A Bill for an Act
Page 1, Line 101Concerning increasing the availability of homeowner's
Page 1, Line 102insurance in the state.
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 2 enterprises in the division of insurance (division) in the department of regulatory agencies.
The bill creates the strengthen Colorado homes enterprise (strengthen homes enterprise), which is a state-owned business that imposes and collects a fee from insurance companies (insurers), including the FAIR plan association, that offer homeowner's insurance policies in Colorado, which fee is equal to 1.5% of the dollar amount of the premiums that the insurer collects from homeowners for issuing homeowner's insurance policies (insurer fee).
With the insurer fee revenue, the strengthen homes enterprise board administers a grant program (grant program) to strengthen homes against the risk of future damage claims caused by high winds, wildfire, hail, and other extreme weather events (extreme weather events) by allowing a homeowner to use grant money to upgrade their roof system with certain resilient roof materials. By paying the insurer fee to support the grant program to retrofit homes with resilient roofs, insurers reduce their overall risk in the market due to hail and other extreme weather events.
The bill also creates the wildfire catastrophe reinsurance enterprise (reinsurance enterprise), which is a state-owned business implementing and administering the wildfire catastrophe reinsurance program (reinsurance program). The reinsurance program makes reinsurance payments to insurers that offer homeowner's insurance on properties located in the state to partially mitigate losses in the event of a state or federally declared wildfire-related disaster (wildfire-related disaster). The purpose of the reinsurance program is to stabilize the homeowner's insurance market in the state and to attract and retain homeowner's insurers. In exchange for access to the reinsurance program, the reinsurance program requires insurers to sell homeowner's insurance in areas of the state that are at high risk for wildfires.
To pay for the reinsurance program, the reinsurance enterprise:
- Issues revenue bonds secured by the reinsurance enterprise;
- Issues a catastrophe bond to a person that purchases the bond but pays the principal to cover costs of a wildfire-related disaster if it occurs;
- May impose and collect an insurer fee on insurers to cover a shortfall if a wildfire-related disaster does not occur during the bond term and the reinsurance enterprise has insufficient money to redeem the bonds at maturity; and
- Invests the revenue from the bonds and insurer fees.
In addition, the bill sets the loss ratio for homeowner's insurance by presuming that the rates charged to purchasers are excessive if the insurer's loss ratio is less than 75% over a 3-year period and, if rates are in excess of the loss ratio, requires insurers to submit rates that are at least 5% less than the previous year.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, add parts 20 and 21 to article 4 of title 10 as follows:
Page 3, Line 1PART 20
STRENGTHEN COLORADO HOMES ENTERPRISE
Page 3, Line 210-4-2001. Legislative declaration. (1) The general assembly:
Page 3, Line 3(a) Finds and determines that:
Page 3, Line 4(I) Increased greenhouse gas emissions and rapidly rising
Page 3, Line 5temperatures resulting from human activity are changing the
Page 3, Line 6climate in ways that threaten Colorado's economy, the health of its residents, and its natural landscape;
Page 3, Line 7(II) These temperature increases have an impact on
Page 3, Line 8Colorado's environment, with drought, heat waves, windstorms,
Page 3, Line 9wildfires, hail, and other extreme weather events increasing in recent years;
Page 3, Line 10(III) The economic impacts of these increasingly frequent and severe weather events are significant;
Page 3, Line 11(IV) Colorado property owners in the state are faced
Page 3, Line 12with challenges in finding insurance coverage and increasing
Page 3, Line 13insurance premiums, undermining the ability to purchase, sell, and own a home;
Page 3, Line 14(V) There is a need in the state to encourage investments
Page 3, Line 15in home hardening, which means making homes and communities
Page 3, Line 16more resilient to extreme weather events such as hail and wildfires;
Page 3, Line 17(VI) Making investments in home hardening will decrease
Page 3, Line 18losses that would otherwise predominantly be paid by insurers
Page 3, Line 19and will allow and encourage insurer participation and
Page 4, Line 1competition in the insurance market to offer coverage
Page 4, Line 2throughout the state to all Coloradans, resulting in long-term savings for homeowners and insurers; and
Page 4, Line 3(VII) Accordingly, it is appropriate to finance a home
Page 4, Line 4hardening program through a fee imposed on homeowner's insurance products; and
Page 4, Line 5(b) Declares that:
Page 4, Line 6(I) The strengthen Colorado homes enterprise provides
Page 4, Line 7valuable services, benefits, and useful business services to
Page 4, Line 8homeowners when, in exchange for payment of the fee described
Page 4, Line 9in section 10-4-2003, the enterprise uses the fee revenue to
Page 4, Line 10provide grants to homeowners to fortify the roof of and
Page 4, Line 11otherwise mitigate the risk of losses to an insured property
Page 4, Line 12resulting from natural disasters and extreme weather,
Page 4, Line 13including hail, thus reducing risk and losses to homeowners and insurers in the state;
Page 4, Line 14(II) By providing the benefits and services specified in this
Page 4, Line 15part 20, the strengthen Colorado homes enterprise engages in
Page 4, Line 16activities conducted in the pursuit of a benefit, gain, or livelihood and therefore operates as a business;
Page 4, Line 17(III) Consistent with the determination of the Colorado
Page 4, Line 18supreme court in Nicholl v. E-470 Public Highway Authority, 896
Page 4, Line 19P.2d 859 (Colo. 1995), that the power to impose taxes is
Page 4, Line 20inconsistent with enterprise status under section 20 of article
Page 4, Line 21X of the state constitution, the general assembly concludes
Page 4, Line 22that the revenue collected by the enterprise is generated by
Page 4, Line 23fees, not taxes, because the money credited to the enterprise is:
Page 5, Line 1(A) For the specific purpose of allowing the enterprise to
Page 5, Line 2defray the costs of providing the services described in this part 20;
Page 5, Line 3(B) Collected at rates that are reasonably calculated
Page 5, Line 4based on the costs of the services provided by the enterprise; and
Page 5, Line 5(C) Not state fiscal year spending, as defined in section
Page 5, Line 624-77-102 (17), or state revenues, as defined in section 24-77-103.6
Page 5, Line 7(6)(c), and does not count against either the state fiscal year
Page 5, Line 8spending limit imposed by section 20 of article X of the state
Page 5, Line 9constitution or the excess state revenues cap, as defined in
Page 5, Line 10section 24-77-103.6 (6)(b), so long as the enterprise qualifies as
Page 5, Line 11an enterprise for purposes of section 20 of article X of the state constitution; and
Page 5, Line 12(IV) No other enterprise created simultaneously or
Page 5, Line 13within the preceding five years serves primarily the same purpose
Page 5, Line 14as the enterprise, and the enterprise will generate revenue from
Page 5, Line 15fees and surcharges of less than one hundred million dollars
Page 5, Line 16total in its first five fiscal years. Accordingly, the creation of
Page 5, Line 17the enterprise does not require voter approval pursuant to section 24-77-108.
