Legislative Voice

Consumers United Association Legislative Update May 2006

In This Issue Auto Insurance KGNU Radio Program on Auto Insurance Identity Theft Mortgage Lending Dear Renee, We are happy to report that the end result of this legislative session brought consumers further protections in the areas of auto insurance, identity theft, and mortgage fraud. While some good proposals were lost, CUA is happy to report on the progress that was made this year on issues we have watched and been involved in. Renee Beauregard, Executive Director Auto Insurance In July 2005, a legislative committee on auto insurance was formed to address many concerns that have arisen since the change from the No-Fault Auto Insurance System to the current Tort System. The charge of the committee was to identify problems and to present possible solutions by way of legislative bills that would be considered during the regular session. The committee conducted a thorough investigation of all the complicated issues related to auto insurance. They received expert testimony in virtually every area. CUA conducted a survey of our members and testified before this committee at that time. After careful consideration of testimony, the committee produced several pieces of legislation that were considered during this legislative session. Some have passed and some have not: Passed: HB06-1030 Auto Insurance Disclosure Requirements View this bill Requires auto insurance companies to disclose and explain all options available to the consumer and the ramifications of turning down portions of the policy the consumer opts out of. This bill was necessary because many consumers who need MedPay are opting out of it, putting themselves at significant risk. The bill also made MedPay the primary payee over personal health insurance coverage. SB06-041 Prompt Pay Auto Accident Claims. View this bill Requires auto insurance companies to pay accident claims promptly regardless of whether fault in the accident has been determined. Prior to this bill, this was not a requirement as it was under no-fault. Did Not Pass SB06-019 Mandatory medical coverage This bill concerned a requirement that emergency medical care coverage (MedPay) be included in auto insurance policies. Currently, Medpay is not a requirement. HB06-1036 Mandatory offer of Medical Payment Coverage This bill addressed the need for all auto insurance companies to offer medical payment coverage. This is not currently a requirement. HB06-1043 Consumer Insurance Board Would have created a board of consumers to oversee consumer insurance issues. HB06-1044 Third-party claims Concerned claims practices for bodily injury to a third-party claimant arising out of the use of an automobile. The bill would have provided for prompt payment for bodily injury arising from accidents to any injured person. KGNU Radio Program on Auto Insurance Listen to our interview with KGNU Radio on this subject to learn how important the tort vs. no-fault auto insurance system issue is to you: KGNU interview with Consumers United Association about auto insurance KGNU In-depth program on auto insurance Do you have medical payment coverage on your auto insurance policy? If not, or if you don't know, we urge you to call your insurance agent today unless you have significant financial resources available to cover you if you are injured. View our previous articles on the subject of auto insurance Identity Theft For several years, many legislators have tried to pass laws to make identity theft a more severe crime and to protect consumers against identity theft in various ways. Last year, the security freeze bill passed, which enables consumers to block anyone from accessing their credit report without their permission. This year, two new protections were added: Passed: HB06-1326 Identity Theft View this bill The law makes identity theft a class 4 felony and describes what is considered to be identity theft in detail. Broadly described, this includes a person who is knowingly in possession of personally identifying information of another person without permission and gathering identity information by deception. HB06-1347 Identity Theft Fraud Board View this bill The bill created a board of experts charged with providing statewide support to law enforcement on identity theft and financial fraud. Do you protect your personal information? Click here for helpful tips to protecting personal information Mortgage Lending Recently there have been many news stories about the fact that Colorado is one of only two states in the country that has no licensure or regulation for mortgage brokers. As a result, any person could become a mortgage broker, even if they have a criminal record. Many consumers have been victimized by criminal mortgage brokers. This year, improvements have been made to protect consumers: Passed: HB06-1161 Regulate Mortgage Brokers View this bill This legislation requires registration and criminal background checks for anyone who applies to become a mortgage broker. It also requires the person to post a bond. The Division of Real Estate will have oversight of mortgage brokers. HB06-1323 Mortgage Fraud Crime View this bill This bill created a $75,000 penalty for mortgage fraud. It gave the attorney general jurisdiction over mortgage fraud as well. CUA produced a series of articles on home buying and the types of loans available to consumers: Affording and Financial Your Home First Time Home-Buying Listen to CUA Radio Interview on Home Buying Quick Links... Consumers United Association Colorado Legislature Project Vote Smart

email: cua@cuacolorado.org phone: 303-400-3456 web: http://www.cuacolorado.org