First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 25-0364.01 Renee Leone x2695
SENATE BILL 25-058
Senate Committees House Committees
Health & Human Services
A BILL FOR AN ACT
C
ONCERNING A MODEL ACT TO PROVIDE A FRAMEWORK THAT ALLOWS101
INSURANCE COMPANIES TO GIVE REBATES THAT MEET SPECIFIED102
CRITERIA TO MAINTAIN CONSUMER PROTECTIONS .103
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
.)
The bill creates the "Model Rebate Reform Act" to modernize the
law concerning insurance rebates by recognizing new insurance products
while maintaining necessary consumer protections. The bill allows an
insurer or insurance producer to give a gift valued under $250 in
connection with the marketing, purchase, or retention of an insurance
SENATE
Amended 2nd Reading
March 3, 2025
SENATE SPONSORSHIP
Snyder,
HOUSE SPONSORSHIP
Rydin,
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. contract and to conduct a free raffle or drawing with prizes valued up to
$500.
Additionally, the bill provides that an insurer or insurance
producer may give a free or discounted product or service in conjunction
with or related to an insurance contract if the product or service:
! Is intended to educate about, assess, monitor, control,
mitigate, or protect an individual against loss of life, health,
or property; or
! Has a nexus to or enhances the value of the insurance
benefits.
Next, the bill provides that an insurer or insurance producer may
provide an additional free or discounted service if the service is at least
tangentially related to an insurance contract or the administration of an
insurance contract, the receipt of the service is not contingent on the
purchase of insurance, and the service is offered on the same terms to all
potential insurance customers. Before the purchase of insurance, receipt
of a quote for insurance, or designation of an agent of record, the insurer
or insurance producer providing the service shall disclose in writing to the
recipient that receipt of the service is not contingent on the purchase of
insurance.
Lastly, the bill permits the commissioner of insurance to adopt
rules as necessary to effectuate the provisions of the bill, including
adjusting the financial limitations on gifts and prizes as necessary for
inflation.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 10-3-1104, amend
2
(1)(g) and (2) introductory portion; and add (2)(e), (2.1), (2.2), (2.3),3
(2.4), (2.5), (2.6), (2.7), and (6) as follows:4
10-3-1104. Unfair methods of competition - unfair or deceptive5
practices - rules - definitions. (1) The following are defined as unfair6
methods of competition and unfair or deceptive acts or practices in the7
business of insurance:8
(g) Rebates: Except as
OTHERWISE PROVIDED IN THIS SECTION AND
9
AS otherwise expressly provided by law, knowingly permitting, or10
offering to make, or making any contract of insurance or agreement as to11
058-2- such contract, other than as plainly expressed in the insurance contract1
issued thereon, or paying, or allowing, or giving, or offering to pay,2
allow, or give, directly or indirectly, as inducement to such insurance or3
annuity, any rebate of premiums payable on the contract, or any special4
favor or advantage in the dividends or other benefits thereon ON THE5