Page 5, Line 1810-4-2002. Definitions.As used in this part 20, unless the context otherwise requires:
Page 5, Line 19(1) "Board" or "enterprise board" means the governing board of the strengthen Colorado homes enterprise.
Page 5, Line 20(2) "FAIR plan association" means the fair access to
Page 5, Line 21insurance requirements plan association created in section 10-4-1804.
Page 6, Line 1(3) "Fee" means the fee that the enterprise imposes and collects pursuant to section 10-4-2003 (4).
Page 6, Line 2(4) "Fund" means the strengthen Colorado homes enterprise fund created in section 10-4-2003 (5).
Page 6, Line 3(5) "Grant program" means the strengthen Colorado homes enterprise grant program created in section 10-4-2004.
Page 6, Line 4(6) "Resilient roof system" means the integrated assembly
Page 6, Line 5of components that protect a structure from environmental
Page 6, Line 6elements, including the roof covering, underlayment, decking,
Page 6, Line 7flashing, vents, soffits, fascia, gutters, downspouts, and
Page 6, Line 8structural supports. "Resilient roof system" includes both
Page 6, Line 9materials and construction techniques that are designed to
Page 6, Line 10exceed recognized performance standards for extreme weather events.
Page 6, Line 11(7) "Strengthen Colorado homes enterprise" or
Page 6, Line 12"enterprise" means the strengthen Colorado homes enterprise created in section 10-4-2003 (1).
Page 6, Line 1310-4-2003. Strengthen Colorado homes enterprise - creation
Page 6, Line 14- purpose - enterprise board - powers and duties - fee - fund - gifts,
Page 6, Line 15grants, or donations - rules - reporting - repeal. (1) Enterprise -
Page 6, Line 16creation - purpose. (a) (I) The strengthen Colorado homes
Page 6, Line 17enterprise is created in the division. The enterprise is a type 1
Page 6, Line 18entity, as defined in section 24-1-105, and exercises its powers
Page 6, Line 19and performs its duties and functions under the division. The
Page 6, Line 20enterprise is and operates as a government-owned business
Page 6, Line 21within the division.
Page 7, Line 1(II) The business purpose of the enterprise is to impose and
Page 7, Line 2collect a fee charged to certain homeowner's insurance
Page 7, Line 3policyholders and to use the revenue from the fee to provide the following business services to policyholders paying the fee:
Page 7, Line 4(A) Awarding grants to insured homeowners pursuant to
Page 7, Line 5section 10-4-2004 to defray the cost of retrofitting residential
Page 7, Line 6property to resist loss by purchasing and installing resilient roof systems using qualified professionals;
Page 7, Line 7(B) Through the installation of resilient roof systems on
Page 7, Line 8homes in the state, reducing the frequency of hail damage claims;
Page 7, Line 9(C) Improving insurance market stability throughout the state; and
Page 7, Line 10(D) Reducing policyholder and insurer losses by increasing the number of homes with resilient roof systems.
Page 7, Line 11(b) The enterprise constitutes an enterprise for purposes
Page 7, Line 12of section 20 of article X of the state constitution so long as it
Page 7, Line 13retains the authority to issue revenue bonds and receives less
Page 7, Line 14than ten percent of its total revenues in grants from all
Page 7, Line 15Colorado state and local governments combined. So long as it
Page 7, Line 16constitutes an enterprise pursuant to this subsection (1), the
Page 7, Line 17enterprise is not subject to section 20 of article X of the state constitution.
Page 7, Line 18(2) Enterprise board. (a) The enterprise is governed by the enterprise board.
Page 7, Line 19(b) The board consists of the following five voting
Page 7, Line 20members:
(I) The commissioner or the commissioner's designee; and
Page 8, Line 1(II) Four members appointed by the governor to serve three-year terms, including:
Page 8, Line 2(A) Two members who represent insurance companies that offer in homeowner's insurance;
Page 8, Line 3(B) One member who has expertise or experience in home hardening and other mitigation activities; and
Page 8, Line 4(C) One member who represents consumers.
Page 8, Line 5(c) Of the first members appointed to the board pursuant
Page 8, Line 6to subsection (2)(b)(II) of this section, two members shall serve an initial term of two years.
Page 8, Line 7(d) (I) The governor shall make the initial appointments to the board no later than January 1, 2026.
Page 8, Line 8(II) This subsection (2)(d) is repealed, effective July 1, 2027.
Page 8, Line 9(e) The commissioner or the commissioner's designee is the chair of the board.
Page 8, Line 10(f) Members of the board serve without compensation but
Page 8, Line 11must be reimbursed from money in the fund for actual and
Page 8, Line 12necessary expenses incurred in the performance of their duties pursuant to this part 20.
Page 8, Line 13(g) The board shall conduct the enterprise's business as
Page 8, Line 14required by state law, including in compliance with the open
Page 8, Line 15meeting requirements of part 4 of article 6 of title 24 and the open record requirements of article 72 of title 24.
Page 8, Line 16(3) Powers and duties. (a) The enterprise's primary powers and duties are to:
Page 8, Line 17(I) Impose and collect the fee pursuant to subsection (4) of this section;
Page 9, Line 1(II) Award grants from money in the fund in accordance
Page 9, Line 2with the grant program requirements specified in section 10-4-2004;
Page 9, Line 3(III) Issue revenue bonds for the expenses of the enterprise, secured by revenue of the enterprise;
Page 9, Line 4(IV) Invest the revenue from the issuance and sale of
Page 9, Line 5revenue bonds and the imposition and collection of the fee. In investing the revenue, the enterprise may:
Page 9, Line 6(A) Invest the revenue without regard to the limitations set forth in section 24-36-103, 24-75-601.1, or 24-75-603; and
Page 9, Line 7(B) Enter into contracts with private professional fund
Page 9, Line 8managers to provide expertise, technical support, and advice on
Page 9, Line 9investment market conditions. In seeking bids for such
Page 9, Line 10contracts, the enterprise shall employ standard public bidding
Page 9, Line 11practices, including the use of requests for information,
Page 9, Line 12requests for proposals, or any other standard vendor selection
Page 9, Line 13practices determined by the enterprise to be best suited to selecting an appropriate private professional fund manager.
