Colorado Legislative Council Staff

NO FISCAL IMPACT

TITLE:            CONCERNING ABUSE OF PROPERTY INSURANCE.

Summary of Assessment

            This bill clarifies that business practices that reduce or eliminate the copayments and deductibles for property insurance or provide rebates or other things of value to an insured interfere with insurance contracts only when the cost is passed on to the insurer.

            Under current law, abuse of property insurance is a class 2 misdemeanor. This bill specifies that any person who violates this law, in addition to any criminal penalties under current law, may be:

            •   subject to disciplinary action by any governmental body responsible for licencing or regulating the person, and

            •   liable to any person who suffers financial injury or damage in the amount of the actual damages sustained plus the costs of the suit, including legal fees.

            This bill will become effective 90 days after adjournment unless a referendum petition is filed.

            This bill will not affect the Department of Law or the Department of Regulatory Agencies, and is not anticipated to affect caseload of the Judicial Branch. This bill will not affect state or local government revenue or expenditures, and is assessed as having no fiscal impact.

Departments Contacted

            Law                Regulatory Agencies              Judicial