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Achievable Property & Casualty

37. Colorado Insurance Laws, Regulations, and Ethics

37.4. Property & Casualty Insurance Regulations

Colorado Regulations Pertinent to Property Insurance Only

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Fraudulent Claims and Arson Reporting Act

References: C.R.S. 10-4-1001 through 1008; 10-1-128; Reg. 6-5-1

Colorado requires insurers to combat arson and fraud through reporting procedures.

Key Provisions

Insurers must report suspected arson or fraudulent claims to law enforcement.
Insurers must release claim information to law enforcement upon request.
Immunity is granted to insurers who share information in good faith.
Fraudulent claims are a felony, and insurers must maintain anti-fraud plans.

Insurance and Loans Secured by Real Property

Although not governed by a single statute, Colorado restricts certain lender practices:

Lenders cannot force-place insurance unless the borrower fails to maintain required coverage.
Coverage may not exceed the reasonable replacement value of the improvements (not total loan amount). Borrowers must receive notice before forced placement occurs.

Homeowners Insurance Regulations

Cancellation and Nonrenewal

Reference: C.R.S. 10-4-110.7

Reasons allowed for cancellation/nonrenewal include:

Nonpayment of premium
Fraud or material misrepresentation
Substantial change in risk
Multiple claims within a defined period (subject to limits)

Restrictions include:

60-day written notice, stating the reasons, required for cancellation or nonrenewal (10 days when cancellation is for nonpayment of premium)
Protective safeguards (e.g., alarms) cannot be used unfairly
Claims for weather, fire, or non-fault losses cannot be sole grounds for nonrenewal

Required Coverages

References:C.R.S. 10-4-110.8; Reg. 5-1-25; 5-1-26

Homeowners policies must include:

Disclosure of actual cash value vs replacement cost
Explanation of depreciation
Catastrophe deductibles
Clear explanation of exclusions (mold, water backup, etc.)

Availability of Fire Insurance

References: 10-4-110.7; 10-4-110.9; 10-4-1801 through 1812; Reg. 5-1-17

Colorado maintains mechanisms to ensure fire insurance availability.

Fair Access to Insurance Requirements (FAIR) Plan

Designed to provide coverage for homeowners in high-risk wildfire or urban blight areas.
Applicants must show legitimate attempts to obtain coverage from standard markets.
Rates must be adequate and non-discriminatory.
The state can require insurers to participate in shared risk pools.

Fraudulent Claims and Arson Reporting Act

Insurers must report suspected arson/fraud to law enforcement
Must release claim info to law enforcement upon request
Good-faith information sharing grants insurer immunity
Fraudulent claims = felony; insurers must maintain anti-fraud plans

Insurance and Loans Secured by Real Property

Force-placed insurance only allowed if borrower fails to maintain coverage
Coverage capped at reasonable replacement value, not full loan amount
Borrower must receive notice before forced placement

Homeowners Insurance Regulations: Cancellation and Nonrenewal

Allowed reasons: nonpayment, fraud/misrepresentation, substantial risk change, multiple claims (within limits)
Requires 60-day written notice, stating the reasons, for cancellation or nonrenewal (10 days for nonpayment of premium)
Cannot unfairly penalize protective safeguards (e.g., alarms)
Weather, fire, or non-fault losses cannot be sole basis for nonrenewal

Homeowners Insurance Regulations: Required Coverages

Must disclose actual cash value vs. replacement cost
Must explain depreciation and catastrophe deductibles
Must clearly explain exclusions (e.g., mold, water backup)

Availability of Fire Insurance (FAIR Plan)

Ensures coverage access in high-risk wildfire/urban blight areas
Applicants must show prior attempts to secure standard market coverage
Rates must be adequate and non-discriminatory
State may mandate insurer participation in shared risk pools

Next | 37.4.4 Colorado Regulations Pertinent to Casualty Insurance Only

Colorado Regulations Pertinent to Property Insurance Only

Fraudulent Claims and Arson Reporting Act

References: C.R.S. 10-4-1001 through 1008; 10-1-128; Reg. 6-5-1

Colorado requires insurers to combat arson and fraud through reporting procedures.

