As used in this part 18, unless the context otherwise requires:
(1) Board means the board of directors of the FAIR plan association created in section 10-4-1805.
(2) Commercial property insurance means insurance against direct loss to commercial property, including buildings and building contents, resulting from the perils of fire, perils covered under extended coverage, vandalism, or malicious mischief. Commercial property insurance does not include commercial automobile insurance or farm risks.
(3) FAIR plan or plan means the fair access to insurance requirements plan established by the board pursuant to section 10-4-1806.
(4) FAIR plan association or association means the fair access to insurance requirements plan association created in section 10-4-1804.
(5) Member insurer means any admitted company that offers or sells any property insurance, including commercial property insurance.
(6) Property insurance means insurance against direct loss to residential property, including buildings and building contents, resulting from the perils of fire, perils covered under extended coverage, vandalism, or malicious mischief. Property insurance does not include automobile insurance or farm risks.
Source: L. 2023: Entire part added, (HB 23-1288), ch. 170, p. 831, � 1, effective August 7.
10-4-1804. Fair access to insurance requirements plan association - creation - participation required. (1) There is created the fair access to insurance requirements plan association, or FAIR plan association, which is a nonprofit, unincorporated legal entity. All member insurers are and remain members of the association as a condition of each member insurer's authority to transact insurance business in this state. The association shall perform its functions under a plan of operation established and approved under section 10-4-1807 and shall exercise its powers through a board of directors established under section 10-4-1805.
(1.5) The FAIR plan association is not a department, unit, agency, political subdivision, or instrumentality of the state. All debts, claims, obligations, and liabilities incurred by the association are the debts, claims, obligations, and liabilities of the association only, and are not the debts or pledges of credit of the state or the state's agencies, instrumentalities, officers, or employees. The funds of the association are not part of the general fund of the state, and the state shall not budget for or provide general fund appropriations to the association.
(2) The FAIR plan association is established to provide property insurance coverage, including commercial property insurance, when such coverage is not available from admitted companies. The FAIR plan association is not an insurance company or a person engaged in the business of insurance; except that the plan association must comply with sections 10-1-128; 10-1-136; 10-1-137; 10-3-1104 (1)(h); 10-4-104; 10-4-109.7; 10-4-110; 10-4-110.5; 10-4-110.7; 10-4-110.8 (1), (2), (3), (4), (7), (9), (10), (11)(a), (11)(b), (11)(c)(I), (12), (13)(h), (14), and (16); 10-4-110.9; 10-4-111; 10-4-116; 10-4-117; 10-4-119; 10-4-120; and 10-4-1001 to 10-4-1009.
(3) The FAIR plan association shall:
(a) Establish, offer, and maintain a property insurance and a commercial property insurance policy that satisfy the requirements of the FAIR plan specified in section 10-4-1806; and
(b) Assess and share among member insurers, on a fair and equitable basis, all expenses, income, and losses based on each member insurer's written premium for property and commercial property insurance and in the same proportion that a member insurer's premiums written bear to the aggregate premiums written in the state by all member insurers of the association during the preceding calendar year, consistent with this part 18.
(4) The FAIR plan association may issue property insurance policies, including commercial property insurance policies, and reinsure in whole or in part any such policies, cede any such reinsurance, or transfer risk to other capital markets.
(5) The association shall establish a public website that includes information about the FAIR plan. The website must include a toll-free telephone number that a person may use to obtain information about the plan.
Source: L. 2023: Entire part added, (HB 23-1288), ch. 170, p. 831, � 1, effective August 7. L. 2025: (1), (2), and (3)(b) amended and (1.5) added, (HB 25-1205), ch. 81, p. 338, � 1, effective April 17.
10-4-1805. Fair access to insurance requirements plan association - board of directors - membership - duties - report. (1) (a) The FAIR plan association board of directors is created as the governing body of the association and to administer the FAIR plan. The board consists of members appointed by the governor as follows:
(I) Two members representing admitted mutual insurers writing property insurance in Colorado;
(II) Two members representing admitted stock insurers writing property insurance in Colorado;
(III) One member representing a Colorado-based insurance trade organization that represents insurers of various property interests;
(IV) One member representing a Colorado-based insurance trade association that represents independent insurance agents licensed to write property and casualty insurance in Colorado;
(V) One member who is an insurance producer licensed pursuant to article 2 of this title 10 to write property and casualty insurance in Colorado; and
(VI) Two members representing the interests of consumers and, to the extent practicable, representing consumer advocacy organizations and diverse geographic areas of the state.
(b) The governor shall make the initial appointments to the board on or before January 1, 2024.
(c) The term of office of board members is three years; except that:
(I) Each board member serves at the pleasure of the governor; and
(II) To ensure staggered membership, of the initial members appointed to the board:
(A) One of the members initially appointed pursuant to subsection (1)(a)(I) or (1)(a)(II) of this section and one of the members initially appointed pursuant to subsection (1)(a)(IV) or (1)(a)(V) of this section shall each serve an initial term of one year; and
(B) The member initially appointed pursuant to subsection (1)(a)(III) of this section and one of the members initially appointed pursuant to subsection (1)(a)(VI) of this section shall each serve an initial term of two years.
(d) A board member may serve four terms.
(e) If a vacancy occurs on the board, the governor shall appoint a new board member to complete the remainder of the board member's term.
(2) The board may, on its own initiative or at the request of the commissioner, amend the plan of operation described in section 10-4-1807, subject to approval by the commissioner.
(3) (a) On or before April 1, 2025, and on or before each April 1 thereafter, the board shall submit to the commissioner, in the form and manner determined by the commissioner, a report concerning the FAIR plan during the preceding calendar year. The report must include information concerning:
(I) The financial condition of the plan;
(II) The number of policies and the coverage available through the plan;
(III) The number and types of claims made under the plan; and
(IV) A description of the sufficiency of coverage under and finances of the plan.
(b) In addition to this annual reporting requirement, the commissioner may require the board to submit quarterly reports or may examine the affairs of the FAIR plan association if the commissioner determines that such action is necessary to ensure the continued solvency of the plan.
Source: L. 2023: Entire part added, (HB 23-1288), ch. 170, p. 832, � 1, effective August 7.