A bill to create a board representing Colorado policyholders that would advise the state insurance commissioner on rates is drawing fire from an insurance trade group.
The National Association of Mutual Insurance Companies said it will oppose legislation in Colorado creating an 11-member Consumer Insurance Board, calling it “a redundant and inappropriate use of state revenue.”
The measure–introduced by State Rep. Fran Coleman, D-Denver–calls for a board with four consumer representatives as well as one from the insurance industry, one representing large corporations, as well as representatives of small business, hospitals, health care providers, labor and rural communities.
A fiscal note with the bill puts the impact at $254,436 in 2006 and $866,296 in 2007
“Colorado insurance consumers and taxpayers should not be forced to pay for the creation of a Consumer Insurance Board that is not needed,” said NAMIC West Region State Affairs Manager Christian John Rataj, who called it “a waste of limited state resources.”
NAMIC said it will join other members of the insurance industry in drafting and submitting a fact sheet for the members of the House Business Affairs and Labor Committee.
Mr. Rataj argued the work to be done by the group is unnecessary and is “already performed by the Division of Insurance and other state regulatory agencies that are expressly authorized to consider arguments made by consumer interest groups when drafting insurance regulations.”
Allowing the board to review the commissioner's performance, according to Mr. Rataj, “would afford the board an opportunity to exert undue influence over the policy decisions of the Division of Insurance.”
Versions of HB 1043 have been offered in previous years, under a variety of different titles, and all have been rejected by the state legislature, according to NAMIC.
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