Key Provisions

Insurers must report suspected arson or fraudulent claims to law enforcement.
Insurers must release claim information to law enforcement upon request.
Immunity is granted to insurers who share information in good faith.
Fraudulent claims are a felony, and insurers must maintain anti-fraud plans.

Insurance and Loans Secured by Real Property

Although not governed by a single statute, Colorado restricts certain lender practices:

Lenders cannot force-place insurance unless the borrower fails to maintain required coverage.
Coverage may not exceed the reasonable replacement value of the improvements (not total loan amount). Borrowers must receive notice before forced placement occurs.

Homeowners Insurance Regulations

Cancellation and Nonrenewal

Reference: C.R.S. 10-4-110.7

Reasons allowed for cancellation/nonrenewal include:

Nonpayment of premium
Fraud or material misrepresentation
Substantial change in risk
Multiple claims within a defined period (subject to limits)

Restrictions include:

60-day written notice, stating the reasons, required for cancellation or nonrenewal (10 days when cancellation is for nonpayment of premium)
Protective safeguards (e.g., alarms) cannot be used unfairly
Claims for weather, fire, or non-fault losses cannot be sole grounds for nonrenewal

Required Coverages

References:C.R.S. 10-4-110.8; Reg. 5-1-25; 5-1-26

Homeowners policies must include:

Disclosure of actual cash value vs replacement cost
Explanation of depreciation
Catastrophe deductibles
Clear explanation of exclusions (mold, water backup, etc.)

Availability of Fire Insurance

References: 10-4-110.7; 10-4-110.9; 10-4-1801 through 1812; Reg. 5-1-17

Colorado maintains mechanisms to ensure fire insurance availability.

Fair Access to Insurance Requirements (FAIR) Plan

Designed to provide coverage for homeowners in high-risk wildfire or urban blight areas.
Applicants must show legitimate attempts to obtain coverage from standard markets.
Rates must be adequate and non-discriminatory.
The state can require insurers to participate in shared risk pools.

Achievable Property & Casualty

37. Colorado Insurance Laws, Regulations, and Ethics

37.4. Property & Casualty Insurance Regulations

Colorado Regulations Pertinent to Property Insurance Only

2 min read

Font

Discuss

Feedback

Fraudulent Claims and Arson Reporting Act

References: C.R.S. 10-4-1001 through 1008; 10-1-128; Reg. 6-5-1

Colorado requires insurers to combat arson and fraud through reporting procedures.

Key Provisions

Insurers must report suspected arson or fraudulent claims to law enforcement.
Insurers must release claim information to law enforcement upon request.
Immunity is granted to insurers who share information in good faith.
Fraudulent claims are a felony, and insurers must maintain anti-fraud plans.

Insurance and Loans Secured by Real Property

Although not governed by a single statute, Colorado restricts certain lender practices:

Lenders cannot force-place insurance unless the borrower fails to maintain required coverage.
Coverage may not exceed the reasonable replacement value of the improvements (not total loan amount). Borrowers must receive notice before forced placement occurs.

Homeowners Insurance Regulations

Cancellation and Nonrenewal

Reference: C.R.S. 10-4-110.7

Reasons allowed for cancellation/nonrenewal include:

Nonpayment of premium
Fraud or material misrepresentation
Substantial change in risk
Multiple claims within a defined period (subject to limits)

Restrictions include:

60-day written notice, stating the reasons, required for cancellation or nonrenewal (10 days when cancellation is for nonpayment of premium)
Protective safeguards (e.g., alarms) cannot be used unfairly
Claims for weather, fire, or non-fault losses cannot be sole grounds for nonrenewal

Required Coverages

References:C.R.S. 10-4-110.8; Reg. 5-1-25; 5-1-26

Homeowners policies must include:

Disclosure of actual cash value vs replacement cost
Explanation of depreciation
Catastrophe deductibles
Clear explanation of exclusions (mold, water backup, etc.)

Availability of Fire Insurance

References: 10-4-110.7; 10-4-110.9; 10-4-1801 through 1812; Reg. 5-1-17

Colorado maintains mechanisms to ensure fire insurance availability.

