Roberts Bill to Create Property Insurance of Last Resort Clears Senate

Roberts: “The FAIR Insurance Plan will help protect vulnerable Coloradans and allow folks to insure their homes, businesses, and property against potential disasters."

DENVER, CO – Legislation sponsored by Senator Dylan Roberts, D-Avon, that would create a program to offer property insurance of last resort to Colorado homeowners in wildfire prone areas cleared the Senate today.

HB23-1288 would create the Fair Access to Insurance Requirements (FAIR) Plan Association, a nonprofit, unincorporated legal entity to ensure Coloradans with homes and commercial properties located in wildfire zones can receive homeowners or commercial insurance. 

“Wildfires are becoming increasingly destructive, and it’s making it difficult or sometimes impossible for folks who live in rural communities like mine to purchase homeowners insurance,” Roberts said. “The FAIR Insurance Plan will help protect vulnerable Coloradans and allow folks to insure their homes, businesses, and property against potential disasters.”

The program will be operated at no cost to the state — income and losses will be shared proportionally among insurance companies operating in Colorado. FAIR plans will not be issued directly through the state, but rather through participating insurance companies. Insurance under the FAIR plan would be required to include rates that:

• Are not excessive, inadequate, or unfairly discriminatory;

• Are actuarially sound so that revenue generated from premiums is adequate to pay for expected losses, expenses, and taxes and the cost of reinsurance; 

• Reflect the investment income of the FAIR plan; and

• Reflect the cost of reinsurance or to other capital risk transfer markets.

HB23-1288 will now move to the Governor’s desk. Track the bill’s progress HERE.