HB25-1205 Summary

HB25-1205: Implement Fair Access to Insurance Requirements Plan

Prime Sponsors: Representative Julie McCluskie, Representative Kyle Brown, Senator Judy Amabile, Senator Dylan Robert

Introduced: February 10, 2025

Signed: April 17, 2025

Effective Date: April 17, 2025

Summary:

Previously, the HOA Information and Resource Center has provided information about the FAIR Plan (see HOA Center Advisory: The Fair Access to Insurance Requirements (“FAIR”) Plan - An Insurer of Last Resort) which was created to address the rising cost and availability of property insurance. This law clarifies the FAIR Plan, which was created by HB23-1288.

While the FAIR Plan serves an imperative role in the Colorado insurance market by offering insurance coverage when other coverage is not available, a few items needed clarification. HB25-1205 does that. First, the law clarifies that the association created in furtherance of the FAIR Plan is not a department, unit, agency, political subdivision, or instrumentality of the state. While it is a legal entity, it is not a public entity. It is also not considered an insurance company or person engaged in the business of insurance.

Policyholders of a FAIR Plan policy have limited causes of action against the association. In particular, the exclusive causes of actions are for breach of contract or breach of the common law covenant of good faith and fair dealing.

While the changes established by HB25-1205 are important limitations, the FAIR Plan still provides consumers and businesses in Colorado with an imperative service. To learn more about the FAIR Plan, you can visit:

The Fair Plan

Return to 2025 Legislative Summaries Page

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