A bill that sought to criminalize incentives that might be paid to claim handlers for denying claims in Colorado failed to make it out of the state's House of Representatives.
The bill, SB 09-103, would have added the following language to Colorado's unfair claim settlement practices act as a deceptive practice: "The act of providing any pay, salary, rewards, bonus, promotion, or other financial incentive to any person involved in the review of a claim for benefits or to persons performing utilization review, in connection -- directly or indirectly -- with the denial of a claim made by an insured or claimant or the cancellation of an insurance policy."
The bill was sponsored by Rep. Jack Pommer, D-Boulder, and Sen. Morgan Carroll, D-Aurora. It was originally introduced to the Senate in late January 2009, passed by the Senate with amendments on March 20, then passed again on March 23. However, on March 30, a House Committee on Health and Human Services postponed the bill indefinitely, effectively killing the measure.
The complete text of the bill can be found by clicking here.
Interested in more legal news and in-depth articles? Head over to Claims' legal channel for more information.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
