HB 24-1108

House Bill 24-1108 requires the Colorado Insurance Commissioner to study the property and casualty insurance market for unit owners' associations of common interest communities and hotel/lodging facility owners. The study will look at current conditions, recommend measures to ensure long-term sustainability, and explore if forming captive insurance companies could affect the market. The commissioner can hire a third party to help with the research and must submit a report by January 1, 2026, detailing their findings. This bill was signed into law on May 31, 2024, and took effect on August 7, 2024.

Official Summary

The act requires the commissioner of insurance (commissioner) to conduct a study concerning the market for property and casualty insurance policies issued by insurers to: Unit owners' associations (associations) of common interest communities; and Owners of hotels and lodging facilities (owners). To the extent practicable, the study must include consideration of: Current market conditions, including certain data; Recommendations regarding potential measures and programs to ensure the long-term sustainability and availability of property and casualty insurance policies issued to associations and owners; Whether any captive insurance companies have been formed by an association or an owner; and Whether the formation of a captive insurance company by an association or an owner could impact current market conditions. The commissioner may contract with a third party to conduct the study. The commissioner and any third party must engage with and seek input from insurers, consumer groups, and other interested parties. As part of the study, the commissioner may collect specific data from insurers. Information submitted by an insurer is subject to public inspection only to the extent allowed under the "Colorado Open Records Act". The division of insurance and any third-party contractor may not disclose trade secrets or confidential or proprietary information. The commissioner must prepare a report summarizing the results of the study and, on or before January 1, 2026, submit the report to the joint budget committee, to the business affairs and labor committee of the house of representatives, and to the business, labor, and technology committee of the senate. For the 2024-25 state fiscal year, the act appropriates $329,863 from the division of insurance cash fund to the department of regulatory agencies for use by the division of insurance. Of this amount, any amount up to $300,000 not expended prior to July 1, 2025, is further appropriated to the division for the 2025-26 state fiscal year for the same purpose. APPROVED by Governor May 31, 2024 EFFECTIVE August 7, 2024(Note: This summary applies to this bill as enacted.)

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