Bill Summary for Bill Number SB10-076

Date: 04/29/2010

Final
BILL SUMMARY for SB10-076

HOUSE COMMITTEE ON JUDICIARY

Votes: View-->	Action Taken:
Adopt prepared amendment L.005 (Attachment T). Th Adopt prepared amendment L.007 (Attachment S). Th Refer Senate Bill 10-76, as amended, to the Commit	Pass Without Objection FAIL PASS

05:34 PM -- Senate Bill 10-076

Representative Levy announced a brief recess.

05:43 PM

Representative Levy called the committee back to order.

Representative Primavera, sponsor, presented Senate Bill 10-076 concerning unreasonable insurance claims settlement practices. The reengrossed bill prohibits an insurance company from providing a financial incentive to a person for the purpose of influencing that person's decision to deny or delay a claim, or to cancel or rescind an insurance policy. In civil actions on claim denials, the court may instruct the jury that such financial incentives are prohibited.

05:48 PM -- Paula Van Dusen, representing herself, spoke in support of the bill. Ms. Van Dusen related details of her personal experience with the cancellation of an insurance policy.

05:50 PM -- Vicki Rottman, representing herself, spoke in support of the bill. Ms. Rottman related details of her personal experience with insurance claims practices she believes were unreasonable. She distributed her written testimony to the committee (Attachment R).

05:55 PM -- Colleen McMahon, representing herself, spoke in support of the bill. Ms. McMahon discussed her experience with a catastrophic automobile accident. She spoke at length about her dissatisfaction with the way she was treated by her insurance company.

06:08 PM -- Kelly Campbell, Property and Casualty Insurance Association, spoke in opposition to the bill. Ms. Campbell denied that the practice addressed by the bill currently takes place within the insurance industry. She stated that current law adequately addresses any unreasonable practices. She expressed concern about the broadness of the scope of the bill, which could lead to unintentional consequences. Ms. Campbell discussed the process of claims settlement.

06:13 PM -- Robert Ferm, representing the American Insurance Association and Met Life, spoke in opposition to the bill. Mr. Ferm discussed prepared amendment L.007 (Attachment S) and the appropriateness of outsourcing.

06:18 PM -- Debby Magures, Pinnacol Assurance, spoke in opposition to the bill. Ms. Magures denied that the practice addressed by the bill takes place at Pinnacol. She discussed an incentive program in place at Pinnacol that is not tied to the denial or delay of claims.

06:25 PM -- Robert Rosenthal, Colorado Land Title Association, spoke in opposition to the bill.

06:27 PM -- Amy Crain-Chadwick, Allied Nationwide Insurance Company, spoke in opposition to the bill. Ms. Crain-Chadwick is a casualty claims specialist. She discussed her role as a claims investigator. She stressed that her goal is always to find coverage for a client to make him or her whole. Ms. Crain-Chadwick responded to questions from the committee.

06:36 PM -- Ben Price and Marc Reece, representing the Colorado Association of Health Plans, spoke in opposition to the bill. Mr. Reece discussed prepared amendment L.005 (Attachment T), which addresses jury instructions and discovery.

06:41 PM -- Nanci Valdez, Farmers Insurance, spoke in opposition to the bill. Ms. Valdez denied that the practice addressed by the bill takes place at Farmers. She discussed the evaluation process for claims adjusters at Farmers. Ms. Valdez responded to questions from the committee.

06:45 PM -- Tara Reilly, State Farm, spoke in opposition to the bill. Ms. Reilly spoke about the cost of fraud. She stated that State Farm does not oppose amendment L.005. She responded to questions from the committee.

06:55 PM -- Craig Sellers, Pie Forensic Consultants, testified that he did not know of any instances in which insurance company personnel were compensated for denying claims. He stated that the bill might lead to claims being paid without merit. He responded to questions from Representative Levy regarding obligations to thoroughly investigate claims.

07:00 PM -- Dr. Rochelle Cohen, Health Care for All Colorado, spoke in support of the bill. Dr. Cohen is a provider and consumer of health care insurance. She advocates comprehensive health care reform for the benefit of all Coloradans. She discussed her experience arguing with insurance providers on behalf of her patients and stated her opinion that such time spent is not productive or useful for the provider, the physician, or the patient. Dr. Cohen responded to questions from the committee about the role of a physician in the claims settlement process.

07:06 PM -- Dana Dzwonkowski, American Cancer Society, spoke in support of the bill. Ms. Dzwonkowski discussed specific instances of the unreasonable practices addressed by the bill.

07:10 PM -- Charlie Hebeler, Colorado Dental Association, spoke in support of the bill with amendment L.007. Ms. Hebeler talked about the need for the amendment, which requires that any determination that a covered benefit is not medically necessary, appropriate, effective, or efficient be made by an appropriate health care provider licensed in the United States. The committee discussed the amendment.

07:19 PM -- Melissa Collins, Colorado Chiropractic Association, spoke in support of the bill. Ms. Collins stressed that nothing in the bill prohibits the denial of claims for proper reasons. She discussed the fact that the practice addressed by the bill is not covered under current bad faith law. She expressed her opinion that the bill will not result in burdensome litigation. Ms. Collins testified that 16 other states have enacted this type of legislation. She responded to questions from the committee.


BILL:	SB10-076
TIME:	07:26:06 PM
MOVED:	Miklosi
MOTION:	Adopt prepared amendment L.005 (Attachment T). The motion passed without objection.
SECONDED:	Court
		VOTE
	Court
	Gardner B.
	Kagan
	King S.
	Miklosi
	Nikkel
	Pace
	Ryden
	Waller
	McCann
	Levy

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB10-076
TIME:	07:26:53 PM
MOVED:	Miklosi
MOTION:	Adopt prepared amendment L.007 (Attachment S). The motion failed on a vote of 4-7.
SECONDED:	Kagan
		VOTE
	Court	No
	Gardner B.	No
	Kagan	Yes
	King S.	No
	Miklosi	Yes
	Nikkel	No
	Pace	Yes
	Ryden	Yes
	Waller	No
	McCann	No
	Levy	No

Not Final YES: 4 NO: 7 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB10-076
TIME:	07:28:43 PM
MOVED:	Court
MOTION:	Refer Senate Bill 10-76, as amended, to the Committee of the Whole with a favorable recommendation. Members of the committee commented about the bill. The motion passed on a vote of 7-4.
SECONDED:	Kagan
		VOTE
	Court	Yes
	Gardner B.	No
	Kagan	Yes
	King S.	No
	Miklosi	Yes
	Nikkel	Yes
	Pace	Yes
	Ryden	Yes
	Waller	No
	McCann	No
	Levy	Yes

Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS