Colorado: Resolution Seeks Study on Switch From PIP to Tort-Based Auto Insurance System

Recent insurance industry studies have shown that most consumers are benefiting from lower auto insurance rates as a result of the state’s switch from a PIP to tort-based auto insurance system. Unfortunately, many in the medical community are now blaming its problems on the switch to a tort-based auto insurance system.

The Colorado Legislature has introduced House Joint Resolution 1026, which would create a study committee to evaluate the transition from PIP to a tort-based auto insurance system. On March 21, the House Committee on Business Affairs and Labor passed the resolution and sent it to the House Committee of the Whole for its consideration.

NAMIC applauds the desire of lawmakers to form a study committee, but is concerned the medical community, via its media blitz, is trying to make the auto insurance industry “the fall guy” for the woes of the health industry.

As Carole Walker, executive director of the Rocky Mountain Insurance Information Association has said, “the committee needs to study ALL of the impacts, including auto and health rates, auto and health claims experience, gaps in understanding and adapting to the changes, particularly on the part of the provider community and what is happening nationally and in the 37 other tort states.”

Direct questions to NAMIC State Affairs Manager Christian John Rataj.

Posted: Monday, April 04, 2005 12:00:00 AM. Modified: Thursday, April 21, 2005 3:35:07 PM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.