SB 25-058: Insurance Rebate Reform Model Act - Colorado

Revised (03/31/2025) → PA1 (02/27/2025) · 4 edits

MODERATE

The bill was amended to include new provisions allowing insurers to offer additional services beyond traditional rebates, such as health enhancement, financial wellness education, post-loss services, and behavioral change programs. The amendments also add requirements for reasonable cost comparisons to premiums and mandate provision of customer contact information for service-related questions.

Scope change

Expanded the scope of permitted insurance rebates and services to include wellness, financial planning, and post-loss support services.

SCOPE

Added new permitted services including health enhancement, financial wellness education, post-loss services, behavioral change programs, and employee benefit administration assistance.

REQUIREMENT

Added requirement that service costs must be reasonable compared to customer premiums or insurance coverage.

Added requirement for insurers to provide customers with contact information to assist with questions about offered products or services.

ENFORCEMENT

Added authority for the Commissioner to adopt rules regarding consumer data protection, privacy, disclosure, and unfair discrimination.

Rerevised (04/01/2025) → Revised (03/31/2025) · 5 edits

MODERATE

The bill text was revised to add specific objectives related to loss mitigation, claim cost reduction, liability risk education, and risk monitoring. These additions clarify the bill's purpose by explicitly stating it aims to provide loss control, reduce claim costs, educate individuals about liability risks, and develop strategies to eliminate or reduce risk.

Scope change

The scope of the bill was expanded by adding four new specific objectives (A through D) that define what the legislation aims to achieve regarding insurance coverage and risk management.

SCOPE

Added objective (A) to provide loss mitigation or loss control measures.

Added objective (B) to reduce claim costs or claim settlement costs.

Added objective (C) to provide education about liability risk or risk of loss to individuals or property.

Added objective (D) to monitor or assess risk, identify sources of risk, or develop strategies for eliminating or reducing risk.

TECHNICAL

Removed the '3rd Reading Unamended' status line and updated the revision date header from 'Rerevised' to 'Revised' with updated amendment language.

PA2 (03/21/2025) → Rerevised (04/01/2025) · 5 edits

MODERATE

The bill was revised to incorporate all amendments adopted in the Second House, updating the official version status and adding committee information. Substantive content regarding insurance rebates and consumer protections remains unchanged in this revision.

TECHNICAL

Header text changed from 'PREAMENDED' to 'REREVISED' to reflect that all amendments have been adopted.

Added '3rd Reading Unamended' status and date (April 1, 2025) for the House.

Added 'Amended 2nd Reading' status and date (March 31, 2025) for the House.

Added additional House sponsors (Gonzalez R., Bacon, Brown, Clifford, Duran, Hamrick, Keltie, Marshall) to the House sponsorship list.

Removed lines 26-12 which contained specific criteria for insurance coverage (loss mitigation, risk reduction, health enhancement, etc.).

Final Act (04/08/2025) → PA2 (03/21/2025) · 5 edits

MODERATE

The bill was reformatted to include proper session headers and committee information, while the substantive legal text regarding insurance rebates and gifts remained largely unchanged. The formatting changes add official session details and clarify that this is an unofficial version with committee amendments not yet adopted.

Scope change

No substantive changes to the bill's scope or applicability; changes are primarily formatting and structural additions of session information.

TECHNICAL

Added official session headers including First Regular Session, Seventy-fifth General Assembly, and State of Colorado designation

Included committee assignments for Senate (Health & Human Services) and House (Business Affairs & Labor)

Added bill summary section explaining the Model Rebate Reform Act provisions

Removed preliminary notes about bill signatures and legislative status

Reorganized bill text with line numbers and page markers for legislative processing

Signed Act (04/18/2025) → Final Act (04/08/2025) · 6 edits

MODERATE

This bill establishes a legal framework allowing insurance companies to offer rebates to customers under specific consumer protection conditions. The changes add new definitions and requirements for rebate programs, pilot testing procedures, and gift offerings to ensure fairness and prevent discrimination.

Scope change

The bill expands regulatory authority by adding new subsections to Colorado Revised Statutes 10-3-1104, creating specific rules for insurance rebate programs and value-added offerings.

REQUIREMENT

Added new subsections (2.2) through (2.7) requiring insurers to provide contact information for rebate-related questions and establish documented, objective criteria for rebate eligibility.

