Colorado Legislative Council Staff

NO FISCAL IMPACT

TITLE:            CONCERNING THE ANNUAL GROSS INCOME LEVEL REQUIRED TO QUALIFY FOR A BASIC PERSONAL INJURY PROTECTION AUTO INSURANCE POLICY.

Summary of Assessment

            The bill changes the income criteria to qualify for a basic personal injury protection (PIP) auto insurance policy, offered under the so called "low income provisions", from a combined annual gross income of a person and such person's resident spouse of $20,000 to an amount not to exceed 185 percent of the federal poverty level adjusted for family size. This bill would become effective upon signature of the Governor.

            Current statutes provide for a combined annual gross income of a person and such person's resident spouse of $20,000, adjusted annually for consumer price index changes, based on 1991 income levels. This bill will require the Division of Insurance, Department of Regulatory Agencies, to promulgate a rule to implement these new income qualifying guidelines, creating a minimal impact on the workload of the division. This increased workload could be absorbed by current staff, but may require re-prioritizing existing workload. This bill would not impact any other state agency, or unit of local government. Therefore, this bill is assessed as having no fiscal impact.

Departments Contacted

            Regulatory Agencies