SB 17-181

Senate Bill 17-181 changes how insurance and other compensation sources are considered in personal injury lawsuits. Traditionally, juries don't know about these sources, but this bill allows evidence of them unless the plaintiff agrees to have their award reduced by either what they've received from or paid into those sources. However, if a defendant is convicted for repeat alcohol-related driving offenses causing injuries, the old rule still applies and no reductions are made based on collateral sources. The bill has been signed into law, meaning these changes will now be implemented in Colorado's legal system.

Official Summary

The bill modifies the collateral-source rule, which generally states that in a civil action for damages the jury should not be told about insurance coverage or other sources from which the plaintiff has received or may receive compensation (collateral sources). The bill allows evidence of collateral sources unless the plaintiff agrees to have the jury's award reduced by the lesser of: The amount paid or available to the plaintiff from collateral sources; or The amount of premiums or other contributions the plaintiff paid to those collateral sources. The bill establishes the procedure for determining these amounts and the conditions under which the plaintiff may elect to invoke the collateral-source rule. The bill retains the original collateral-source rule, without the changes specified above, if the defendant has been convicted of a second or subsequent alcohol-related driving offense that resulted in injury. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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