HOUSE Amended 2nd Reading February 10, 2006Second Regular Session Sixty-fifth General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO. 06-0192.01 Christy Chase HOUSE BILL 06-1036 HOUSE SPONSORSHIP Carroll M., and Coleman SENATE SPONSORSHIP Tochtrop, House Committees Senate Committees Business Affairs and Labor A BILL FOR AN ACT Concerning the requirement that automobile insurance carriers offer medical payments coverage in connection with an automobile insurance policy issued in Colorado. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Interim Committee on Auto Insurance. Prohibits an automobile insurance policy from being delivered or issued for delivery in Colorado without containing a minimum amount of coverage for medical payments for bodily injury, sickness, or disease resulting from the ownership, maintenance, or use of the motor vehicle. Allows the named insured to reject medical payments coverage in writing after the insurer discloses specified information to the insured and the insured acknowledges understanding of the disclosures in writing. Presumes a minimum amount of medical payments coverage exists if the insurer fails to offer medical payments coverage or make the required disclosures to the insured or is unable to produce proof that the named insured rejected medical payments coverage in writing. Adds the following to the list of disclosures required to be made to the insured:  That if the insured declines medical payments coverage and the insured is not at fault in the accident, the insurer of the at-fault driver will not have to pay or reimburse the insured or passengers in the insured's motor vehicle for medical expenses incurred as a result of the accident until the claim is closed;  That if the insured declines medical payments coverage and is relying on health insurance coverage as a substitute, the insured will be responsible for copayments, deductibles, limitations on treatment, and exclusions under the health insurance policy, and the insured should consult his or her health insurance carrier for coverage information; and  If the insured declines medical payments coverage, passengers in the covered motor vehicle may not be covered for bodily injury resulting from an accident if the insured driver is at fault in the accident. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. 10-4-635 (1), Colorado Revised Statutes, is amended to read: 10-4-635. Medical payments coverage - disclosure. (1) If an insurer makes available medical payments coverage in conjunction with the coverage required pursuant to section 10-4-620, such medical payments coverage shall provide for benefits of five thousand dollars, as well as any other benefit deemed appropriate by the insurer. Except as otherwise provided in this subsection (1), no automobile liability or motor vehicle liability policy insuring against loss resulting from liability imposed by law for bodily injury or death suffered by any person arising out of the ownership, maintenance, or use of a motor vehicle shall be delivered or issued for delivery in this state unless coverage is provided in the policy or in a supplemental policy for medically necessary medical payments for bodily injury, sickness, or disease arising out of the ownership, maintenance, or use of the motor vehicle. The medical payments coverage shall apply in an automobile liability or motor vehicle liability policy issued or renewed on or after January 1, 2007, unless the named insured has received the disclosures required by subsection (2) of this section, acknowledges his or her understanding of the disclosures, and rejects medical payments coverage. The insured's acknowledgment of understanding of the disclosures and rejection of medical payments coverage shall be evidenced in writing or other objectively verifiable record, which may include, without limitation, an audio recording of a telephone conversation. If the insurer fails to offer medical payments coverage, fails to comply with the disclosure requirements of subsection (2) of this section, or fails to maintain or provide proof that the named insured rejected medical payments coverage in a form required by this subsection (1), the insured's policy shall be presumed to include medical payments coverage with benefits of five thousand dollars. An insurer shall maintain proof that a named insured rejected medical payments coverage for at least three years after the date the named insured rejected the coverage. Nothing in this section shall be construed to limit any other coverage amounts being made available by an insurer. SECTION 2. 10-4-635 (2) (b) (II) and (2) (b) (IV), Colorado Revised Statutes, are amended, and the said 10-4-635 (2) (b) is further amended BY THE ADDITION OF THE FOLLOWING NEW SUBPARAGRAPHS, to read: 10-4-635. Medical payments coverage - disclosure. (2) (b) Every insurer issuing automobile insurance policies that include medical payments coverage shall include in the summary disclosure form required by section 10-4-111 a disclosure specifying that: (II) If the insured purchases medical payments coverage and also has health insurance coverage, the medical payments coverage is primary to any the health insurance coverage available to an the insured when injured in an automobile accident and will provide coverage before the health insurance coverage; (IV) An If the insured who declines medical payments coverage and is injured in an automobile accident that is the fault of the insured, the insured will not receive benefits from medical payments coverage for any medical expenses incurred as a result of an the accident; that is the fault of the insured unless medical payments coverage is purchased. (V) If the insured declines medical payments coverage and the insured is not at fault in the accident, the insurer of the at-fault driver will not have to pay or reimburse the insured or passengers in the insured's motor vehicle for medical expenses incurred as a result of the accident until the claim is closed as part of a settlement, verdict, or other method of final closure of the claim; (VI) If the insured declines medical payments coverage and is relying on health insurance coverage as a substitute, the insured will be responsible for copayments, deductibles, limitations on treatment, and exclusions under the health insurance policy, and the insured should consult his or her health insurance carrier for coverage information; and (VII) If the insured declines medical payments coverage and is at fault in an automobile accident, a passenger in the insured's motor vehicle will not be reimbursed under the insured's automobile liability or motor vehicle liability policy covering the motor vehicle for any medical expenses incurred by the passenger until the claim is closed as part of a settlement, verdict, or other method of final closure of the claim. SECTION 3. Effective date - applicability. This act shall take effect January 1, 2007, and shall apply to automobile insurance policies issued or renewed on or after said date. SECTION 4. 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.