Colorado Legislative Council Staff

NO FISCAL IMPACT

TITLE:            CONCERNING THE AUTHORITY OF THE COLORADO INSURANCE GUARANTY ASSOCIATION.

Summary of Assessment

            This bill clarifies that the definition of "covered claim" in the Colorado Insurance Guaranty Association Act (association), includes first party claims for damage to property with a permanent location in this state. It also specifies that the act does not apply to any person with a net worth in excess of $10 million. The bill makes changes to the statutory liability provisions of the association and the powers and duties of the association, including the authority of the association to intervene as a party before any court in Colorado having jurisdiction over an insolvent insurer. The bill changes the authority of the association to recover certain claims paid. The bill would become effective 90 days after the adjournment of the Legislature, unless a referendum petition is filed and approved by the voters.

            This bill clarifies the guidelines on who and what is covered by the Insurance Guaranty Association Act. The provisions of the bill will not impact the workload of the Division of Insurance, Department of Regulatory Agencies. The bill will not affect any other state agency, or unit of local government. Therefore, this bill is assessed as having no fiscal impact.

Departments Contacted

            Regulatory Agencies              Judicial Branch