SB 17-182

Senate Bill 17-182, also known as Uninsured Motor Vehicle and Medical Coverage, clarifies how insurance companies handle payments for damages caused by crashes involving uninsured or underinsured drivers. It ensures that insurers don't have to pay more than the actual damage costs and allows them to limit stacking coverage from multiple policies within their own company but not across different companies. The bill has been signed into law, meaning its provisions are now enforceable in Colorado. This affects anyone who holds uninsured or underinsured motorist coverage in the state.

Official Summary

Current law forbids uninsured and underinsured medical coverage to take a setoff when medical insurance pays a part of the damages caused by a crash. The bill clarifies that this does not require the insurers to pay more than the actual damages caused by the crash. An insurer is authorized to prohibit stacking the limits of more than one uninsured motorist coverage policy if the provisions are included in a single policy covering multiple vehicles or in multiple policies issued by one insurer or by insurers under common ownership or management. But this provision must not prohibit stacking of the uninsured or underinsured policies issued to an insured by different companies or to an unrelated person. The maximum liability under the uninsured motorist coverage is the lesser of the policy limits and amounts paid by a legally liable person or the amount of damages sustained but not recovered. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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