONSTRATE THAT PROPERTY -SPECIFIC MITIGATION ACTIONS HAVE BEEN11
UNDERTAKEN ON THE PROPERTY OR COMMUNITY -LEVEL MITIGATION12
ACTIONS HAVE BEEN UNDERTAKEN IN SUFFICIENT PROXIMITY TO THE13
PROPERTY TO REDUCE THE RISK OF LOSS.14
(5) AN INSURER SHALL POST ON ITS PUBLIC WEBSITE READILY15
ACCESSIBLE INFORMATION ON THE PREMIUM DISCOUNTS , INCENTIVES, OR16
OTHER PREMIUM ADJUSTMENTS THAT ARE AVAILABLE TO POLICYHOLDERS17
WHO UNDERTAKE PROPERTY-SPECIFIC MITIGATION ACTIONS OR PROVIDE18
EVIDENCE OF COMMUNITY-LEVEL MITIGATION ACTIONS AND THE PROCESS19
FOR APPEALING A WILDFIRE RISK SCORE. THE WEBSITE SHALL IDENTIFY, AS20
APPLICABLE:21
(a) PROPERTY-SPECIFIC MITIGATION ACTIONS FOR THE22
POLICYHOLDER TO UNDERTAKE AND COMMUNITY-LEVEL MITIGATION23
ACTIONS THAT COULD RESULT IN A DISCOUNT , INCENTIVE, OR OTHER24
PREMIUM ADJUSTMENT; AND25
(b) T
HE AMOUNT OF THE DISCOUNT , INCENTIVE, OR OTHER26
PREMIUM ADJUSTMENT ASSOCIATED WITH EACH
ACTION.27
1182
-4- (6) (a) AN INSURER THAT PROVIDES A MITIGATION DISCOUNT OR1
THAT USES A WILDFIRE RISK MODEL OR RISK SCORE TO UNDERWRITE ,2
NONRENEW, PRICE, CREATE A RATE DIFFERENTIAL, OR SURCHARGE THE3
PREMIUM BASED UPON THE POLICYHOLDER 'S OR APPLICANT'S WILDFIRE4
RISK SHALL PROVIDE AN ANNUAL WRI TTEN NOTICE TO EACH5
POLICYHOLDER OR APPLICANT UPON APPLICATION FOR PROPERTY6
INSURANCE OF THE APPLICABLE MITIGATION DISCOUNTS, THE WILDFIRE7
RISK SCORE, AND ANY OTHER WILDFIRE RISK CLASSIFICATION USED BY THE8
INSURER TO UNDERWRITE , NONRENEW, PRICE, CREATE A RATE9
DIFFERENTIAL, OR SURCHARGE THE PREMIUM BASED UPON THE10
POLICYHOLDER'S OR APPLICANT'S WILDFIRE RISK.11
(b) T
HE NOTICE SHALL INCLUDE:12
(I) A
PLAIN-LANGUAGE EXPLANATION OF THE WILDFIRE RISK13
SCORE OR OTHER WILDFIRE RISK
CLASSIFICATION, INCLUDING AN14
EXPLANATION THAT INSURERS MAY USE DIFFERENT MODELS AND HAVE15
DIFFERENT RISK SCORE RANGES THAT COULD RESULT IN DIFFERENT RISK16
SCORES FROM OTHER INSURERS ;17
(II) T
HE RANGE OF THE SCORES OR CLASSIFICATIONS THAT COULD18
POTENTIALLY BE ASSIGNED TO THE PROPERTY ;19
(III) T
HE RELATIVE POSITION OF THE SCORE OR CLASSIFICATION20
ASSIGNED TO THE PROPERTY WITHIN THAT RANGE OF POSSIBLE SCORES OR21
CLASSIFICATIONS PROVIDED BY THE INSURER 'S RISK MODEL;22
(IV) A WRITTEN EXPLANATION OF WHY THE POLICYHOLDER OR23
APPLICANT RECEIVED THE ASSIGNED SCORE OR CLASSIFICATION THAT24
IDENTIFIES THE PRIMARY FEATURES OF THE PROPERTY THAT INFLUENCED25
THE ASSIGNMENT OF THE SCORE OR CLASSIFICATION ; AND26
(V) THE IMPACT, IF ANY, THAT EACH PROPERTY-SPECIFIC27
1182
-5- MITIGATION OR COMMUNITY-LEVEL MITIGATION ACTION COULD HAVE ON1
A WILDFIRE RISK SCORE OR CLASSIFICATION ASSIGNED TO THE PROPERTY .2
(7) THE INSURER SHALL PROVIDE THE WILDFIRE RISK SCORE OR3
CLASSIFICATION TO THE POLICYHOLDER OR APPLICANT :4
(a) F
OR APPLICANTS, NO LATER THAN FIFTEEN DAYS AFTER THE5
SUBMISSION OF THE APPLICANT 'S COMPLETED APPLICATION TO THE6
INSURER;7
(b) F
OR POLICYHOLDERS,
IN THE OFFER OF RENEWAL;8
(c) FOR POLICYHOLDERS THAT ARE NOT BEING OFFERED A9
RENEWAL, WITH THE NONRENEWAL NOTICE ; AND10
(d) F
