INDIANAPOLIS (May 21, 2007) — The National Association of Mutual Insurance Companies (NAMIC) is urging Colorado Gov. Bill Ritter to veto legislation concerning uninsured and underinsured motorists. In a letter to the governor, NAMIC warned that the legislation would hurt, rather than help, consumers.
“On behalf of NAMIC’s members, I respectfully request that you veto SB 256, so that insurance consumers are not forced to needlessly pay higher insurance rates for insurance coverage they may not need or desire,” wrote Christian Rataj, NAMIC’s state affairs manager for the western region. “Although SB 256 may seem like a consumer-friendly bill, in reality, it will only confuse insurance consumers, increase insurance rates for all insureds, and lead to frivolous insurance litigation.”
NAMIC has 118 member insurance carriers doing business in the state of Colorado. They write approximately 34 percent of the property/casualty insurance business in the state.
The legislation, Concerning the Payment of Uninsured Motor Vehicle Insurance as Excess to Other Insurance, would require insurance carriers to offer underinsured motorist coverage in an amount equal to the insured's liability coverage, allow for “stacking” of coverages in certain circumstances, and would turn underinsured motorist coverage into excess coverage. Stacking includes aggregating, combining, multiplying or pyramiding limits of separate policies.
Rataj gave the following reasons for vetoing the bill:
“NAMIC respectfully requests that you veto SB 256 for the aforementioned reasons, and protect insurance consumers from being forced to pay higher insurance rates to solve a nonexistent UIM problem,” Rataj wrote. “The current UIM law has worked well for the vast majority of insured and has stimulated a marketplace where UIM coverage is affordable for insurance consumers.”
For further information, contact
(202) 628-1558 Tel
(202) 628-1601 Fax
Christian John Rataj
NAMIC State Affairs Manager, Western Region
Posted: Monday, May 21, 2007 12:00:00 AM. Modified: Monday, May 21, 2007 3:47:07 PM.
317.875.5250 - Indianapolis | 202.628.1558 - Washington, D.C.