CONTRACT OR ANNUITY , or any valuable consideration or inducement6
whatever not specified in the contract; or giving, or selling, or purchasing,7
or offering to give, sell, or purchase, as inducement to such insurance8
contract or annuity or in connection therewith WITH THE INSURANCE9
CONTRACT OR ANNUITY , any stocks, bonds, or other securities of any10
insurance company or other corporation, association, or partnership, or11
any dividends or profits accrued thereon ON THE STOCKS, BONDS, OR12
OTHER SECURITIES, or anything of value whatsoever not specified in the13
contract;14
(2) Nothing in paragraph (f) or (g) of subsection (1) SUBSECTION15
(1)(f)
OR (1)(g) of this section shall be construed as including within the
16
definition of discrimination or rebates any of the following practices:17
(e) O
FFERING OR PROVIDING, BY OR THROUGH AN EMPLOYEE ,
18
AFFILIATE, OR THIRD-PARTY REPRESENTATIVE OF AN INSURER OR19
INSURANCE PRODUCER, A VALUE-ADDED PRODUCT OR SERVICE AT NO COST20
OR REDUCED COST, WHEN THE PRODUCT OR SERVICE IS NOT SPECIFIED IN21
THE INSURANCE POLICY, IF THE PRODUCT OR SERVICE:22
(I) R
ELATES TO THE INSURANCE COVERAGE ; AND
23
(II) I
S PRIMARILY AIMED TO ACHIEVE ONE OR MORE OF THE
24
FOLLOWING:25
(A) P
ROVIDE LOSS MITIGATION OR LOSS CONTROL ;
26
(B) R
EDUCE CLAIM COSTS OR CLAIM SETTLEMENT COSTS ;
27
058
-3- (C) PROVIDE EDUCATION ABOUT LIABILITY RISK OR RISK OF LOSS1
TO INDIVIDUALS OR PROPERTY;2
(D) M
ONITOR OR ASSESS RISK, IDENTIFY SOURCES OF RISK, OR
3
DEVELOP STRATEGIES FOR ELIMINATING OR REDUCING RISK ;4
(E) E
NHANCE HEALTH;
5
(F) P
ROMOTE FINANCIAL WELLNESS THROUGH ITEMS SUCH AS
6
EDUCATIONAL OR FINANCIAL PLANNING SERVICES ;7
(G) P
ROVIDE POST-LOSS SERVICES;
8
(H) E
NCOURAGE BEHAVIORAL CHANGES TO IMPROVE THE HEALTH
9
OR REDUCE THE RISK OF DEATH OR DISABILITY OF A CUSTOMER ; OR10
(I) A
SSIST IN THE ADMINISTRATION OF EMPLOYEE OR RETIREE
11
BENEFIT INSURANCE COVERAGE .12
(2.1) T
HE COST TO AN INSURER OR INSURANCE PRODUCER
13
OFFERING A PRODUCT OR SERVICE TO A CUSTOMER PURSUANT TO14
SUBSECTION (2)(e) OF THIS SECTION MUST BE REASONABLE IN15
COMPARISON TO THAT CUSTOMER 'S PREMIUMS OR INSURANCE COVERAGE .16
(2.2) I
F AN INSURER OR INSURANCE PRODUCER IS OFFERING A
17
PRODUCT OR SERVICE PURSUANT TO SUBSECTION (2)(e) OF THIS SECTION,18
THE INSURER OR INSURANCE PRODUCER SHALL PROVIDE A CUSTOMER WITH19
CONTACT INFORMATION TO ASSIST THE CUSTOMER WITH QUESTIONS20
REGARDING THE PRODUCT OR SERVICE .21
(2.3) T
O ENSURE CONSUMER PROTECTION WHILE IMPLEMENTING
22
THE PERMITTED PRACTICES SET FORTH IN SUBSECTION (2) OF THIS SECTION,23
THE COMMISSION MAY ADOPT RULES TO IMPLEMENT AND ENFORCE24
SUBSECTION (1)(g) OF THIS SECTION.25
(2.4) T
HE AVAILABILITY OF A PRODUCT OR SERVICE OFFERED
26
PURSUANT TO SUBSECTION (2)(e) OF THIS SECTION MUST BE:27
058
-4- (a) BASED ON DOCUMENTED , OBJECTIVE CRITERIA THAT IS1
MAINTAINED BY THE INSURER OR INSURANCE PRODUCER AND MUST BE2
PRODUCED UPON REQUEST BY THE DIVISION ; AND3
(b) O
FFERED IN A MANNER THAT IS NOT UNFAIRLY
4
DISCRIMINATORY.5
(2.5) (a) I
F AN INSURER OR INSURANCE PRODUCER DOES NOT HAVE
6
SUFFICIENT EVIDENCE BUT HAS A GOOD FAITH BELIEF THAT A PRODUCT OR7
SERVICE MEETS THE CRITERIA SET FORTH IN SUBSECTIONS (2)(e)(II)(A) TO8
(2)(e)(II)(I)
