(1) As used in this section, unless the context otherwise requires: (a) "Admitted insurance" means any property and casualty insurance written by an insurer that holds a certificate of authority to conduct the business of insurance in Colorado. (b) "Association" means a unit owners' association of a common interest community, as defined in section 38-33.3-103 (3). (c) "Captive insurance company" has the meaning set forth in section 10-6-103 (2). (d) "Common interest community" has the meaning set forth in section 38-33.3-103 (8). (e) "Condominium unit" has the meaning set forth in section 38-33-103 (1). (f) "Nonadmitted insurance" has the meaning set forth in section 10-5-101.2 (10). (g) "Owner of lodging facilities" or "owner" means a person that possesses an ownership interest in: (I) A hotel, as defined in section 44-3-103 (21); or (II) A lodging facility. (2) The commissioner shall conduct a study of the market for admitted insurance policies issued by insurers to associations and to owners of lodging facilities. To the extent practicable, the study must include consideration of: (a) Current market conditions, including: (I) The availability of coverage, as differentiated by county or zip code, in the markets for admitted insurance and nonadmittted insurance and through self-insured mechanisms, including captive insurance companies; (II) The affordability of coverage, as differentiated by property value and by county or zip code; and (III) Identification of areas of Colorado with particular availability concerns; (b) Recommendations regarding potential measures and programs to ensure the long- term sustainability and availability of property and casualty insurance policies issued to associations and owners; (c) Whether any captive insurance companies have been formed by an association or an owner; and (d) Whether the formation of a captive insurance company by an association or an owner could impact current market conditions. (3) (a) The commissioner may contract with a third party to conduct the study required in subsection (2) of this section. The commissioner is not required to comply with the "Procurement Code", articles 101 to 112 of title 24, for purposes of this subsection (3); except that the commissioner shall use a competitive process pursuant to the "Procurement Code" to select a third party to conduct the study. (b) The commissioner and any third party conducting the study shall engage with and seek input from insurers, consumer groups, and other interested parties. (4) As part of the study, the commissioner may collect data from each insurer in the markets for admitted insurance and nonadmitted insurance, including: (a) The number and location of each association and owner in Colorado for which the insurer provides coverage through a property and casualty insurance policy; (b) The criteria used by the insurer to underwrite property and casualty insurance policies issued to associations and owners; (c) Combined loss and expense ratios incurred by the insurer from issuing property and casualty insurance policies to associations and owners; and (d) Any other data the commissioner identifies as relevant to evaluating current market conditions and developing proposed availability and affordability solutions. (5) Information submitted by an insurer pursuant to subsection (4) of this section is subject to public inspection only to the extent allowed under the "Colorado Open Records Act", part 2 of article 72 of title 24. The division and any third-party contractor shall not disclose trade secrets or confidential or proprietary information to any person that is not authorized to access the information. (6) The commissioner shall prepare a report summarizing the results of the study required by this section. On or before January 1, 2026, the commissioner shall submit the report to the joint budget committee, to the business affairs and labor committee of the house of representatives, and to the business, labor, and technology committee of the senate, or any successor committees. To the extent feasible, the commissioner may collect data concerning self-insured mechanisms, including captive insurance companies, and include such information in the report. (7) This section is repealed, effective July 1, 2026.
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