Page 9, Line 14(V) Pay the administrative expenses of the enterprise;
Page 9, Line 15(VI) Adopt, amend, or repeal rules or policies for the
Page 9, Line 16regulation of the enterprise's affairs and the conduct of the enterprise's business consistent with this part 20;
Page 9, Line 17(VII) Engage the services of public or private entities,
Page 9, Line 18contractors, or consultants for professional and technical
Page 9, Line 19assistance and to provide advice and other services related to
Page 9, Line 20conducting the affairs of the enterprise, without regard to the
Page 10, Line 1"Procurement Code", articles 101 to 112 of title 24. In conducting its affairs, the enterprise shall:
Page 10, Line 2(A) Engage the attorney general's office for legal services; and
Page 10, Line 3(B) Enter into a contract or contracts with the division
Page 10, Line 4at fair market rates for office space and administrative staff for the enterprise; and
Page 10, Line 5(VIII) Prepare and submit an annual financial report
Page 10, Line 6pursuant to subsection (7) of this section concerning the
Page 10, Line 7administration of the enterprise and the grant program and post the report on the enterprise's public-facing website.
Page 10, Line 8(b) The enterprise may seek, accept, and expend grants or
Page 10, Line 9other money from the federal government and gifts, grants, or
Page 10, Line 10donations from other public and private sources to support and
Page 10, Line 11enhance enterprise activities; except that the enterprise shall
Page 10, Line 12not accept grants from the state or from local governments
Page 10, Line 13unless the combined total of all grants from such sources is under ten percent of the enterprise's annual revenue.
Page 10, Line 14(4) Fee - rules. (a) Beginning in the 2026 calendar year on
Page 10, Line 15or before a date determined by the enterprise, and annually
Page 10, Line 16each calendar year thereafter on or before the same date, the
Page 10, Line 17enterprise shall impose a fee pursuant to subsection (4)(c) of this
Page 10, Line 18section on each policyholder of a homeowner's insurance policy
Page 10, Line 19issued in the admitted market covering property located in or
Page 10, Line 20risks in the state on a per-policy basis and on each policyholder
Page 10, Line 21of the FAIR plan association on a per-policy basis; except that
Page 10, Line 22the enterprise shall not impose a fee on policyholders that have
Page 11, Line 1a resilient roof system that meets the Insurance Institute for
Page 11, Line 2Business and Home Safety standards or similar standards, as determined by the board by rule.
Page 11, Line 3(b) The enterprise shall credit the fees collected to the
Page 11, Line 4fund. A fee collected by the enterprise is excluded from the state's fiscal year spending.
Page 11, Line 5(c) (I) The amount of the fee is an amount equal to
Page 11, Line 6one-half percent on the percentage of total premiums collected
Page 11, Line 7by each insurer in the admitted market and by the FAIR plan
Page 11, Line 8association in the immediately preceding calendar year on
Page 11, Line 9homeowner's insurance policies issued in the state on any home
Page 11, Line 10that does not have a resilient roof system that meets the
Page 11, Line 11standards of the Insurance Institute for Business and Home Safety or similar standards, as determined by the board by rule.
Page 11, Line 12(II) The enterprise may lower the fee or cease collecting
Page 11, Line 13the fee in any calendar year to ensure that the total amount of
Page 11, Line 14fee revenue does not exceed one hundred million dollars over the first five fiscal years of the enterprise's existence.
Page 11, Line 15(III) The FAIR plan association and each insurer shall
Page 11, Line 16collect the fee from their respective policyholders, pay the fee
Page 11, Line 17to the enterprise, and list the fee as an itemized charge on their respective insurance policy billing statements.
Page 11, Line 18(IV) The fee is not a premium for any purpose, including the
Page 11, Line 19computation of the gross premium tax pursuant to section 10-3-209 or an insurance producer's commission.
Page 11, Line 20(d) The enterprise may annually request from insurers
Page 11, Line 21and the FAIR plan association information about policies and
Page 12, Line 1contracts as necessary to implement and enforce this part 20
Page 12, Line 2and may request that the division impose, after a public hearing,
Page 12, Line 3a civil fine or penalty of not more than one hundred twenty
Page 12, Line 4percent of the fee due to the enterprise for a violation of this part 20. The division shall credit the fine to the fund.
Page 12, Line 5(e) The enterprise shall adopt any rules necessary for the imposition and collection of the fee.
Page 12, Line 6(5) Fund. (a) The strengthen Colorado homes enterprise fund is created in the state treasury.
Page 12, Line 7(b) The fund consists of:
Page 12, Line 8(I) Fees imposed and collected pursuant to subsection (4) of this section;
Page 12, Line 9(II) Grants or other money received from the federal
Page 12, Line 10government or gifts, grants, and donations received from public or private sources to support and enhance enterprise activities;
Page 12, Line 11(III) Fines for failure to collect and forward the enterprise fee imposed pursuant to subsection(4)of this section;
Page 12, Line 12(IV) Any money from bonds issued pursuant to subsection (3)(a)(III) of this section; and
Page 12, Line 13(V) Any money that the general assembly may appropriate or transfer to the fund.
Page 12, Line 14(c) Money in the fund is continuously appropriated to the
Page 12, Line 15enterprise for the purposes set forth in this part 20 and to pay
Page 12, Line 16the enterprise's reasonable and necessary administrative and operating expenses.
Page 12, Line 17(d) The state treasurer shall credit all interest and
Page 12, Line 18income derived from the deposit and investment of money in the fund to the fund.
Page 13, Line 1(6) Rules.The enterprise board shall adopt rules that are
Page 13, Line 2reasonable and necessary for administration and implementation of the enterprise and the grant program.
Page 13, Line 3(7) Reporting. (a) Notwithstanding section 24-1-136
Page 13, Line 4(11)(a)(I), beginning July 1, 2027, and each July 1 thereafter, the
Page 13, Line 5enterprise shall submit a report to the committees of reference
Page 13, Line 6of the general assembly to which the department is assigned
Page 13, Line 7pursuant to section 2-7-203 concerning the administration and implementation of the enterprise and the grant program.