OF THIS SECTION, THE INSURER OR INSURANCE PRODUCER
9
SHALL PROVIDE THE PRODUCT OR SERVICE IN A MANNER THAT IS NOT10
UNFAIRLY DISCRIMINATORY AS PART OF A PILOT OR TESTING PROGRAM FOR11
NO MORE THAN ONE YEAR.12
(b) (I) A
N INSURER OR INSURANCE PRODUCER SHALL NOTIFY AND
13
RECEIVE APPROVAL FROM THE DIVISION FOR A PILOT OR TESTING PROGRAM14
PRIOR TO LAUNCHING THE PROGRAM .15
(II) T
HE DIVISION SHALL APPROVE OR DENY A PILOT OR TESTING
16
PROGRAM NO LATER THAN THIRTY DAYS AFTER RECEIVING NOTIFICATION17
PURSUANT TO SUBSECTION (2.5)(b)(I) OF THIS SECTION.18
(2.6) (a) A
N INSURER OR INSURANCE PRODUCER MAY :
19
(I) O
FFER OR GIVE A NONCASH GIFT, ITEM, OR SERVICE, INCLUDING
20
A MEAL OR CHARITABLE DONATION , TO OR ON BEHALF OF A CUSTOMER IN21
CONNECTION WITH THE MARKETING , SALE, PURCHASE, OR RETENTION OF22
AN INSURANCE CONTRACT IF THE COST DOES NOT EXCEED AN AMOUNT23
DETERMINED TO BE REASONABLE BY THE COMMISSIONER PER POLICY YEAR24
PER TERM; OR25
(II) O
FFER OR GIVE A NONCASH GIFT , ITEM, OR SERVICE,
26
INCLUDING A MEAL OR CHARITABLE DONATION , TO OR ON BEHALF OF A27
058
-5- CUSTOMER, INCLUDING A COMMERCIAL OR INSTITUTIONAL CUSTOMER , IN1
CONNECTION WITH THE MARKETING , SALE, PURCHASE, OR RETENTION OF2
AN INSURANCE CONTRACT IF:3
(A) T
HE COST IS REASONABLE IN COMPARISON TO THE PREMIUM OR
4
PROPOSED PREMIUM; AND5
(B) T
HE COST OF THE GIFT, ITEM, OR SERVICE IS NOT INCLUDED IN
6
ANY AMOUNT CHARGED TO ANOTHER PERSON OR ENTITY .7
(b) (I) A
NY OFFER, GIFT, OR DRAWING MADE OR CONDUCTED
8
PURSUANT TO THIS SUBSECTION (2.6) MUST BE OFFERED IN A MANNER9
THAT IS NOT UNFAIRLY DISCRIMINATORY .10
(II) A
N INSURER OR INSURANCE PRODUCER SHALL NOT REQUIRE A
11
CUSTOMER TO PURCHASE, CONTINUE, OR RENEW AN INSURANCE POLICY IN12
EXCHANGE FOR A GIFT, ITEM, SERVICE, OR PRIZE RECEIVED OR WON13
PURSUANT TO THIS SUBSECTION (2.6).14
(2.7) E
XCEPT AS APPLIED TO AN INSURER OR INSURANCE
15
PRODUCER'S OFFER OF A VALUE-ADDED PRODUCT OR SERVICE, AN INSURER16
OR INSURANCE PRODUCER SHALL NOT :17
(a) O
FFER OR PROVIDE INSURANCE AS AN INDUCEMENT TO THE
18
PURCHASE OF ANOTHER POLICY ; OR19
(b) U
SE THE WORDS "FREE" OR "NO COST" OR WORDS OF SIMILAR
20
IMPORT IN AN ADVERTISEMENT.21
(6) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
22
REQUIRES:23
(a) "C
USTOMER" INCLUDES A POLICYHOLDER , POTENTIAL
24
POLICYHOLDER, CERTIFICATE HOLDER, POTENTIAL CERTIFICATE HOLDER,25
INSURED, POTENTIAL INSURED, OR APPLICANT.26
(b) "I
NSURANCE PRODUCER " HAS THE MEANING SET FORTH IN
27
058
-6- SECTION 10-2-103 (6).1
SECTION 2. Act subject to petition - effective date -2
applicability. (1) This act takes effect at 12:01 a.m. on the day following3
the expiration of the ninety-day period after final adjournment of the4
general assembly; except that, if a referendum petition is filed pursuant5
to section 1 (3) of article V of the state constitution against this act or an6
item, section, or part of this act within such period, then the act, item,7
section, or part will not take effect unless approved by the people at the8
general election to be held in November 2026 and, in such case, will take9
effect on the date of the official declaration of the vote thereon by the10
governor.11
(2) This act applies to conduct occurring on or after the applicable12
effective date of this act.13
058
-7-