NOTE:  This bill has been prepared for the signature of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
      history, or the Session Laws.
      
      
      SENATE BILL 10-076
      
      
      BY SENATOR(S) Carroll M., Boyd;
      also REPRESENTATIVE(S) Primavera, Apuan, Fischer, Frangas,
      Hullinghorst, Labuda, Levy, Merrifield, Pommer, Ryden, Solano, Todd.
      
      
      Concerning unreasonable insurance claims settlement practices.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  10-3-1104 (1), Colorado Revised Statutes, is amended
      BY THE ADDITION OF A NEW PARAGRAPH to read:
      
           10-3-1104.  Unfair methods of competition and unfair or
      deceptive acts or practices.  (1)  The following are defined as unfair
      methods of competition and unfair or deceptive acts or practices in the
      business of insurance:
      
           (hh)  Unfair compensation practices:  Basing the
      compensation of claims employees or contracted claims
      personnel, including compensation in the form of performance
      bonuses or incentives, on any of the following:
      
           (I)  The number of policies canceled;
      
           (II)  The number of times coverage is denied;
      
           (III)  The use of a quota limiting or restricting the number or
      volume of claims; or
      
           (IV)  The use of an arbitrary quota or cap limiting or
      restricting the amount of claims payments without due
      consideration of the merits of the claim.
      
           SECTION 2.  Safety clause.  The general assembly hereby finds,
      determines, and declares that this act is necessary for the immediate
      preservation of the public peace, health, and safety.
      
      
      
      
      ____________________________  ____________________________
      Brandon C. Shaffer                Terrance D. Carroll
      PRESIDENT OF                     SPEAKER OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
      
      
      ____________________________  ____________________________
      Karen Goldman                          Marilyn Eddins
      SECRETARY OF                 CHIEF CLERK OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    Bill Ritter, Jr.
                                    GOVERNOR OF THE STATE OF COLORADO