This information is prepared as an informational service only and should not be relied upon as an official record of action taken by the Colorado General Assembly.
Sixty-first General Assembly
LLS NO. 980146.01 JLB
HOUSE BILL 981104
STATE OF COLORADO
BY REPRESENTATIVES Veiga and Swenson;
also SENATOR Tebedo.
REENGROSSED
TRANSPORTATION & ENERGY
A BILL FOR AN ACT
CONCERNING CERTAIN REQUIRED AUTOMOBILE INSURANCE
COVERAGE AMOUNTS.
Bill Summary
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
adopted.)
Committee on Mandatory Motor Vehicle Insurance.
Effective July 1, 1998, reduces the described minimum automobile
insurance coverages as follows:
Item Reduction Amount
Personal injury protection (PIP) $50,000 to $5,000
coverage
Rehabilitation procedures $50,000 to $5,000
Loss of gross income $400/week to $5,000
States that, to the extent the abovedescribed benefits have not been exhausted, the remaining benefit amounts may be used for the other described benefits. Requires insurers to make available policy options that provide more than the minimum coverages.
Retains legal liability minimum coverages at current levels.
Eliminates basic policies for qualified lowincome
persons.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. 104706 (1) (b) (I), (1) (c) (I), (1) (d) (I), and (3), Colorado Revised Statutes, are amended, and the said 104706 (1) is further amended BY THE ADDITION OF THE FOLLOWING NEW PARAGRAPHS, to read:
104706. Required coverages complying policies PIP examination program. (1) Subject to the limitations and exclusions authorized by this part 7, the minimum coverages required for compliance with this part 7 are as follows:
(b) (I) Compensation without regard
to fault, up to a limit of fifty
FIVE thousand dollars per person for any one accident, for payment
of all reasonable and necessary expenses for medical, chiropractic,
optometric, podiatric, hospital, nursing, xray, dental,
surgical, ambulance, and prosthetic services, and nonmedical remedial
care and treatment rendered in accordance with a recognized religious
method of healing, performed within five years after the accident
for bodily injury arising out of the use or operation of a motor
vehicle; except that, to the extent that the benefits offered
pursuant to paragraph
PARAGRAPHS (c) AND (d) of this subsection (1) have not been exhausted,
the remaining value of such benefits shall be available to the
insured or injured person entitled to benefits for treatment pursuant
to this paragraph (b).
(c) (I) Compensation without regard
to fault up to a limit of fifty
FIVE thousand dollars per person for any one accident within ten
years after such accident for payment of the cost of rehabilitation
procedures or treatment and rehabilitative occupational training
necessary because of bodily injury arising out of the use or operation
of a motor vehicle; EXCEPT THAT, TO THE EXTENT THAT THE BENEFITS
OFFERED PURSUANT TO PARAGRAPHS (b) AND (d) OF THIS SUBSECTION
(1) HAVE NOT BEEN EXHAUSTED, THE REMAINING VALUE OF SUCH BENEFITS
SHALL BE AVAILABLE TO THE INSURED OR INJURED PERSON ENTITLED TO
BENEFITS FOR TREATMENT PURSUANT TO THIS PARAGRAPH (c).
(d) (I) (A) Payment of benefits
equivalent to one hundred percent of the first one hundred twentyfive
dollars of loss of gross income per week, seventy percent of the
next one hundred twentyfive dollars of loss of gross income
per week, and sixty percent of any loss of gross income per week
in excess thereof, with the total benefit under this subparagraph
(I) not exceeding four hundred dollars
per week FIVE THOUSAND DOLLARS, from
work the injured person would have performed had he not been injured
during a period commencing the day after the date of the accident,
and not exceeding fiftytwo additional weeks. In addition
payment shall be provided for expenses not exceeding twentyfive
dollars per day which are reasonably incurred for essential services
in lieu of those the injured person would have performed without
income during the period commencing the day after the date of
the accident and not exceeding fiftytwo additional weeks.
SUCH ADDITIONAL PAYMENT SHALL BE MADE ONLY IF AND TO THE EXTENT
SUCH PAYMENT IS WITHIN THE FIVE THOUSAND DOLLAR TOTAL BENEFIT
AMOUNT PAYABLE UNDER THIS SUBPARAGRAPH (I).
(B) NOTWITHSTANDING SUBSUBPARAGRAPH (A) OF THIS SUBPARAGRAPH (I), TO THE EXTENT THAT THE BENEFITS OFFERED PURSUANT TO PARAGRAPHS (b) AND (c) OF THIS SUBSECTION (1) HAVE NOT BEEN EXHAUSTED, THE REMAINING VALUE OF SUCH BENEFITS SHALL BE AVAILABLE TO THE INSURED OR INJURED PERSON ENTITLED TO BENEFITS FOR TREATMENT PURSUANT TO THIS PARAGRAPH (d).
(f) EVERY INSURER PROVIDING POLICIES PURSUANT TO THIS SUBSECTION (1) SHALL MAKE POLICY OPTIONS AVAILABLE TO CONSUMERS THAT PROVIDE COVERAGES GREATER THAN THE MINIMUMS SET FORTH IN PARAGRAPHS (b), (c), AND (d) OF THIS SUBSECTION (1).
