Colorado Legislative Council Staff

NO FISCAL IMPACT

TITLE:            CONCERNING ELIMINATION OF THE REQUIREMENT THAT MOTOR VEHICLE INSURANCE POLICIES INCLUDE WAGE LOSS REPLACEMENT COVERAGE, AND IN CONNECTION THEREWITH, REQUIRING INSURERS TO PROVIDE OPTIONAL WAGE LOSS REPLACEMENT COVERAGE.

Summary of Assessment

            The provisions of this bill would make changes to the Motor Vehicle (“No Fault”) Insurance statutes. It would eliminate the requirement that motor vehicle insurance policies include coverage for wage loss; but would require auto insurance companies to make available optional wage loss replacement coverage, at current statutory minimum levels, to persons who have obtained motor vehicle insurance.

            It also would modify the limitation on tort motor vehicle actions i.e., the right to sue. It would allow recovery for loss of earnings and earning capacity extending beyond the 52-week period for which optional wage loss replacement coverage is available, regardless of whether or not the individual purchased the optional wage loss replacement coverage, and if such loss is not compensated by a motor vehicle insurance policy.

            The changes provided for in this bill would need to be reviewed by the Division of Insurance and would be reviewed as part of the division’s regular policy rate and form review process. This would have an insignificant impact on the workload of the division. 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