Added pilot program requirements allowing insurers to test rebate offerings for up to one year with prior Division approval.

Added restrictions on offering non-cash gifts, items, or services, requiring costs to be reasonable compared to premiums and not included in charges to others.

Added prohibition on using words like 'free' or 'no cost' in advertisements related to insurance offerings.

ENFORCEMENT

Added authority for the Commissioner to adopt rules implementing and enforcing the new rebate provisions.

DEFINITION

Modified the definition of 'customer' to include policyholders, potential policyholders, certificate holders, potential certificate holders, insureds, potential insureds, or applicants.

Reengrossed (03/04/2025) → Signed Act (04/18/2025) · 6 edits · Apr 18, 2025

MODERATE

This bill modernizes Colorado's insurance rebate laws by creating a new framework that allows insurers to offer value-added products and services as incentives, provided they meet specific criteria. The changes expand what insurers can offer beyond traditional cash rebates while maintaining consumer protections against unfair discrimination. Key additions include detailed requirements for pilot programs, reasonable cost comparisons, and clear definitions of what constitutes acceptable inducements.

Scope change

The bill's scope expanded from a general prohibition on rebates to a structured framework permitting specific types of value-added offerings, including loss mitigation services, health enhancements, and financial wellness tools, subject to regulatory oversight.

ELIGIBILITY

New provisions allow insurers to offer value-added products or services at no or reduced cost if they relate to insurance coverage and aim to reduce claims costs, provide education, monitor risk, enhance health, or promote financial wellness.

REQUIREMENT

Insurers must ensure the cost of offered products or services is reasonable compared to premiums and must provide customers with contact information for questions about these offerings.

Older, less specific language regarding gift limits and raffle permissions was replaced with more detailed criteria for acceptable inducements.

Restrictions on using words like 'free' or 'no cost' in advertisements were added to prevent misleading consumers.

ENFORCEMENT

The insurance commissioner gains authority to adopt rules implementing these provisions, including oversight of pilot programs that can run for up to one year with prior approval.

DEFINITION

New definitions clarify that 'customer' includes potential policyholders and applicants, and 'insurance producer' follows existing statutory meaning.

Engrossed (03/03/2025) → Reengrossed (03/04/2025) · 3 edits · Mar 4, 2025

MINOR

The bill was reengrossed with minor administrative updates including additional Senate sponsors and a new placeholder summary section for the 3rd Reading. Substantive policy content remains unchanged at this stage, with the main text modifications being formatting adjustments and the removal of a specific subsection regarding insurance cost comparability that was likely part of a previous amendment.

Scope change

No substantive change to the bill's scope or applicability; only administrative updates to sponsorship and summary sections.

TECHNICAL

Added additional Senate sponsors (Michaelson and Jenet Mullica) to the bill's sponsorship list.

Inserted a new placeholder section for the 3rd Reading Unamended bill summary dated March 4, 2025.

Removed subsection (2.1) and (2.2) regarding insurance cost comparability requirements, which appears to have been part of a previous amendment that was not carried forward to this reengrossed version.

Introduced (01/21/2025) → Engrossed (03/03/2025) · 5 edits · Mar 4, 2025

MODERATE

The bill was amended to modernize Colorado's insurance rebate laws by updating the legal framework to recognize new insurance products while maintaining consumer protections. The changes shift the statutory structure from creating a new part to amending existing unfair practices provisions, and significantly expand permissible value-added services offered by insurers.

Scope change

The bill's scope changed from establishing a new Part 18 in Title 10 to amending existing sections within Title 10, specifically sections 10-3-1104 and 10-3-1806, to incorporate updated definitions and practices.

STRUCTURE

Changed the bill's approach from adding a new Part 18 to amending existing sections 10-3-1104 and 10-3-1806 within Title 10.

DEFINITION

Updated the definition of unfair rebate practices to clarify exceptions for permissible gifts and value-added services.

REQUIREMENT

Expanded the list of permissible value-added services to include loss mitigation, risk assessment, health enhancement, financial wellness services, post-loss support, and employee benefit administration.

Added cost reasonableness requirements for value-added services, ensuring costs remain reasonable compared to premiums or coverage.

Added specific criteria for value-added services, requiring them to relate to insurance coverage and achieve specific goals like loss control or risk reduction.

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