The Colorado Division of Insurance published a press release announcing the adoption of two regulations related to the recent wildfires.
Emergency Regulation 26-E-04 has been adopted in response to the Aspen Acres Fire, which is estimated to have damaged or destroyed over 200 homes. The regulation places a moratorium on the cancellations and nonrenewals of insurance contracts for 60 days based on the location of the risk within the areas affected by the fire.
If an insurer issued a notice of cancellation or nonrenewal, it must be withdrawn, and the insurer must issue an updated notice informing policyholders that the cancellation is suspended until the expiration of the emergency regulation.
The regulation does not waive the policyholder's obligation to pay the premium. The regulation is effective August 19, 2026.
Regulation 5-1-29 establishes rules for rate and rule filings related to an insurer's use of wildfire risk models for rating and underwriting, and applies to insurers that issue homeowners or property insurance policies in the state and the Colorado FAIR Plan.
Insurers that use wildfire risk models, catastrophe models, or scoring methods in rating or premium determination must provide documentation and actuarial justification supporting the models. Rate filings must include a clear explanation of an insurer's use of models or scoring methods in underwriting decisions.
Regulation 5-1-29 is effective January 1, 2027.
The press release can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.