Page 13, Line 8(b) The annual report must include:
Page 13, Line 9(I) The amount of fees collected by insurers and the FAIR plan association, and the unobligated balance of the fund;
Page 13, Line 10(II) The number of grant applications and the amount of grants awarded;
Page 13, Line 11(III) The areas of the state where grant recipients reside; and
Page 13, Line 12(IV) Any other information relevant to the success of the enterprise and the grant program.
Page 13, Line 1310-4-2004. Strengthen Colorado homes enterprise grant
Page 13, Line 14program - application - eligibility criteria - award of grants - rules.
Page 13, Line 15(1) There is created in the enterprise the strengthen Colorado
Page 13, Line 16homes enterprise grant program to provide grants to Colorado
Page 13, Line 17homeowners to retrofit residential property to resist loss due
Page 13, Line 18to common perils, including hail, windstorms, wildfire, and other extreme weather events.
Page 13, Line 19(2) (a) Subject to available fee revenue, the enterprise
Page 14, Line 1board shall award grants, in accordance with this section, from
Page 14, Line 2the fund. The board may establish procedures and criteria for
Page 14, Line 3the award of grants if there is insufficient money in the fund to award grants to all eligible homeowner applicants.
Page 14, Line 4(b) The board may contract with a third-party vendor to administer the grant program.
Page 14, Line 5(3) In addition to any grant program criteria established by the board by rule, a homeowner awarded a grant shall:
Page 14, Line 6(a) Have an insurable residential property located in
Page 14, Line 7Colorado that is covered by a homeowner's insurance policy or a policy issued by the FAIR plan association;
Page 14, Line 8(b) Obtain all permits required by law for construction;
(c) Comply with all applicable building codes;
Page 14, Line 9(d) Arrange and pay for inspections required by law and the terms of the grant program;
Page 14, Line 10(e) Construct a roof that meets the standards of the
Page 14, Line 11Insurance Institute for Business and Home Safety or similar standards, as determined by the board by rule; and
Page 14, Line 12(f) Select a contractor licensed in the state who is a
Page 14, Line 13member of the Colorado Roofing Association or an equivalent
Page 14, Line 14qualifying body that maintains standards for licensing, insurance, and professional conduct.
Page 14, Line 15(4) The board may perform audits to verify:
Page 14, Line 16(a) The accuracy of the information included in an application; and
Page 14, Line 17(b) That the applicant meets all eligibility criteria.
Page 14, Line 18(5) A homeowner shall not use money that is awarded as
Page 15, Line 1a grant to pay for general roof maintenance or repair, but may
Page 15, Line 2use grant money in conjunction with repairs or reconstruction
Page 15, Line 3necessitated by damage from wind, hail, wildfire, or other
Page 15, Line 4extreme weather events or for proactive retrofitting necessitated by or designed to prevent such damage.
Page 15, Line 5(6) (a) The enterprise board shall adopt rules for the
Page 15, Line 6administration and implementation of the grant program,
Page 15, Line 7including the standards for a resilient roof system, the criteria
Page 15, Line 8used to determine whether an applicant is eligible for a grant
Page 15, Line 9under this section, and the amount and timing of the grant
Page 15, Line 10award. In adopting eligibility requirements for the grants, the
Page 15, Line 11board may take into consideration applicant income, whether an
Page 15, Line 12applicant lives in a location that, based on historical data, has
Page 15, Line 13a higher susceptibility to extreme weather events, the number
Page 15, Line 14of applicants, and any other criteria the board determines is
Page 15, Line 15appropriate to meet the purpose of the enterprise and the money available for grants.
Page 15, Line 16(b) In adopting resilient roof system standards, the board
Page 15, Line 17may prioritize the use of materials proven to offer superior
Page 15, Line 18protections against extreme weather events and may incentivize reduced environmental impacts.
Page 15, Line 19(c) The board may also adopt rules to encourage
Page 15, Line 20contractors to complete specialized training in the installation of impact-resistant and fire-resistant roofing systems.
Page 15, Line 21(7) Nothing in this section creates:
Page 15, Line 22(a) An entitlement for a homeowner to receive grant
Page 15, Line 23money to inspect or retrofit residential property; or
Page 16, Line 1(b) An obligation for the state to appropriate money to inspect or retrofit residential property.
Page 16, Line 210-4-2005. Severability.If any provision of this part 20 or
Page 16, Line 3the application thereof to any person or circumstance is held
Page 16, Line 4invalid, such invalidity does not affect other provisions or
Page 16, Line 5applications of this part 20 that can be given effect without the
Page 16, Line 6invalid provision or application, and to this end the provisions of this part 20 are declared to be severable.
Page 16, Line 710-4-2006. Repeal of part - subject to review.This part 20 is
Page 16, Line 8repealed, effective September 1, 2035. Before the repeal, the
Page 16, Line 9enterprise and the grant program are scheduled for review in accordance with section 24-34-104.
