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Colo. legislators to tackle auto insurance in 2006 session

The 2006 legislative agenda for property/ casualty insurers in Colorado will be dominated by automobile insurance and regulatory issues, according to the Property Casualty Insurers Association of America (PCI), based in Des Plaines, Ill.

According to Kelly Campbell, regional manager for PCI, a key in the debate about auto insurance will be whether coverage for medical payments should be mandatory. PCI believes medical payments coverage should be optional – providing consumers with more choice.

“We will vigorously oppose efforts to mandate medical payments coverage and tell lawmakers to just say no to changes that strip away the cost savings achieved by moving to the tort system,” Campbell said. “Some of the proposals being discussed will require most drivers to pay twice for medical coverage – once through their health insurance and a second time through car insurance. These efforts hurt consumers by taking away consumer choice and increasing the cost of insurance.”

The Colorado legislature will consider several proposals developed by the Interim Auto Insurance Committee this fall. The committee focused much of its attention on chiropractors’, hospitals’, trauma centers’ and emergency first responders’ claims of financial problems.

“We expect the legislative wrangling over the impact of the transition to the tort-based system will be intense as these interest groups seek to address their financial woes at the expense of Colorado motorists,” Campbell said. “However, forcing Colorado drivers to pay more for auto insurance is not the answer.”

Legislation that has been considered during past sessions and will likely resurface again during this year’s legislative session includes proposals to ban or severely restrict credit-based insurance scoring, as well as efforts to reverse reforms to the workers’ compensation system.

PCI also expects to see proposals for prior approval of rates and market conduct legislation. Last year, the Legislature defeated several insurance scoring bills and legislation that would have prohibited the workers’ comp guaranty fund from seeking reimbursement from large employers.

A new version of workers’ comp legislation that allows injured employees to choose their own medical provider is expected to be introduced this session, after similar legislation was repeatedly defeated last year.