Fair Access to Insurance Requirements (FAIR) Plan

Designed to provide coverage for homeowners in high-risk wildfire or urban blight areas.
Applicants must show legitimate attempts to obtain coverage from standard markets.
Rates must be adequate and non-discriminatory.
The state can require insurers to participate in shared risk pools.

Fraudulent Claims and Arson Reporting Act

Insurers must report suspected arson/fraud to law enforcement
Must release claim info to law enforcement upon request
Good-faith information sharing grants insurer immunity
Fraudulent claims = felony; insurers must maintain anti-fraud plans

Insurance and Loans Secured by Real Property

Force-placed insurance only allowed if borrower fails to maintain coverage
Coverage capped at reasonable replacement value, not full loan amount
Borrower must receive notice before forced placement

Homeowners Insurance Regulations: Cancellation and Nonrenewal

Allowed reasons: nonpayment, fraud/misrepresentation, substantial risk change, multiple claims (within limits)
Requires 60-day written notice, stating the reasons, for cancellation or nonrenewal (10 days for nonpayment of premium)
Cannot unfairly penalize protective safeguards (e.g., alarms)
Weather, fire, or non-fault losses cannot be sole basis for nonrenewal

Homeowners Insurance Regulations: Required Coverages

Must disclose actual cash value vs. replacement cost
Must explain depreciation and catastrophe deductibles
Must clearly explain exclusions (e.g., mold, water backup)

Availability of Fire Insurance (FAIR Plan)

Ensures coverage access in high-risk wildfire/urban blight areas
Applicants must show prior attempts to secure standard market coverage
Rates must be adequate and non-discriminatory
State may mandate insurer participation in shared risk pools

Next | 37.4.4 Colorado Regulations Pertinent to Casualty Insurance Only

Colorado Regulations Pertinent to Property Insurance Only

Fraudulent Claims and Arson Reporting Act

References: C.R.S. 10-4-1001 through 1008; 10-1-128; Reg. 6-5-1

Colorado requires insurers to combat arson and fraud through reporting procedures.

Key Provisions

Insurers must report suspected arson or fraudulent claims to law enforcement.
Insurers must release claim information to law enforcement upon request.
Immunity is granted to insurers who share information in good faith.
Fraudulent claims are a felony, and insurers must maintain anti-fraud plans.

Insurance and Loans Secured by Real Property

Although not governed by a single statute, Colorado restricts certain lender practices:

Lenders cannot force-place insurance unless the borrower fails to maintain required coverage.
Coverage may not exceed the reasonable replacement value of the improvements (not total loan amount). Borrowers must receive notice before forced placement occurs.

Homeowners Insurance Regulations

Cancellation and Nonrenewal

Reference: C.R.S. 10-4-110.7

Reasons allowed for cancellation/nonrenewal include:

Nonpayment of premium
Fraud or material misrepresentation
Substantial change in risk
Multiple claims within a defined period (subject to limits)

Restrictions include:

60-day written notice, stating the reasons, required for cancellation or nonrenewal (10 days when cancellation is for nonpayment of premium)
Protective safeguards (e.g., alarms) cannot be used unfairly
Claims for weather, fire, or non-fault losses cannot be sole grounds for nonrenewal

Required Coverages

References:C.R.S. 10-4-110.8; Reg. 5-1-25; 5-1-26

Homeowners policies must include:

Disclosure of actual cash value vs replacement cost
Explanation of depreciation
Catastrophe deductibles
Clear explanation of exclusions (mold, water backup, etc.)

Availability of Fire Insurance

References: 10-4-110.7; 10-4-110.9; 10-4-1801 through 1812; Reg. 5-1-17

Colorado maintains mechanisms to ensure fire insurance availability.

Fair Access to Insurance Requirements (FAIR) Plan

Designed to provide coverage for homeowners in high-risk wildfire or urban blight areas.
Applicants must show legitimate attempts to obtain coverage from standard markets.
Rates must be adequate and non-discriminatory.
The state can require insurers to participate in shared risk pools.