Page 16, Line 10PART 21
WILDFIRE CATASTROPHE REINSURANCE ENTERPRISE
Page 16, Line 1110-4-2101. Legislative declaration. (1) The general assembly:
Page 16, Line 12(a) Finds and determines that:
Page 16, Line 13(I) Increased greenhouse gas emissions and rapidly rising
Page 16, Line 14temperatures are changing the climate in ways that threaten
Page 16, Line 15Colorado's economy, the health of its residents, and its natural landscape;
Page 16, Line 16(II) The changing climate is already impacting Colorado's
Page 16, Line 17environment, with drought, heat waves, high windstorms,
Page 16, Line 18wildfires, and other extreme weather events increasing in size and severity in recent years;
Page 16, Line 19(III) The economic impacts of these extreme weather
Page 16, Line 20events on Colorado and its residents are significant, especially the impacts from wildfires;
Page 17, Line 1(IV) Colorado property owners are faced with challenges
Page 17, Line 2in finding insurance coverage and in paying increasing insurance
Page 17, Line 3premiums, undermining the ability of Coloradans to purchase, sell, and own a home;
Page 17, Line 4(V) Establishing a reinsurance program to cover certain
Page 17, Line 5homeowner losses caused by wildfires will decrease losses to
Page 17, Line 6insurers, provide more predictability for insurers, and
Page 17, Line 7encourage insurer competition and participation in the homeowner's insurance market;
Page 17, Line 8(VI) Robust participation by insurers in the homeowner's
Page 17, Line 9insurance market is necessary to ensure affordable
Page 17, Line 10homeowner's insurance coverage throughout the state to all
Page 17, Line 11Coloradans, including those in areas of the state at high risk for wildfires; and
Page 17, Line 12(VII) Accordingly, it is appropriate to create a
Page 17, Line 13reinsurance program to mitigate catastrophic losses to insurers
Page 17, Line 14from state or federally declared wildfire-related disasters
Page 17, Line 15and, in exchange for that service, to provide money for the
Page 17, Line 16reinsurance program by issuing revenue bonds and imposing a fee on homeowner's insurance policyholders; and
Page 17, Line 17(b) Declares that:
Page 17, Line 18(I) The insurer fee is reasonably related to the overall
Page 17, Line 19cost of the service provided in this part 21 and is imposed on
Page 17, Line 20insurers in the state that will benefit from or use the service provided by the wildfire catastrophe reinsurance enterprise;
Page 17, Line 21(II) By providing the benefits and services specified in this
Page 18, Line 1part 21, the enterprise engages in activities conducted in the
Page 18, Line 2pursuit of a benefit, gain, or livelihood and therefore operates as a business;
Page 18, Line 3(III) Consistent with the determination of the Colorado
Page 18, Line 4supreme court in Nicholl v. E-470 Public Highway Authority, 896
Page 18, Line 5P.2d 859 (Colo. 1995), that the power to impose taxes is
Page 18, Line 6inconsistent with enterprise status under section 20 of article
Page 18, Line 7X of the state constitution, the general assembly concludes
Page 18, Line 8that the revenue collected by the enterprise is generated by fees, not taxes, because the money credited to the enterprise is:
Page 18, Line 9(A) For the specific purpose of allowing the enterprise to
Page 18, Line 10defray the costs of providing the services described in this part 21;
Page 18, Line 11(B) Collected at rates that are reasonably calculated
Page 18, Line 12based on the costs of the services provided by the enterprise; and
Page 18, Line 13(C) Not state fiscal year spending, as defined in section
Page 18, Line 1424-77-102 (17), or state revenues, as defined in section 24-77-103.6
Page 18, Line 15(6)(c), and does not count against either the state fiscal year
Page 18, Line 16spending limit imposed by section 20 of article X of the state
Page 18, Line 17constitution or the excess state revenues cap, as defined in
Page 18, Line 18section 24-77-103.6 (6)(b), so long as the enterprise qualifies as
Page 18, Line 19an enterprise for purposes of section 20 of article X of the state constitution; and
Page 18, Line 20(IV) No other enterprise created simultaneously or
Page 18, Line 21within the preceding five years serves primarily the same purpose
Page 18, Line 22as the enterprise, and the enterprise will generate revenue from
Page 19, Line 1fees and surcharges of less than one hundred million dollars
Page 19, Line 2total in its first five fiscal years. Accordingly, the creation of
Page 19, Line 3the enterprise does not require voter approval pursuant to section 24-77-108.
Page 19, Line 410-4-2102. Definitions.As used in this part 21, unless the context otherwise requires:
Page 19, Line 6(1) "Eligible insurer" means an insurer in the admitted market that:
Page 19, Line 7(a) Offers homeowner's insurance on property located in the state;
Page 19, Line 8(b) Incurs claims costs as a result of a state or federally declared wildfire-related disaster; and
Page 19, Line 9(c) Writes policies for a proportional share of risk in
Page 19, Line 10areas at highest risk of wildfires in the state, as determined by the commissioner.
Page 19, Line 11(2) "Enterprise" means the wildfire catastrophe reinsurance enterprise created in section 10-4-2103 (1).
Page 19, Line 12(3) "Enterprise board" or "board" means the governing board of the enterprise created in section 10-4-2103 (2).
Page 19, Line 13(4) "Fund" means the wildfire catastrophe reinsurance enterprise fund created in section 10-4-2103 (6).
Page 19, Line 14(5) "Insurer fee" means a fee imposed by the enterprise pursuant to section 10-4-2103 (4).
Page 19, Line 15(6) "Reinsurance payment" means a payment to an eligible insurer through the reinsurance program.
Page 19, Line 16(7) "Reinsurance program" means the wildfire catastrophe reinsurance program created in section 10-4-2104.
Page 20, Line 1(8) "Revenue bond" means a bond, note, or other security
Page 20, Line 2evidencing an obligation and issued by the enterprise pursuant to section 10-4-2103.
Page 20, Line 310-4-2103. Wildfire catastrophe reinsurance enterprise -
Page 20, Line 4creation - purpose - board - powers and duties - insurer fee - advisory
Page 20, Line 5committee - fund - gifts, grants, or donations - rules - reporting -
Page 20, Line 6repeal. (1) Enterprise - creation - purpose. (a) The wildfire
Page 20, Line 7catastrophe reinsurance enterprise is created in the division.
Page 20, Line 8The enterprise is a type 1 entity, as defined in section 24-1-105,
Page 20, Line 9and exercises its powers and performs its duties and functions
Page 20, Line 10under the division. The enterprise is and operates as a government-owned business within the division.
Page 20, Line 11(b) The business purpose of the enterprise is to:
Page 20, Line 12(I) Provide stability in the homeowner's insurance market
Page 20, Line 13by implementing and administering the reinsurance program for
Page 20, Line 14the benefit of insurers to cover a portion of insurer losses
Page 20, Line 15resulting from a state or federally declared wildfire-related disaster;
Page 20, Line 16(II) Provide money for the reinsurance program by
Page 20, Line 17imposing and collecting an insurer fee on insurers offering
Page 20, Line 18homeowner's insurance on property located in the state, selling
Page 20, Line 19revenue bonds, and investing the revenue from the fees and bonds to provide money for the reinsurance;
Page 20, Line 20(III) Incentivize the offer of homeowner's insurance
Page 20, Line 21coverage for property throughout the state, which is expected
Page 20, Line 22to increase competition among insurers and make insurance more
Page 21, Line 1affordable to purchase, resulting in a reduction in the
Page 21, Line 2concentration of risk to insurers in areas of the state at highest risk of insurer losses due to wildfires; and
Page 21, Line 3(IV) Enhance insurers' customer retention by addressing
Page 21, Line 4challenges to the affordability and availability of housing in
Page 21, Line 5the state and reduce the overall risk for insurers offering homeowner's insurance.
Page 21, Line 6(c) The enterprise constitutes an enterprise for purposes
Page 21, Line 7of section 20 of article X of the state constitution so long as it
Page 21, Line 8retains the authority to issue revenue bonds and receives less
Page 21, Line 9than ten percent of its total revenues in grants from all
Page 21, Line 10Colorado state and local governments combined. So long as it
Page 21, Line 11constitutes an enterprise pursuant to this subsection (1), the
Page 21, Line 12enterprise is not subject to section 20 of article X of the state constitution.
