Skip to main content
Colorado General AssemblyToggle Main Menu
Agency NameToggle Agency Menu

Fair Access To Insurance Requirements Plan

Concerning fair access to insurance coverage for persons unable to obtain insurance coverage for their real property.
2023 Regular Session
Bill Summary

The act creates an unincorporated public entity, the fair access to insurance requirements plan association (association), to provide property insurance coverage when such coverage is not available from admitted companies.

The association must:

  • Establish, offer, and maintain a property insurance policy and a commercial property insurance policy that satisfy the requirements specified in the act; and
  • Assess and share among member insurers all expenses, income, and losses based on each member insurer's written premium for property and commercial property insurance in the state.

The association is managed by a board of directors consisting of 9 members appointed by the governor. The board is required to administer the fair access to insurance requirements plan (FAIR plan).

The FAIR plan must 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;
  • Reflect the investment income of the FAIR plan; and
  • Reflect the cost of reinsurance or other capital risk transfer markets.

The board must establish a plan of operation for the FAIR plan. The plan of operation must provide for:

  • The lines of insurance coverages to be written;
  • Coverage limits not to exceed $750,000 for property and $5,000,000 for commercial property owners;
  • The policy forms to be used;
  • The perils to be covered;
  • The establishment of reasonable underwriting standards to determine the eligibility of a risk, including mitigation requirements and property inspections;
  • The compensation and commissions to be paid to licensed producers offering the FAIR plan;
  • The time frames for fees to be collected from member insurers;
  • Proportional assessments against member insurers;
  • The administration of the plan of operation by the board; and
  • Any other matter necessary or convenient for the purpose of assuring fair access to a FAIR plan.

The FAIR plan association may collect fees from member insurers and the commissioner of insurance may suspend or revoke a member insurer's certificate of authority to transact insurance business in this state or impose against the member insurer a fine in an amount equal to the greater of the fee plus interest or $5,000 for the member insurer's failure to timely pay a fee or to comply with the plan of operation for the FAIR plan.

APPROVED by Governor May 12, 2023

EFFECTIVE August 7, 2023

NOTE: This act was passed without a safety clause and takes effect 90 days after sine die.
(Note: This summary applies to this bill as enacted.)


Became Law


Bill Text

The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details