Colorado Bill Aims to Clarify State PIP Coverages

A bill initiated by the National Association of Independent Insurers and designed to clarify Colorado’s different personal injury protection auto insurance coverages is making its way through the legislature.

Michael Harrold, Northwest regional manager of the NAII said that suggested amendments to Colorado’s “complicated and controversial” no-fault law should facilitate its operation.

HB 1034 recently passed out of the House Transportation and Energy Committee and is now headed to the House floor. Among the bill’s main points are:

• A new definition of “resident relative,” which is not defined in the current statute. This is important because resident relatives are entitled to benefits.

• Clarification of the different benefits packages which are required to be offered by insurers. The bill defines the original personal injury protection package as a “basic” package of benefits. Low-income drivers are entitled to purchase lower limits, which are defined as “reduced” benefits, and optional benefits exceeding the basic package are now called “enhanced” benefits.

• Clarification of which policy will cover the injuries in an accident, such as when the operator of a vehicle is an employee acting in the scope of his employment.