Great news for Coloradoans! After hard work and determination from Darin Schanker and Kyle Bachus, founding partners of Bachus & Schanker, LLC, SB 256 passed the Colorado Senate yesterday with flying colors. In case you didn’t know, SB 256 concerns underinsured motorist coverage policies in Colorado. Simply put, the bill takes away the current loophole in the law which allows auto insurance carriers to receive a set off. To read the bill, click here. Click on the next link for a practical example as to how the current bill operates and what the new bill does to changes this and help consumers.
The current law allows insurance carriers to receive a set-off from the amount the victim receives from a tortfeasor (i.e. the one who caused injury)
Look at it this way: I carry 100/300 in UIM coverage on my policy. I am then seriously injured. I make a claim and then settle with tortfeasor for his policy limits of $25,000.00 but my damages are $125,000.00. I then make a UIM claim under my own policy. Under current Colorado law, although I carry 100/300 and have paid my premiums accordingly, and even though my damages are now $100,000.00, I would be precluded from receiving the full 100 under my own policy. In other words, my total recovery would be reduced by $25,000 – the amount I recovered from tortfeasor. Ins. companies get a SET-OFF at my expense and I am not made whole.
What 256 does is close this gap and allows me to “stack” my UIM coverage on top of tortfeasor policy limits so that I get the full benefit of what I paid for – ie 100,000.00.
This bill will drastically increase the total amount of monies (or recovery) available for someone who is seriously injured. It helps Colorado consumers tremendously!