ColoradoInsurers must revise factors for qualifying closed workers’ compensation claims
Starting January 1, 2027, insurers must seek qualifying factor revisions for closed claims, with credits for resulting premium changes; a referendum petition could make voter approval necessary.
What it does
For a qualifying closed claim, the insurer must ask the rating organization to revise the employer’s factor using the amount actually paid, if that lower amount meets the required threshold.
If the revised factor changes the premium, the insurer must credit the employer for that change during the policy period.
Argument forUsing the amount actually paid for a closed claim could lower an eligible employer’s factor and lead to a premium credit during the policy period.
Argument againstEmployers whose lower closed-claim amount changes the factor by less than 0.05 and does not bring it to 1.0 or below may not qualify for a recalculation.
More detail
After notice from an employer or licensed insurance producer, the insurer must ask the authorized rating organization to revise the employer’s factor using the amount actually paid for a closed claim. The rule covers employers insured for workers’ compensation by an insurer authorized to do business in Colorado, including Pinnacol Assurance. The claim must have been reported as open with a higher amount than the amount after it closed. The lower amount must reduce the factor by at least 0.05, or move it from above 1.0 to 1.0 or below. The employer or producer must notify the insurer between the claim’s report to a rating bureau and 31 days after the employer’s rating effective date. The rating organization must revise the factor within 30 days after notice from the insurer. The rule applies to claims closed on or after the law’s effective date.
The insurer must credit the employer for any premium change calculated from the revised factor. This applies when an employer’s factor is revised under this section. The credit must be applied within the employer’s policy period.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 2Governor Jared Polis SignedBecame Law
- May 21Signed by the President of the SenateMajor
- May 21Signed by the Speaker of the HouseMajor
- May 21Sent to the GovernorTo Governor
- May 9House Third Reading Passed - No AmendmentsPassed House
- Vote recorded BILL. Result: pass.Lower
- May 8House Third Reading Laid Over Daily - No Amendments
- May 7House Second Reading Special Order - Passed - No Amendments
- May 6House Committee on Business Affairs & Labor Refer Unamended to House Committee of the WholeMinor
- Vote recorded Refer Senate Bill 26-175 to the Committee of the Whole. Result: pass.Upper
- Vote recorded Refer Senate Bill 26-175 to the Committee of the Whole. Result: pass.Lower
- May 4Senate Third Reading Passed - No AmendmentsPassed Senate
- Vote recorded BILL. Result: pass.Upper
- May 4Introduced In House - Assigned to Business Affairs & LaborMinor
- May 1Senate Second Reading Special Order - Passed - No Amendments
- Apr 30Senate Committee on Business, Labor, & Technology Refer Unamended - Consent Calendar to Senate Committee of the WholeMinor
- Vote recorded Refer Senate Bill 26-175 to the Committee of the Whole and with a recommendation that it be placed on the consent calendar. Result: pass.Upper
- Apr 21Introduced In Senate - Assigned to Business, Labor, & TechnologyIntroduced
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