Date: 04/06/2009

Final
BILL SUMMARY for SB09-103

HOUSE COMMITTEE ON HEALTH AND HUMAN SERVICES

Votes: View--> Action Taken:
Amend page 2, line 12, insert "SPECIFICALLY" after
Moved to postpone Senate Bill 09-103 indefinitely.
Moved to refer Senate Bill 09-103, as amended, to 		PASS
PASS
FAIL



01:32 PM -- Senate Bill 09-103

Representative Pommer presented Senate Bill 09-103 which, as amended, makes it an unfair claim settlement practice for an insurance company to provide compensation based on the decision to deny or delay a claim, or to cancel or rescind an insurance policy. There was discussion regarding the fiscal note dated February 4, 2009, and the updated fiscal note dated February 23, 2009.

01:44 PM -- Kelly Campbell, Property Casualty Insurers Association of America, spoke in opposition to the bill. Ms. Campbell stated that proponents of the bill have been unable to document any instance of insurance companies paying adjusters to deny claims. She stated that the Unfair Claims Settlement Practice Act has provisions in it which address these issues. She stated that the bill is solution in search of a problem. Ms. Campbell stated that the Colorado Division of Insurance (DOI) has not reported any instance of what the bill proposes to fix. Representative Green commented that in the documentary "Sick in America," there was evidence of insurance adjustors being paid bonuses to deny claims. Ms. Campbell stated that insurance carriers have concern that the bill will increase litigation.

01:51 PM -- Cathy Wanstrath, Land Title Association of Colorado, spoke in opposition to the bill. She stated that there has not been a substantive change to the bill since leaving the Senate, yet the fiscal note has been significantly reduced. She reiterated that the bill does not address a demonstrated problem and that the Unfair Claims Settlement Practice Act can address the issues raised in the bill.

02:01 PM -- Michael Hodges, Colorado Trial Lawyers Association, spoke in support of the bill. He stated the bill authorizes the Commission of Insurance to exercise regulatory practices over how the insurance industry conducts its business. He stated that the law would also act as a deterrent for any insurance company who may engage in this type of practice. He stated it will also create incentives for companies to follow the rules.

02:06 PM -- Sheryle Hutter, Colorado Cross Disability Coalition, spoke in support of the bill. She stated that the bill is necessary. She stated that the bill provides increased protection for consumers.

02:09 PM -- Kelly Shanahan, Colorado Consumer Health Initiative, spoke in support of the bill. She stated that many insurance carriers have business profit models that include incentives for denial of claims. She stated that the bill clearly benefits the consumer.

02:12 PM -- Committee members asked questions of Ms. Shanahan and Mr. Hodges.

02:22 PM -- Sam Livingston, attorney, spoke in support of the bill. He stated that he was the lawyer that tried the case Peressini v American Family, in which insurance adjustors from American Family Insurance were paid for performance. He provided the details to the case. He stated that individuals are paid to deny claims.

02:27 PM -- Arthur Karstaedt, American Family Insurance, stated that he was the attorney for the case that Mr. Livingston referred to. He stated that there was no evidence that any person in the human resource department was paid a bonus or given any type of incentive to deny a claim. Brandon La Salle, American Family Insurance, read a statement which said that American Family Insurance does not pay rewards to individuals for denying claims. Mr. La Salle provided a copy of his statement to the committee (Attachment A).

09HouseHHS0406AttachA.pdf

02:29 PM -- Clare Pramuk, fiscal analyst, Colorado Legislative Council, spoke to the fiscal note.


02:32 PM

Representative Pommer provided concluding remarks to the bill. Representative Pommer asked why different people came to testify in the Senate versus the House committee of reference. He asked the committee to pass the bill as it is a consumer protection bill.
BILL:SB09-103
TIME: 02:42:05 PM
MOVED:Swalm
MOTION:Amend page 2, line 12, insert "SPECIFICALLY" after "FORM". The motion passed on a 7-4 roll call vote.
SECONDED:Gerou
VOTE
Acree
Yes
Gerou
Yes
Green
No
Kagan
No
Kefalas
Yes
Kerr J.
Yes
Nikkel
Yes
Primavera
No
Swalm
Yes
Gagliardi
No
Riesberg
Yes
Not Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:SB09-103
TIME: 02:43:51 PM
MOVED:Primavera
MOTION:Moved to refer Senate Bill 09-103, as amended, to the Committee of the Whole. The motion failed on a 5-6 roll call vote.
SECONDED:Green
VOTE
Acree
No
Gerou
No
Green
Yes
Kagan
Yes
Kefalas
Yes
Kerr J.
No
Nikkel
No
Primavera
Yes
Swalm
No
Gagliardi
Yes
Riesberg
No
Not Final YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:SB09-103
TIME: 02:45:49 PM
MOVED:Kerr J.
MOTION:Moved to postpone Senate Bill 09-103 indefinitely. The motion passed on a 6-5 roll call vote.
SECONDED:Nikkel
VOTE
Acree
Yes
Gerou
Yes
Green
No
Kagan
No
Kefalas
No
Kerr J.
Yes
Nikkel
Yes
Primavera
No
Swalm
Yes
Gagliardi
No
Riesberg
Yes
Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS