Col. Auto Choice Bill Passes One Committee,

March 18, 2002

The House Business Affairs and Labor Committee approved March 14 House Bill 1351, giving consumers the option of remaining under Colorado’s no-fault auto insurance law or returning to the traditional tort system. The bill then was referred to the House Appropriations Committee.

“Colorado’s no-fault system is broken and it needs to be fixed,” Michael Harrold, National Association of Independent Insurers (NAII) northwest regional manager, who joined representatives from State Farm and Farmers in testifying in support of the proposed legislation, said. “Auto insurance premiums in Colorado have been 12th and 13th highest in the nation in recent years. HB 1351 should help remedy that situation.”

In other legislative actions:

The Senate Business, Labor and Finance Committee amended and sent to the Senate Public Policy and Planning Committee HB 1135, which would convert Pinnacol, the state’s workers’ compensation fund, to a modified domestic mutual insurance company. Language drafted by the NAII that prohibits Pinnacol from acquiring or controlling any other insurer, providing any other type of insurance than workers’ compensation insurance, or providing insurance to employers that are not Colorado employers was amended onto the bill by the committee.

The House State Affairs Committee killed Senate Bill 91, which would have required personal injury protection (PIP) payments under the state’s no-fault auto insurance law to also include living expenses for individuals in rehabilitation programs.

The Senate Judiciary Committee approved HB 1305, which would apply existing medical fraud standards to PIP payments under no-fault.

Legislative action was completed on HB 1106, which modifies the “dead man’s rule” regarding the admissibility of prior testimony.

Also on the way to the governor is HB 1005, which prohibits an insurer from denying insurance to an individual whose driver’s license has been suspended due to non-compliance with a child support order.

Topics Auto Colorado

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