C.R.S. § 10-4-2005: Study regarding insurance risk in high-risk wildfire areas of the state - repeal.

(1) The board shall conduct or cause to be conducted a study to analyze:

(a) The insurance risk in high-risk wildfire areas of the state, including an analysis of the degree of market competition among insurers in those areas; and

(b) The impact of a high risk program on the potential losses in the high-risk wildfire areas of the state and on the availability of homeowner's insurance in those areas.

(2) The study shall evaluate and make recommendations regarding the structure of a high risk program, appropriate attachment points and caps, and ways to avoid competition with the private insurance market. The study may explore potential funding mechanisms for the program.

(3) The board may contract with a third party to conduct all or part of the study. The board, or a third party the board enters into a contract with to conduct the study, shall engage with relevant stakeholders in conducting the study. Relevant stakeholders must include, at a minimum:

(a) Representatives of reinsurers;

(b) Representatives of insurers writing homeowner's insurance contracts or policies in Colorado;

(c) Representatives of reinsurance brokers;

(d) Individuals with expertise in complex financial instruments and debt instruments; and

(e) Consumers or individuals with experience in wildfire mitigation.

(4) The board shall submit the study required by subsections (1) and (2) of this section to the house of representatives transportation, housing, and local government committee and the senate local government and housing committee, or their successor committees, and shall publish the study on the division's website.

(5) This section is repealed, effective July 1, 2031.