Colorado Legislative Council Staff


Drafting Number:

Prime Sponsor(s):

LLS 98-268

Sen. Powers

Rep. T. Williams


Bill Status:

Fiscal Analyst:

November 18, 1997

Senate HEWI

Will Meyer (866-4976)



Summary of Assessment

            The provisions of this bill would make changes to the Motor Vehicle (“No Fault”) Insurance statutes. It would require insurers to disclose information concerning managed care arrangements to persons making initial applications for motor vehicle insurance coverage. The bill mandates that insurers disclose that motor vehicle insurance policies in Colorado may include optional managed care arrangements including Health Maintenance Organizations and Preferred Provider Organizations and whether the insurer offers a managed care option. Insurers are directed to explain what managed care is, and how it affects the consumer. If an insurer offers a managed care option, the insurer must disclose that potential cost savings may be obtained from choosing managed care.

            The bill requires that disclosure forms for managed care arrangements state that insurance policies with a managed care option may be accepted or rejected by the insured, at a minimum, on each policy anniversary period or renewal date. The forms must also state that obtaining or renewing the policy is not dependent upon accepting a managed care option, and must disclose the approximate cost savings from using the managed care option.

            These changes would require the Division of Insurance to make an amendment to a current regulation. This would have a minimal impact on the workload of the division. This increase in workload could be absorbed by current staff, but may require re-prioritizing existing workload. This bill would not impact any other agency of the state, or unit of local government. Therefore, this bill is assessed as having no fiscal impact.

            The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.

Departments Contacted

            Regulatory Agencies