Page 21, Line 13(2) Enterprise board. (a) The enterprise is governed by the enterprise board.
Page 21, Line 14(b) The board consists of the following five voting members:
Page 21, Line 15(I) The commissioner or the commissioner's designee; and
Page 21, Line 16(II) Four members appointed by the governor to serve three-year terms, including:
Page 21, Line 17(A) One member who represents an insurance company and
Page 21, Line 18has expertise in underwriting and pricing homeowner's insurance;
Page 21, Line 19(B) One member who represents an insurance company and
Page 21, Line 20has expertise in financing and investments;
(C) One member who is a consumer; and
Page 22, Line 1(D) One member who has expertise in reinsurance.
Page 22, Line 2(c) Of the first members appointed to the board pursuant
Page 22, Line 3to subsection (2)(b)(II) of this section, two members shall serve an initial term of two years.
Page 22, Line 4(d) The commissioner or the commissioner's designee is the chair of the board.
Page 22, Line 5(e) (I) The governor shall make initial appointments to the board no later than January 1, 2026.
Page 22, Line 6(II) This subsection (2)(e) is repealed, effective July 1, 2027.
Page 22, Line 7(f) Members of the board serve without compensation but
Page 22, Line 8must be reimbursed from money in the fund for actual and
Page 22, Line 9necessary expenses incurred in the performance of their duties pursuant to this part 21.
Page 22, Line 10(g) The board shall conduct the enterprise's business as
Page 22, Line 11required by state law, including in compliance with the open
Page 22, Line 12meeting requirements of part 4 of article 6 of title 24 and the open record requirements of article 72 of title 24.
Page 22, Line 13(3) Powers and duties. (a) As determined by the board, the enterprise shall engage in activities that:
Page 22, Line 14(I) Seek to address the affordability challenges faced by Coloradans in purchasing homeowner's insurance;
Page 22, Line 15(II) Enhance competition in the homeowner's insurance market throughout the state;
Page 22, Line 16(III) Incentivize insurers to offer homeowner's insurance
Page 22, Line 17coverage in areas of the state at high risk for damage or loss
Page 22, Line 18due to wildfires;
Page 23, Line 1(IV) Ensure insurers are offering coverage throughout the state; and
Page 23, Line 2(V) Ensure insurers are properly administering claims
Page 23, Line 3associated with state or federally declared wildfire-related
Page 23, Line 4disasters for which the enterprise makes reinsurance payments pursuant to section 10-4-2104.
Page 23, Line 5(b) In furtherance of its business purpose, the enterprise's primary powers and duties are to:
Page 23, Line 7(I) Issue revenue bonds for the expenses of the enterprise, secured by revenue of the enterprise;
Page 23, Line 8(II) Impose and collect the insurer fee pursuant to
Page 23, Line 9subsection (4) of this section and to require reporting from insurers;
Page 23, Line 10(III) Invest the revenue from the issuance of revenue
Page 23, Line 11bonds and the insurer fee. In investing the revenue, the enterprise may:
Page 23, Line 12(A) Invest the revenue without regard to the limitations set forth in section 24-36-103, 24-75-601.1, or 24-75-603; and
Page 23, Line 13(B) Enter into contracts with private professional fund
Page 23, Line 14managers to provide expertise, technical support, and advice on
Page 23, Line 15investment market conditions. In seeking bids for such
Page 23, Line 16contracts, the enterprise shall employ standard public bidding
Page 23, Line 17practices, including the use of requests for information,
Page 23, Line 18requests for proposals, or any other standard vendor selection
Page 23, Line 19practices determined by the enterprise to be best suited to
Page 23, Line 20selecting an appropriate private professional fund manager.
(IV) Purchase reinsurance from the private market;
Page 24, Line 1(V) Make reinsurance payments to eligible insurers in accordance with section 10-4-2104;
Page 24, Line 2(VI) Pay the administrative expenses of the enterprise;
Page 24, Line 3(VII) Adopt, amend, or repeal rules or policies for the
Page 24, Line 4regulation of the enterprise's affairs and the conduct of the enterprise's business consistent with this part 21;
Page 24, Line 5(VIII) Engage the services of public or private entities,
Page 24, Line 6contractors, or consultants for professional and technical
Page 24, Line 7assistance and to provide advice and other services related to
Page 24, Line 8conducting the affairs of the enterprise, without regard to the
Page 24, Line 9"Procurement Code", articles 101 to 112 of title 24. In conducting its affairs, the enterprise shall:
Page 24, Line 10(A) Engage the attorney general's office for legal services; and
Page 24, Line 11(B) Enter into a contract or contracts with the division
Page 24, Line 12at fair market rates for office space and administrative staff for the enterprise; and
Page 24, Line 13(IX) Prepare and submit an annual financial report
Page 24, Line 14pursuant to subsection (8) of this section concerning the
Page 24, Line 15administration of the enterprise and the reinsurance program and post the report on the enterprise's public-facing website.
Page 24, Line 16(c) The enterprise may seek, accept, and expend grants or
Page 24, Line 17other money from the federal government and gifts, grants, or
Page 24, Line 18donations from other public and private sources to support and
Page 24, Line 19enhance enterprise activities; except that the enterprise shall
Page 24, Line 20not accept grants from the state or from local governments
Page 25, Line 1unless the combined total of all grants from such sources is under ten percent of the enterprise's annual revenue.
Page 25, Line 2(4) Fee - rules. (a) Beginning in the 2026 calendar year on
Page 25, Line 3or before a date determined by the enterprise, and annually
Page 25, Line 4each calendar year thereafter on or before the same date, the
Page 25, Line 5enterprise shall impose a fee pursuant to subsection (4)(b) of this
Page 25, Line 6section on a per-policy basis on each policyholder of a
Page 25, Line 7homeowner's insurance policy issued in the admitted market
Page 25, Line 8covering property located in or risks in the state; except that
Page 25, Line 9the enterprise shall not impose a fee on policyholders that have
Page 25, Line 10mitigated the covered property to meet the Insurance Institute
Page 25, Line 11for Business and Home Safety wildfire mitigation standards or similar standards, as determined by the board by rule.