(g) AN INSURER OFFERING THE COVERAGES AUTHORIZED IN THIS SUBSECTION (1), AS AMENDED BY H.B. 981104, ENACTED AT THE SECOND REGULAR SESSION OF THE SIXTYFIRST GENERAL ASSEMBLY, SHALL DEMONSTRATE IN RATE FILINGS SUBMITTED TO THE COMMISSIONER THE SAVINGS TO AN INSURED PURCHASING THE MINIMUM REQUIRED COVERAGE AFTER THE ENACTMENT OF H.B. 981104 COMPARED WITH PURCHASING THE MINIMUM REQUIRED COVERAGE PRIOR TO THE ENACTMENT OF H.B. 981104.
(3) (a) Notwithstanding
anything in subsection (1) of this section, an insurer may offer,
as an alternative to the minimum coverages required under subsection
(1)(b), (1)(c), (1)(d), and (1)(e) of this section, to persons
qualified pursuant to paragraph (c) of this subsection (3), a
basic personal injury protection policy which shall be deemed
to provide minimum coverages required for compliance with this
part 7. Acceptance of any policy offered pursuant to this subsection
(3) shall be voluntary and shall be subject to all requirements
of this subsection (3).
(b) For persons qualified pursuant
to paragraph (c) of this subsection (3), the coverages and limitations
provided in a basic personal injury protection policy shall be
as follows:
(I) Compensation without regard
to fault, up to a limit of twentyfive thousand dollars per
person for any one accident for payment of all reasonable and
necessary expenses for medical, chiropractic, optometric, podiatric,
hospital, nursing, xray, dental, surgical, ambulance, and
prosthetic services, and nonmedical remedial care and treatment
rendered in accordance with a recognized religious method of healing,
performed within five years after the accident for bodily injury
arising out of the use or operation of a motor vehicle;
(II) No compensation shall be
offered for rehabilitative occupational training;
(III) Compensation on account
of the death of a person for whom direct benefits are provided
under this section, payable to the estate of the deceased, in
the total amount of five thousand dollars.
(c) (I) To qualify for a
basic personal injury protection policy, a person and such person's
resident spouse shall not have a combined annual gross income,
from all sources, of more than twenty thousand dollars.
(II) The base year for calculation
of the maximum qualifying combined annual gross income for purposes
of this paragraph (c) shall be 1991, and such maximum qualifying
combined annual gross income shall be readjusted annually on January
1, starting January 1, 1993, based on the increase, if any, for
the preceding calendar year in the consumer price index for all
urban consumers as published by the United States bureau of labor
statistics.
(III) Income verification for
a basic personal injury protection policy shall be through written
evidence from the person seeking to qualify for a policy issued
pursuant to this subsection (3) of the annual gross income of
such person and such person's resident spouse for the most recent
tax year available. Such evidence shall be contained in a document
acceptable to the policy provider. For persons qualified pursuant
to this paragraph (c), further verification of annual gross income
shall be required in the same manner every third year following
the date upon which the policy is issued.
(d) Any insurer providing policies
pursuant to this subsection (3) may offer to any person qualified
for such policies pursuant to paragraph (c) of this subsection
(3) any costcontainment measure, as a part of any such policy,
as specified in subsection (2) of this section.
(e) (I) Any insurer providing
policies pursuant to this subsection (3) shall provide to any
person qualified for such policies pursuant to paragraph (c) of
this subsection (3) a loss of gross income benefit; except that
if the insured represents in writing that neither the insured
nor the insured's resident spouse has received, during the thirtyone
days previous to applying for coverage, any earned income from
wages from regular employment and that none is anticipated for
at least the next one hundred eighty days the insured may waive
loss of gross income benefits. Such benefit shall be for a loss
of gross income due to an injury arising out of the use or operation
of a motor vehicle if such injury prevents the injured insured
from earning income of up to and including five thousand dollars
which shall be paid as follows:
(A) The equivalent of one hundred
percent of the first one hundred twentyfive dollars of loss
of gross income per week;
(B) Seventy percent of the next
one hundred twentyfive dollars of loss of gross income per
week; and
(C) Sixty percent of any loss
of gross income per week in excess thereof, with the total loss
of gross income benefit up to four hundred dollars per week.
(II) A loss of gross income benefit
shall not be payable for more than fiftytwo weeks.
(f) (I) The basic personal
injury protection policy shall apply only to the named insured,
resident spouse, and resident child. For purposes of this subsection
(3), a child is a resident if such child qualifies as a dependent
of the named insured under the federal income tax code, 26 U.S.C.A.,
sec. 151 (c).
(II) Any person injured in an
accident, other than those persons whose coverage is specifically
limited in a basic personal injury protection policy pursuant
to subparagraph (I) of this paragraph (f), shall, if expenses
incurred by such injured person exceed the limits of such basic
personal injury protection policy, receive coverage for such expenses
of not less than the minimum coverages mandated by paragraphs
(b), (c), (d), and (e) of subsection (1) of this section.
(g) All persons who qualify for
and opt for a basic personal injury protection policy pursuant
to this subsection (3) shall be deemed in violation of this part
7 if such persons do not obtain a policy providing legal liability
coverage as specified in paragraph (a) of subsection (1) of this
section.
(h) For the first year an insurer
offers the coverages authorized in this subsection (3), such insurer
shall demonstrate in rate filings submitted to the commissioner
that a savings of a minimum of fifteen percent of the personal
injury protection coverage premium shall be realized under the
plan. Any disclosure form to be used to record an insured's election
for any coverage authorized in this subsection (3) shall be submitted
to the commissioner for preapproval.
SECTION 2. Effective date applicability. This act shall take effect January 1, 1999, and shall apply to policies issued and renewed on or after said date.
SECTION 3. 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.