HB 25-1182
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1182: RISK MODEL USE IN PROPERTY INSURANCE POLICIES
Prime Sponsors:
Rep. Titone; Brown
Sen. Cutter; Simpson
Published for: Senate Business, Labor, and Tech.
Drafting number: LLS 25-0267
Fiscal Analyst:
Brendan Fung, 303-866-4781
brendan.fung@coleg.gov
Version: First Revised Note
Date: March 27, 2025
Fiscal note status: This revised fiscal note reflects the reengrossed bill
Summary Information
Overview. The bill establishes requirements for property insurers that use risk management models.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
Minimal State Workload
Appropriations. No appropriation is required.
Table 1
State Fiscal Impacts
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $0 $0
State Expenditures $0 $0
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 0.0 FTE 0.0 FTE
Page 2
March 27, 2025 HB 25-1182
Summary of Legislation
The bill requires certain insurance companies that use select risk management models, such as a
wildfire risk or catastrophe model, to:
share certain information about the model with the Division of Insurance in the Department
of Regulatory Agencies (DORA) as part of the insurer’s filing;
consider any mitigation effort when assessing risk;
publish information on the rewards that are available to policyholders who undertake
mitigation efforts;
publish the process for appealing a wildfire risk score, classification, or mitigation discount;
provide policyholders with an annual notice of their mitigation discounts, wildfire risk score,
and other classifications used to underwrite the policy; and
offer discounts to certain policyholders when mitigation actions are not included in the risk
management model.
Policyholders whose wildfire risk score, classification, or mitigation discount are inaccurate may
appeal to the insurer, who must respond with a decision within 30 days.
State Expenditures
Starting in FY 2026-27, workload in DORA will minimally increase to promulgate rules, establish
guidance for insurance filings, conduct outreach to property insurers, review filings for risk
model scoring, and respond to complaints. The department may require legal services, provided
by the Department of Law, related to rulemaking, implementation, and ongoing administration
of the program, as well as a rise in complaints. Given that DORA already reviews these insurance
filings, this workload is expected to be minimal and no change in appropriations is required.
Effective Date
The bill takes effect July 1, 2026, assuming no referendum petition is filed, and applies to
property insurance policies issued or renewed on or after this date.
State and Local Government Contacts
Law Regulatory Agencies
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.