House Committee on Local Government (02/08/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Date:	02/08/2012	ATTENDANCE

Time:	12:21 PM to 01:59 PM	Conti	*
		Fields	*
Place:	HCR 0111	Gardner B.	*
		Kerr J.	X
This Meeting was called to order by		Labuda	X
	Representative Szabo	Pabon	X
		Pace	X
This Report was prepared by		Soper	X
	Raegan Robb	Swerdfeger	X
		Balmer	X
		Szabo	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB12-1057		Postponed Indefinitely

12:22 PM

Representative Szabo, committee chair, called the meeting to order.

12:25 PM -- House Bill 12-1057

Representative Levy, prime sponsor, presented House Bill 12-1057, concerning additional protections for purchasers of homeowner's insurance policies in Colorado. Representative Levy explained that the bill requires the Commissioner of Insurance, under the Department of Regulatory Agencies (DORA), to adopt rules related to homeowner's insurance. She talked about the large number of homes that were destroyed in August 2010, by the Fourmile Canyon Fire in Boulder County, and explained the need for additional requirements on homeowner's insurance policies. Representative Levy explained that the bill would require insurers to provide at least 24 months of coverage for additional living expenses, and also provide policy holders with a copy of their policy within 48 hours of a loss or when a request is made by the policyholder.

Representative Levy addressed questions from the committee concerning the value of homes damaged during the Fourmile Canyon Fire, the requirements placed on insurance companies and insurance agents under the bill, and distributed e-mails from her constituents supporting of House Bill 12-1057 (Attachment A). Committee discussion ensued concerning home appraisals and insurance policies covering a home's contents. In the case of a total loss of a home, the bill requires an insurer to offer a policyholder a settlement of no less than 80 percent of the listed value of the contents if the policyholder cannot provide a detailed inventory of the contents.

12:45 PM

Edward Dawson, representing himself, testified in support of the bill, discussed the loss of his home and its contents during the Fourmile Canyon Fire. Mr. Dawson explained his home insurance policy and talked about negotiations with his insurance company in order to have the hazardous debris removed from his property after the fire. He talked about the need for home insurance policies to be more uniform and entered his comments for the record (Attachment B).

12:54 PM

Robert Vermillion, representing himself, testified in support of the bill and talked about the need for insurance companies to provide annual notices concerning a home's value in order to prevent policy holders from being underinsured. Mr. Vermillion distributed a letter he wrote to the Boulder Daily Camera concerning the challenges faced by homeowners who lost their homes in the Fourmile Canyon Fire (Attachment C).

12:56 PM

Jane Sanders, representing herself, testified in support of the bill and talked about several problems she encountered with her home insurance replacement policy after losing her home in the Fourmile Canyon Fire. Ms. Sanders explained that her home was underinsured and talked about the need to estimate the replacement costs of a home from local construction costs. She discussed her support for the provisions in the bill for at least 24 months of coverage for additional living expenses. Ms. Sanders addressed questions from the committee concerning her difficulties working with her insurance company and with DORA to receive the replacement value for her home. Discussion ensued among Ms. Sanders, Representative Levy, and the committee concerning insurance and construction problems encountered by homeowners who are trying to rebuild their homes in Fourmile Canyon.

01:19 PM

Howard Wishner, representing himself, testified in support of the bill, talked about losing his home in the Fourmile Canyon Fire, and distributed his comments to the committee (Attachment D). Mr. Wishner discussed the need for insurance companies to provide a policyholder with a copy of their homeowners' insurance policy within 48 hours of a loss or at the request of the policyholder. He addressed questions from the committee concerning the challenges he faced with his insurance company in order to receive the replacement value of his home.

01:26 PM

Carol Leyner, representing herself, testified in support of the bill and talked about problems with her homeowner's insurance policy related to the replacement of her home from the Fourmile Canyon Fire. Ms. Leyner addressed questions from the committee concerning her personal experience with her insurance company and talked about the need for the changes under House Bill 12-1057.

01:35 PM

Amy Hardy, representing herself, testified in support of the bill, talked about her personal struggle of losing her home in the Fourmile Canyon Fire, and discussed the need for the changes under House Bill 12-1057.

01:41 PM

Kelly Campbell, President, representing Property Casualty Insurers, testified against the bill, discussed how replacement costs under a homeowner's policy are established, and explained that the current law guiding replacement costs of a home are sufficient. Ms. Campbell addressed questions from the committee concerning why insurance companies may limit the amount of insurance that is available to homeowners.

01:45 PM

Representative Levy entered closing comments on the bill and responded to questions from the committee concerning the provisions of House Bill 12-1057.


BILL:	HB12-1057
TIME:	01:49:51 PM
MOVED:	Labuda
MOTION:	Moved amendment L.003 (Attachment E). The motion passed without objection.
SECONDED:	Pabon
		VOTE
	Conti
	Fields
	Gardner B.
	Kerr J.
	Labuda
	Pabon
	Pace
	Soper
	Swerdfeger
	Balmer
	Szabo

YES: 0 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB12-1057
TIME:	01:55:18 PM
MOVED:	Labuda
MOTION:	Moved amendment L.002 (Attachment F). The motion passed without objection.
SECONDED:	Pabon
		VOTE
	Conti
	Fields
	Gardner B.
	Kerr J.
	Labuda
	Pabon
	Pace
	Soper
	Swerdfeger
	Balmer
	Szabo

YES: 0 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB12-1057
TIME:	01:55:38 PM
MOVED:	Fields
MOTION:	Moved to refer House Bill 12-1057, as amended, to the Committee on State, Veterans, and Military Affairs. The motion failed on a vote of 5-6.
SECONDED:	Pabon
		VOTE
	Conti	No
	Fields	Yes
	Gardner B.	No
	Kerr J.	No
	Labuda	Yes
	Pabon	Yes
	Pace	Yes
	Soper	Yes
	Swerdfeger	No
	Balmer	No
	Szabo	No

YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	HB12-1057
TIME:	01:58:21 PM
MOVED:	Balmer
MOTION:	Moved to postpone House Bill 12-1057 indefinitely. The motion passed on a vote of 6-5.
SECONDED:	Gardner B.
		VOTE
	Conti	Yes
	Fields	No
	Gardner B.	Yes
	Kerr J.	Yes
	Labuda	No
	Pabon	No
	Pace	No
	Soper	No
	Swerdfeger	Yes
	Balmer	Yes
	Szabo	Yes

Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:59 PM

The committee chair, Representative Szabo, laid over House Bill 12-1056 and House Bill 12-1157.

01:59 PM

The committee adjourned.