OR A POLICYHOLDER OR APPLICANT, IF THE POLICYHOLDER OR11APPLICANT HAS COMPLETED A PROPERTY-SPECIFIC MITIGATION ACTION OR12
PROVIDES EVIDENCE OF A COMMUNITY-LEVEL MITIGATION ACTION IN13
SUFFICIENT PROXIMITY TO THE PROPERTY TO REDUCE THE RISK OF LOSS14
SINCE THE TIME OF THE LAST APPLICATION TO OR RENEWAL BY THE15
INSURER, NO LATER THAN THIRTY DAYS AFTER THE SUBMISSION TO THE16
INSURER OF THE POLICYHOLDER 'S OR APPLICANT'S REQUEST THAT THE17
INSURER PROVIDE A REVISED WILDFIRE RISK SCORE OR WILDFIRE RISK18
CLASSIFICATION.19
(8) A POLICYHOLDER OR APPLICANT FOR A POLICY OF PROPERTY20
INSURANCE WHOSE WILDFIRE RISK MODEL SCORE, WILDFIRE RISK21
CLASSIFICATION ASSIGNED TO THE PROPERTY, OR APPLICABLE MITIGATION22
DISCOUNT IS INACCURATE AND PROVIDES EVIDENCE OF THE23
PROPERTY-SPECIFIC OR COMMUNITY-LEVEL MITIGATION ACTION MAY24
APPEAL THE SCORE DIRECTLY TO THE INSURER . THE INSURER SHALL25
NOTIFY THE POLICYHOLDER OR APPLICANT IN WRITING OF THE RIGHT TO26
APPEAL THE WILDFIRE RISK SCORE OR OTHER WILDFIRE RISK27
1182
-6- CLASSIFICATION OR APPLICABLE MITIGATION DISCOUNT WHEN THE SCORE1
OR CLASSIFICATION OR DISCOUNT IS PROVIDED TO THE POLICYHOLDER OR2
APPLICANT AS REQUIRED BY SUBSECTION (6) OF THIS SECTION. IF THE3
POLICYHOLDER OR APPLICANT APPEALS THE WILDFIRE RISK SCORE OR4
OTHER WILDFIRE RISK CLASSIFICATION OR APPLICABLE WILDFIRE5
DISCOUNT, THE INSURER SHALL ACKNOWLEDGE RECEIPT OF THE APPEAL IN6
WRITING WITHIN TEN CALENDAR DAYS AFTER RECEIPT OF THE APPEAL . THE7
INSURER SHALL RESPOND TO THE APPEAL IN WRITING WITH A8
RECONSIDERATION AND DECISION WITHIN THIRTY CALENDAR DAYS AFTER9
RECEIVING THE APPEAL. IF AN APPEAL IS DENIED, THE INSURER SHALL,10
UPON REQUEST BY THE COMMISSIONER , FORWARD A COPY OF THE APPEAL11
AND THE INSURER'S RESPONSE, TO THE COMMISSIONER.12
(9) THIS SECTION APPLIES TO PROPERTY INSURANCE COVERAGE13
PROVIDED BY THE FAIR ACCESS TO INSURANCE REQUIREMENTS PLAN14
ASSOCIATION CREATED IN SECTION 10-4-1804.15
(10) THIS SECTION APPLIES ONLY TO HOMEOWNER 'S INSURANCE16
POLICIES AS DEFINED IN SECTION 10-4-110.6, PROPERTY INSURANCE17
POLICIES COVERING CONDOMINIUM UNITS AS DEFINED IN SECTION18
38-33-103 (1), AND MULTIFAMILY RESIDENTIAL HOUSING AS DEFINED IN19
SECTION 24-32-3701 (9).20
(11) THE COMMISSIONER MAY ADOPT RULES TO IMPLEMENT THIS21
SECTION.22
SECTION 2. Act subject to petition - effective date -23
applicability. (1) This act takes effect July 1, 2026; except that, if a24
referendum petition is filed pursuant to section 1 (3) of article V of the25
state constitution against this act or an item, section, or part of this act26
within the ninety-day period after final adjournment of the general27
1182
-7- assembly, then the act, item, section, or part will not take effect unless1
approved by the people at the general election to be held in November2
2026 and, in such case, will take effect on the date of the official3
declaration of the vote thereon by the governor.4
(2) This act applies to property insurance policies issued or5
renewed on or after the applicable effective date of this act.6
1182
-8-