Bipartisan Bill to Reduce Property Insurance Costs Unanimously Passes Senate Committee
HB25-1182 would improve accountability from insurance companies who use risk management models to assess price
DENVER, CO – Legislation sponsored by Senator Lisa Cutter, D-Jefferson County, to improve transparency and accountability from property insurance companies passed the Senate Business, Labor and Technology Committee unanimously today.
“I frequently hear from constituents that they are being denied insurance or their premiums have increased dramatically. It has always concerned me that we incentivize and encourage mitigation, but there’s no way to tie these efforts directly to insurance,” Cutter said. “This bill addresses that, requiring insurers to consider mitigation efforts, provide transparency to homeowners on the wildfire risk models they use, and give them the opportunity to appeal directly.”
HB25-1182, cosponsored by Senator Cleave Simpson, R-Alamosa, would require that insurance companies who use risk management models to assess price according to risk of wildfires and other catastrophic events to provide thorough information about how the models impact an individual’s insurance policy with policyholders and the Division of Insurance in the Department of Regulatory Agencies.
Insurance companies must also accurately consider mitigation efforts from policyholders when assessing risk, implement and publicize discounts and rewards programs for mitigating risk, and clear a path for policyholders to appeal their risk classification data if they believe it’s inaccurate. Insurers would be required to respond to an appeal with a decision within 30 days.
The bill is another example of Democrat-led bills to prevent big companies from gouging consumers for profit in the event of an emergency or natural disaster. HB25-1010, which is moving through the Senate now, would crack down on corporate price gouging during emergency situations.
HB25-1182 now moves to the Senate floor for further consideration. Track its progress HERE.