Bill Summary for Bill Number SB05-070

Final
BILL SUMMARY for SB05-070

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes:

Action Taken:

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02:33 PM -- Senate Bill 05-070

Representative Paccione presented the bill which prohibits an automobile insurer from determining rates or coverage based on the consumer's failure to maintain coverage when the consumer was on active duty in the United States military. The Division of Insurance implemented this provision in departmental regulations in 2004. The bill puts the provision in statute.

02:36 PM -- Doug Dean, Insurance Commissioner, made himself available for questions. Mr. Dean responded to questions from the committee.

02:43 PM -- Peg Brown, representing the Colorado Association of Health Plans, responded to questions from the committee regarding the possibility of extending this provision to health insurance. Ms. Brown does not believe that health plans make a rate determination based on the consumer's failure to maintain coverage when the consumer was on active duty in the United States military.

02:45 PM -- Jim Snook, representing himself as professional with auto insurance experience, testified that auto insurers made the decision to determine rates based on a consumer allowing the coverage to lapse because the insurers felt that such action on the part of a consumer demonstrated that the consumer may be a greater insurance risk. Mr. Snook responded to questions from the committee. Mr. Snook testified regarding extending this to apply to health insurance. Mr. Snook believes that the situation is different because a person's health can deteriorate while they are on active duty in the military.

02:57 PM

Representative Cerbo announced that he will take the bill off the table. This hearing will be for witness testimony only. The committee will take action on the bill at its meeting on Wednesday, March 9, upon adjournment.