CO| Colorado Regulation 5-1-28 establishes requirements for admitted homeowner and certain residential property insurers, as well as the Colorado FAIR Plan, to publicly disclose how wildfire mitigation actions and wildfire risk models or catastrophe models are used in underwriting and pricing, to provide or clearly disclose the availability of mitigation-based premium discounts, and to give applicants and policyholders standardized notices, explanations, and appeal rights related to wildfire risk scores, classifications, and mitigation discounts, with specified timelines and documentation standards; noncompliance is subject to standard Colorado insurance enforcement sanctions, and the regulation becomes effective October 1, 2026.
Key Points:
- Requires insurers and the FAIR Plan to maintain a written appeal process for wildfire risk scores, classifications, and discounts, including minimum timeframes, written acknowledgments and decisions, criteria for evidence, and rules for when premium changes can be applied, with violations enforceable through civil penalties and licensing actions.
- Applies to all admitted homeowners and defined residential property insurers in Colorado and the Colorado FAIR Plan (but not commercial farm/ranch or non‑admitted carriers) and requires website disclosures about mitigation discounts or a clear statement if such discounts are not offered.
- Mandates specific timing and content for notices and plain‑language explanations of wildfire risk scores, classifications, and mitigation discounts, as well as procedures and deadlines for updating scores when mitigation evidence is submitted.