Page 25, Line 12(b) The amount of the fee is an amount equal to one-half
Page 25, Line 13percent on the percentage of total premiums collected by each
Page 25, Line 14insurer in the admitted market in the immediately preceding
Page 25, Line 15calendar year on homeowner's insurance policies issued in the state.
Page 25, Line 16(c) Each insurer shall collect the fee from its
Page 25, Line 17policyholders, pay the fee to the enterprise, and list the fee as an itemized charge on its insurance policy billing statements.
Page 25, Line 18(d) The fee is not a premium for any purpose, including the
Page 25, Line 19computation of the gross premium tax pursuant to section 10-3-209 or an insurance producer's commission.
Page 25, Line 20(e) The enterprise shall adopt any rules necessary for the imposition and collection of the fee.
Page 25, Line 21(5) Advisory committee.The board may establish an
Page 26, Line 1advisory committee consisting of up to five individuals with
Page 26, Line 2expertise in financing and bonding mechanisms and investments
Page 26, Line 3to advise the board on its issuance and management of
Page 26, Line 4revenue bonds and the financing of the enterprise and reinsurance program.
Page 26, Line 5(6) Fund. (a) The wildfire catastrophe reinsurance enterprise fund is created in the state treasury.
Page 26, Line 6(b) The fund consists of:
Page 26, Line 7(I) The insurer fee imposed on homeowner's insurance policyholders pursuant to subsection (4) of this section;
Page 26, Line 8(II) Revenue from revenue bonds issued by the enterprise;
Page 26, Line 9(III) Money from investments of fees collected and revenue bond purchase payments;
Page 26, Line 10(IV) Grants or other money received from the federal
Page 26, Line 11government or gifts, grants, or donations received from other
Page 26, Line 12public or private sources to support and enhance enterprise activities; and
Page 26, Line 13(V) Any money that the general assembly may appropriate or transfer to the fund.
Page 26, Line 14(c) Money in the fund is continuously appropriated to the
Page 26, Line 15enterprise for the administration and implementation of this
Page 26, Line 16part 21, including for reinsurance payments made under the
Page 26, Line 17reinsurance program and other allowable purposes under this part 21.
Page 26, Line 18(d) The state treasurer shall credit all interest and
Page 26, Line 19income derived from the deposit and investment of money in the fund to the fund.
Page 27, Line 1(e) The enterprise shall credit the insurer fee collected
Page 27, Line 2to the fund. A fee collected by the enterprise is excluded from the state's fiscal year spending.
Page 27, Line 3(f) The enterprise may lower the insurer fee or cease
Page 27, Line 4collecting the fee in any calendar year to ensure that the total
Page 27, Line 5amount of fee revenue does not exceed one hundred million
Page 27, Line 6dollars over the first five fiscal years of the enterprise's existence.
Page 27, Line 8(7) Rules.The enterprise board shall adopt rules that are
Page 27, Line 9reasonable and necessary for the implementation and
Page 27, Line 10administration of the enterprise, including rules relating to the
Page 27, Line 11insurer fee, the issuance of revenue bonds, and reinsurance payments made pursuant to the reinsurance program.
Page 27, Line 12(8) Reporting. (a) Notwithstanding section 24-1-136
Page 27, Line 13(11)(a)(I), beginning July 1, 2027, and each July 1 thereafter, the
Page 27, Line 14enterprise shall submit a report to the committees of reference
Page 27, Line 15of the general assembly to which the department is assigned
Page 27, Line 16pursuant to section 2-7-203 concerning the administration and implementation of the enterprise and the reinsurance program.
Page 27, Line 17(b) The annual report must include:
Page 27, Line 18(I) The amount collected through the issuance of
Page 27, Line 19revenue bonds and through the imposition of the insurer fee, if
Page 27, Line 20imposed, money earned through investments, and the unobligated balance of the fund;
Page 27, Line 21(II) The effect of the enterprise on the availability and affordability of homeowner's insurance in the state; and
Page 28, Line 1(III) Any other information relevant to the success of the enterprise and the reinsurance program.
Page 28, Line 210-4-2104. Reinsurance program - creation - operation -
Page 28, Line 3payment parameters - calculation of reinsurance payments - eligible
Page 28, Line 4insurer requests - rules - definition. (1) There is created in the
Page 28, Line 5enterprise the wildfire catastrophe reinsurance program to
Page 28, Line 6provide reinsurance payments to eligible insurers. The objectives of the reinsurance program are to:
Page 28, Line 7(a) Address the challenges faced by Coloradans in affording homeowner's insurance;
Page 28, Line 8(b) Enhance competition in the homeowner's insurance market throughout the state;
Page 28, Line 9(c) Incentivize insurers to offer homeowner's insurance
Page 28, Line 10coverage in areas of the state at high risk for damage or loss due to wildfires;
Page 28, Line 11(d) Ensure insurers are offering coverage throughout the state; and
Page 28, Line 12(e) Ensure insurers are properly administering claims
Page 28, Line 13associated with state or federally declared wildfire-related
Page 28, Line 14disasters for which the enterprise makes reinsurance payments under this section.
Page 28, Line 15(2) To further the business purpose of the enterprise, the enterprise board is authorized to:
Page 28, Line 16(a) Take reasonable actions authorized pursuant to this
Page 28, Line 17section to raise money for the implementation and
Page 28, Line 18administration of the reinsurance program to achieve the purpose and objectives specified in subsection (1) of this section;
Page 29, Line 1(b) Enter into contracts to carry out the provisions and purposes of the reinsurance program;
Page 29, Line 2(c) Establish administrative and accounting procedures for the operation of the reinsurance program;
Page 29, Line 3(d) Establish procedures and standards for eligible insurers to submit claims to the reinsurance program;
Page 29, Line 4(e) Establish or adjust, by rule, the eligibility
Page 29, Line 5requirements and payment parameters in accordance with subsection (3) of this section;
Page 29, Line 6(f) Take legal action as necessary to avoid the payment of improper claims to insurers; and
Page 29, Line 7(g) Subject to section 10-4-2103 (1)(c), apply for, accept,
Page 29, Line 8and administer any federal or state money that may become
Page 29, Line 9available to the enterprise relating to a state or federally declared wildfire-related disaster.
