The Colorado General Assembly enacted several new insurance laws during the 2025 Legislative Session. These laws concern risk model use in homeowner property insurance policies, requests for certified copies of insurance policies, and fair access to insurance requirement plans. Each of these new laws is summarized below.
HB25-1182
Risk Model Use in Property Insurance Policies. HB25-1182 addresses rising homeowner property insurance premiums associated with the risk of wildfires in Colorado. The new law requires property insurers that use wildlife risk models, catastrophe models, and scoring methods as part of the underwriting process to provide the state with information and data about those models and scoring methods as part of the insurer’s rate filings. HB25-1182 also requires insurers to incorporate property-specific and community-level mitigation into their models. In addition, insurers must offer lower premiums to policyholders who undertake property-specific mitigation actions or who provide evidence of community-level mitigation actions. Insurers must post information about premiums and discounts for mitigation measures on their websites. Insurers must also notify policyholders annually regarding price increases associated with wildfire risk, wildfire risk scores, and opportunities for policyholders to obtain mitigation discounts.
HB25-1182 takes effect on July 1, 2025, unless a referendum petition is filed by August 5, 2025, and is codified at Colo. Rev. Stat. § 10-4-124.
HB25-1322
Enforce Insurer Compliance Requests Insurance Policy. Under existing Colorado law, an insurance policyholder may request a certified copy of their insurance policy from a homeowners insurance carrier and the carrier must provide the requested policy. HB25-1322 clarifies that the request must be in writing and received by the carrier’s registered agent. Once the registered agent receives the request, the carrier has thirty (30) days to provide a certified copy of the policy to the policyholder. If a carrier fails to do so, the new law imposes a penalty in the amount of $50 per day on the carrier and allows a policyholder to recover attorney fees and costs from the carrier to enforce the requirement.
HB25-1322 takes effect on August 6, 2025, unless a referendum petition is filed by August 5, 2025, and is codified at Colo. Rev. Stat. §10-4-110.
HB25-1205
Implement Fair Access to Insurance Requirement Plans. In a prior legislative session, the General Assembly created what is known as the fair access to insurance requirements plan association or “FAIR plan association” which is a nonprofit, unincorporated entity. The legislature established the FAIR plan association to provide property insurance coverage, including commercial property insurance, when coverage is not available from companies who are part of the association. HB25-1205 amends the laws applicable to the FAIR plan association.
The new law clarifies that the FAIR plan association is not: (1) a department, unit, agency, political subdivision, or instrumentality of the state; or (2) an insurance company or a person engaged in the business of insurance. HB25-1205 also grants a member insurer, the association and its agents or employees, the board of directors of the association, and the commissioner of insurance or the commissioner’s representatives, immunity for any action taken by them in the performance of their powers and duties for the association. In addition, the new law specifies that the only causes of action and remedies available to a policyholder of a fair access to insurance requirements plan policy against the association are breach of contract and breach of the implied covenant of good faith and fair dealing. Further, if a court finds that a claim brought against a FAIR plan association is frivolous, it shall award costs and attorney fees to the association.
HB25-1205 takes effect immediately and is codified at Colo. Rev. Stat. §§ 10-4-1804 and 10-4-1810.5.
Our Team
If you have questions about the new insurance laws enacted by the Colorado General Assembly in 2025 and their potential effect on your business or property, please contact BHGR’s Insurance Group today.
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