Date: 02/04/2009

Final
BILL SUMMARY for HB09-1166

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View--> Action Taken:
Moved amendment L.001 (Attachment I), as amended b
Moved amendment L.002 (Attachment J) to amendment
Moved to postpone House Bill 09-1166 indefinitely.
Moved to refer House Bill 09-1166, as amended, to 		Pass Without Objection
Pass Without Objection
PASS
FAIL



04:15 PM -- House Bill 09-1166

Representative Levy, prime sponsor, presented House Bill 09-1166, concerning the use of a pay-as-you-drive rate structure for determining premium rates for automobile insurance policies. This bill requires the Commissioner of Insurance to adopt rules for auto insurance rate plans based on the number of miles a policyholder drives. The rules will allow insurance companies to offer "pay-as-you-drive" (PAYD) policies as an option to consumers. Companies are eligible for a premium tax credit of $100 per vehicle covered by a PAYD policy with a limit of $1 million per calendar year for all companies combined. Within one year of adopting the rules and annually thereafter, the commissioner will report on the utilization and effectiveness of the PAYD plans to the General Assembly. Representative Levy spoke to amendments L.001 and L.002 (Attachments I and J). Representative Levy stated that amendment L.001 is a strike below. She noted that amendment L.002 strikes the term "pay-as-you-drive" and replaces it with "miles driven." She explained that the phrase the pay-as-you-drive is under trademark by Progressive Insurance. Representative Levy responded to committee questions about the difference between her bill, a type of insurance product, versus a program that requires people to pay according to the mileage driven on their car.

09HouseBus0204AttachI.pdf 09HouseBus0204AttachJ.pdf

04:33 PM

There was a discussion about city drivers versus rural drivers and the differences in cost between them under the bill. Representative Soper asked how the bill would affect drivers that drive outside of Colorado. Representative Levy stated that it does not matter where you accrue miles under the bill. Representative Gagliardi asked why insurance companies do not already use miles driven when calculating premiums. Representative Levy said they do use miles driven currently to an extent. Representative Stephens asked how the miles would be counted. Representative Levy said a transponder could be used, but it is still undecided.

04:58 PM -- Julie Hoerner, representing State Farm, testified in support of the bill. She said the bill allows another choice for consumers. Ms. Hoerner responded to earlier questions and stated that you only need insurance in Colorado if you drive on a public highway. She discussed how miles driven would be handled. Representative Gagliardi asked whether insurance companies can currently implement this type of policy. Ms. Hoerner said the product can currently be offered.

BILL:HB09-1166
TIME: 05:07:14 PM
MOVED:Rice
MOTION:Moved amendment L.001 (Attachment I), as amended by amendment L.002 (Attachment J). The motion passed without objection.
SECONDED:Scanlan
VOTE
Balmer
Bradford
Gagliardi
Liston
Priola
Ryden
Scanlan
Soper
Stephens
Casso
Rice
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB09-1166
TIME: 05:07:58 PM
MOVED:Rice
MOTION:Moved amendment L.002 (Attachment J) to amendment L.001 (Attachment I). The motion passed without objection.
SECONDED:Scanlan
VOTE
Balmer
Bradford
Gagliardi
Liston
Priola
Ryden
Scanlan
Soper
Stephens
Casso
Rice
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB09-1166
TIME: 05:10:39 PM
MOVED:Ryden
MOTION:Moved to refer House Bill 09-1166, as amended, to the Committee on Appropriations. The motion failed 6-5.
SECONDED:Soper
VOTE
Balmer
No
Bradford
No
Gagliardi
No
Liston
No
Priola
No
Ryden
Yes
Scanlan
Yes
Soper
Yes
Stephens
No
Casso
Yes
Rice
Yes
Not Final YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL
BILL:HB09-1166
TIME: 05:13:29 PM
MOVED:Liston
MOTION:Moved to postpone House Bill 09-1166 indefinitely. The motion passed 7-4.
SECONDED:Balmer
VOTE
Balmer
Yes
Bradford
Yes
Gagliardi
Yes
Liston
Yes
Priola
Yes
Ryden
No
Scanlan
No
Soper
No
Stephens
Yes
Casso
No
Rice
Yes
Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS



05:15 PM

The committee adjourned.