Page 29, Line 10(3) For purposes of determining insurer eligibility for
Page 29, Line 11reinsurance payments under the reinsurance program, the board by rule shall:
Page 29, Line 12(a) Set the eligibility requirements and payment
Page 29, Line 13parameters for the reinsurance program to achieve reductions in claims costs in geographic rating areas in the state;
Page 29, Line 14(b) Determine data requirements for reinsurance
Page 29, Line 15payments made under the reinsurance program and collect or access data from each eligible insurer;
Page 29, Line 16(c) Upon the occurrence of a state or federally declared
Page 29, Line 17wildfire-related disaster, require each eligible insurer to
Page 30, Line 1report to the enterprise its claims costs as a result of the wildfire-related disaster; and
Page 30, Line 2(d) In exchange for access to the reinsurance program to mitigate an insurer's risk, require an eligible insurer to:
Page 30, Line 3(I) Provide insurance coverage based upon the eligible
Page 30, Line 4insurer's percentage of market share in the state to areas throughout the state at highest risk for wildfires; and
Page 30, Line 5(II) Reduce premiums in areas in the state at high risk for
Page 30, Line 6wildfires to account for reinsurance payments that would be provided through the reinsurance program.
Page 30, Line 7(4) (a) In response to a state or federally declared
Page 30, Line 8wildfire-related disaster, the enterprise board shall calculate
Page 30, Line 9each reinsurance payment based on an eligible insurer's
Page 30, Line 10incurred claims costs for the state or federally declared wildfire-related disaster.
Page 30, Line 11(b) An eligible insurer must make requests for
Page 30, Line 12reinsurance payments in accordance with requirements
Page 30, Line 13established by the board by rule and comply with insurer data requirements.
Page 30, Line 14(5) (a) The board shall notify eligible insurers of
Page 30, Line 15reinsurance payments to be made in accordance with subsection
Page 30, Line 16(4) of this section and shall disburse reinsurance payments to an eligible insurer.
Page 30, Line 17(b) An eligible insurer may request that the board
Page 30, Line 18reconsider a decision on the insurer's request for reinsurance
Page 30, Line 19payments within thirty days after notice of the commissioner's
Page 30, Line 20decision. A final action of the board under this subsection (5) is subject to judicial review in accordance with section 24-4-106.
Page 31, Line 1(6) If there is insufficient money in the fund to cover
Page 31, Line 2insurers' total losses from a state or federally declared
Page 31, Line 3wildfire-related disaster, the board shall establish procedures
Page 31, Line 4to pay insurers on a pro rata basis based on the amount of available money in the fund.
Page 31, Line 510-4-2105. Severability.If any provision of this part 21 or
Page 31, Line 6the application thereof to any person or circumstance is held
Page 31, Line 7invalid, such invalidity does not affect other provisions or
Page 31, Line 8applications of this part 21 that can be given effect without the
Page 31, Line 9invalid provision or application, and to this end the provisions of this part 21 are declared to be severable.
Page 31, Line 1010-4-2106. Repeal of part - subject to review.This part 21 is
Page 31, Line 11repealed, effective September 1, 2035. Before the repeal, the
Page 31, Line 12enterprise and reinsurance program are scheduled for review in accordance with section 24-34-104.
Page 31, Line 13SECTION 2. In Colorado Revised Statutes, 24-34-104, add (36)(a)(VII) and (36)(a)(VIII) as follows:
Page 31, Line 1424-34-104. General assembly review of regulatory agencies
Page 31, Line 15and functions for repeal, continuation, or reestablishment - legislative
Page 31, Line 16declaration - repeal. (36) (a) The following agencies, functions, or both are scheduled for repeal on September 1, 2035:
Page 31, Line 17(VII) The strengthen Colorado homes enterprise and the
Page 31, Line 18strengthen Colorado homes enterprise grant program created in part 20 of article 4 of title 10;
Page 31, Line 19(VIII) The wildfire catastrophe reinsurance enterprise
Page 31, Line 20and the wildfire catastrophe reinsurance program created in part 21 of article 4 of title 10.
Page 32, Line 2SECTION 3. In Colorado Revised Statutes, 10-4-405, add (1.3) as follows:
Page 32, Line 310-4-405. Filing of rating information - certain coverages.
Page 32, Line 4(1.3) Beginning with rate filings submitted on and after January
Page 32, Line 51, 2026, an insurer offering homeowner's insurance for property
Page 32, Line 6located in the state shall include in its filing the following two sets of rates:
Page 32, Line 7(a) One set of rates that shows the rates after taking into
Page 32, Line 8consideration the reinsurance program created in section 10-4-2104; and
Page 32, Line 9(b) One set of rates that shows the rates as if the
Page 32, Line 10reinsurance program created in section 10-4-2104 had not taken effect.
Page 32, Line 11SECTION 4. In Colorado Revised Statutes, 10-4-110.8, amend (6)(b) as follows:
Page 32, Line 1210-4-110.8. Homeowner's insurance - prohibited and required
Page 32, Line 13practices - estimates of replacement value - additional living expense
Page 32, Line 14coverage - copies of policies - personal property contents coverage -
Page 32, Line 15inventory of personal property - requirements concerning total loss
Page 32, Line 16scenarios resulting from wildfire disasters - definitions - rules.
Page 32, Line 17(6) (b) (I) All homeowner's insurance replacement-cost policies for a
Page 32, Line 18dwelling must include additional living expense coverage. This coverage
Page 32, Line 19must be available for a period of at least twelve months and is subject to
Page 32, Line 20other policy provisions. Insurers shall offer policyholders the opportunity
Page 32, Line 21to purchase a total of twenty-four months of ALE coverage and give an
Page 33, Line 1applicant an explanation of the purpose, terms, and cost of this coverage.
Page 33, Line 2This
paragraph (b)anyPage 33, Line 3homeowner's insurance policy that already includes at least twenty-four months of ALE coverage as a standard provision.
Page 33, Line 4(II) In addition to offering a replacement-cost policy in
Page 33, Line 5accordance with subsection (6)(b)(I) of this section, an insurer
Page 33, Line 6may offer a replacement-cost policy that has a reasonable
Page 33, Line 7coverage limit or percentage cap for additional living expenses
Page 33, Line 8if the insurer provides a premium decrease for the coverage limit or percentage cap that is approved by the division.
Page 33, Line 9SECTION 5. Act subject to petition - effective date. This act
Page 33, Line 10takes effect at 12:01 a.m. on the day following the expiration of the
Page 33, Line 11ninety-day period after final adjournment of the general assembly; except
Page 33, Line 12that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 33, Line 13of the state constitution against this act or an item, section, or part of this
Page 33, Line 14act within such period, then the act, item, section, or part will not take
Page 33, Line 15effect unless approved by the people at the general election to be held in
Page 33, Line 16November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.