HB 26-1017

House Bill 26-1017, which has been signed into law in Colorado, stops courts from requiring criminal restitution payments directly to insurance companies for losses that the insurers can cover through existing policies. This means if someone is convicted of a crime and an insurance company could have paid for the damages or losses, the court won't order the offender to pay those costs directly to the insurer as part of their restitution. However, the law does allow insurance companies to sue criminals separately in civil court to recover any losses they've suffered. This change affects how criminal cases involving insurance claims are handled and ensures that victims covered by insurance can still receive compensation through their policies.

Official Summary

For the purpose of criminal restitution, the act excludes from the definition of 'restitution' losses for which a victim may be compensated through a private insurance policy, except for worker's compensation insurance. Current law defines a 'victim' as any person who has suffered losses because of a contractual relationship, including an insurance company. The act excludes a person from the definition of 'victim' because of a contractual relationship but clarifies that an insurance company is a 'victim' if the insurance company is a victim of a scheme to defraud the insurance company or when the insurance company's property is damaged or stolen through a criminal act. The act authorizes the court to award a victim restitution for a deductible amount under the victim's insurance policy. The act does not prohibit an insurance company from filing a civil action or pursuing any other civil action against a defendant to recover losses the insurance company has suffered.(Note: This summary applies to this bill as enacted.)

Topics

Votes