Colorado insurance laws
Insurance regulations, rate filing requirements, department info, and recent bulletins for Colorado. Updated Mar 31, 2026.
Department of Insurance
Colorado operates a File & Use rate system for most insurance products, allowing insurers to implement rates upon filing with the Division of Insurance. The state has been a leader in consumer protection, enacting the nation's first law prohibiting algorithmic discrimination in insurance (SB 21-169). Colorado maintains a state-based health insurance marketplace (Connect for Health Colorado) and has expanded Medicaid under the ACA. The regulatory environment emphasizes consumer protection while fostering market innovation, with recent focus on wildfire mitigation disclosure and climate-related insurance challenges.
Auto Insurance
Notable Laws
- Colo. Rev. Stat. § 10-4-609 - Requires insurers to offer UM/UIM coverage equal to bodily injury liability limits; rejection must be in writing
- Colo. Rev. Stat. § 42-4-1409 - Driving without insurance is a class 1 misdemeanor with minimum $500 fine and license suspension
- Colo. Rev. Stat. § 10-4-636 - Mandates insurers file rate schedules and policy forms for public inspection
- Colo. Rev. Stat. § 42-7-301 to 42-7-305 - SR-22 filing requirements for high-risk drivers including DUI offenders
- Colo. Rev. Stat. § 10-4-116 - Regulates use of credit information in auto insurance underwriting and rating
Homeowners Insurance
Notable Laws
- Colo. Rev. Stat. § 10-4-110.7 - Requires 60-day notice for non-renewal, 30-day notice for cancellation (10 days for non-payment)
- HB 25-1205 (§ 10-4-118) - Establishes Colorado FAIR Plan as insurer of last resort with $750,000 residential coverage limit
- Colo. Rev. Stat. § 10-4-116 - Permits use of credit scoring for homeowners insurance underwriting and rating with disclosure requirements
- Bulletin B-5.56 (2026) - Requires insurers to disclose wildfire risk scores, mitigation discounts, and appeal rights annually
- Bulletin B-5.53 (2025) - Clarifies that smoke and soot damage are part of fire damage and must be covered under property policies
Recent Bulletins
Concerning the Medical Inflation Trend Calculation for the Premium Rate Reduction Requirements on the Colorado Option Standardized Health Benefit Plans
Provides guidance to carriers on calculating medical inflation trend for Colorado Option plans using Bureau of Labor Statistics data, establishing methodology for premium rate reduction requirements.
View bulletinPregnancy Special Enrollment Period
Explains requirements for notifying eligible pregnant individuals about the new Special Enrollment Period beginning January 1, 2024, allowing pregnant women to enroll in health coverage outside the regular open enrollment period.
View bulletinConcerning Payment of Registration Fees for Total Loss Vehicles
Provides clarification regarding an insurer's payment of registration fees for total loss vehicles under Colorado law.
View bulletinDivision Position on Smoke and Soot Damage Coverage
Reminds insurers that smoke and soot are part of fire damage and must be covered under property insurance policies, establishing standards for wildfire-related claims.
View bulletinDivision Position Requirement for Policyholders to Pay Auto Insurance Deductibles
Reminds insurers of their role in preventing the waiver of policyholders' deductibles and clarifies policyholder obligations regarding auto insurance deductibles.
View bulletinRecent Law Changes
Restrict Insurers' Use Of External Consumer Data
Prohibits insurers from unfairly discriminating based on protected characteristics such as race, color, sex, or disability. Restricts use of external consumer data sources, algorithms, and predictive models that result in unfair discrimination. Requires insurers to test their data use and establish risk management frameworks.
Insurers must conduct regular testing of algorithms and data sources to ensure they don't produce discriminatory outcomes, with annual reporting requirements to the Division.
Effective: 2021-09-07
Health Insurance Surprise Billing Protections
Aligns Colorado's surprise billing laws with federal No Surprises Act, updating out-of-network billing protections and dispute resolution processes for consumers receiving emergency or inadvertent out-of-network care.
Consumers receive maximum protection against surprise medical bills through coordinated state and federal laws covering emergency services and out-of-network care.
Effective: 2022-08-10
Coverage For Doula Services
Requires Medicaid expansion for doula services by July 1, 2024, creates doula scholarship program, and directs study of doula coverage benefits in private health insurance plans to improve maternal and infant health outcomes.
Medicaid recipients gain access to doula services with scholarship support for training, improving maternal health outcomes particularly for underserved populations.
Effective: 2023-05-30
Insurance Holding Company Model Regulation
Updates Colorado statutes concerning insurance company holding systems to align with the National Association of Insurance Commissioners' model act, modernizing governance and reporting standards for insurance groups.
Insurance holding companies must comply with enhanced disclosure requirements and corporate governance standards aligned with national best practices.
Effective: 2025-01-01
Insurance Coverage Pediatric Neuropsychiatric Syndrome
Requires all individual and group health benefit plans to provide coverage for pediatric acute-onset neuropsychiatric syndrome (PANS/PANDAS) including prophylaxis, diagnosis, and treatment adhering to medical consortium recommendations.
Families with children suffering from PANS/PANDAS receive mandatory insurance coverage for specialized diagnosis and treatment including IVIG therapy.
Effective: 2025-01-01
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