Vote Smart's Synopsis:

Vote to pass a bill that establishes a 1.5% tax on homeowner insurance policies in Colorado and appropriates revenues to an environmental risk grant program.

Highlights:

• Establishes the strengthen Colorado homes enterprise to impose a fee on certain homeowner’s insurance policyholders and to provide a grant for policyholders to retrofit residential property with weather resilient roof systems (Sec. 1).

• Specifies that the fee is on a per-plan basis and is equal to one-half percent of the percentage of total premiums collected by each insurer in the preceding calendar year (Sec. 1).

• Specifies that the fee will be issued on policies for homes that do not have a resilient roof system (Sec. 1).

• Establishes the wildfire catastrophe reinsurance enterprise to make reinsurance payments to insurers to partially mitigate losses in the event of a state or federally declared wildfire-related disaster (Sec. 1).

• Specifies that insurers must sell homeowner’s insurance in the areas of the state that are at high risk for wildfires in order to have access to the reinsurance program (Sec. 1).

• Specifies that funding for the reinsurance program will come from the following (Sec. 1):

• Revenue bonds secured by the reinsurance enterprise;

• The homeowner’s insurance fee detailed in this Section; and

• Investments from the revenue from revenue bonds and insurer fees.

• Requires insurers participating in the reinsurance program to submit one set of rates taking into consideration the reinsurance program and one set without (Sec. 1).

Full Bill Text