CO| Colorado Regulation 5-1-29 establishes Colorado Division of Insurance filing standards for admitted insurers and the Colorado FAIR Plan that use wildfire, catastrophe, combined, or scoring models in homeowners and specified residential property insurance underwriting or rating. It requires transparent actuarial support for model-driven rating and eligibility decisions, along with detailed substantiation of wildfire-mitigation treatment and premium reductions; commercial farm/ranch policies and non-admitted insurers are excluded.
- Filing, governance, and enforcement: Insurers and the FAIR Plan must submit an initial compliant SERFF rate/rule filing within 60 days of the regulation’s effective date, update disclosures in subsequent filings, obtain approval support before implementing material changes, protect designated underwriting information and models as confidential, and face potential civil penalties, cease-and-desist orders, or license actions for noncompliance.
- Model and rating support: Relevant rate filings must include completed model questionnaires, explanations of supplemental data and underwriting use, and actuarial justification showing that wildfire rating differentials align with model output—or explaining any departure.
- Mitigation documentation: Filings must identify how property-specific, community-level, and, where data permits, statewide mitigation affect model factors, expected and actual losses, base premiums, discounts, incentives, and other premium adjustments; each mitigation measure or program must be justified.