Thursday, February 25, 2010

Colorado Anti-Subrogation Statute Question

Is anybody sufficiently familiar with Colorado law to know OTOH whether they have an anti-subrogation statute like we do? Just hoping...

Colorado Attorney

Our firm focuses exclusively on healthcare compliance (we resolve liens for PI attorneys on a broad basis nationwide). From our research, CO does not have anti-subro currently. There has been a bill introduced that may take them in that direction.

See below:

House Bill 10-1168 Introduced

Proposed addition under Insurance Title of Colorado Statutes

Codifies Made Whole and Common Fund
If insurer disputes they must file motion and court decides

Subrogation is prohibited

Third party settlor cannot add insurer as co-payee on any settlement check

The bill introduced in the House seeks to eliminate all subrogation and permit reimbursement ONLY when the injured insured is made whole (fully compensated for injuries and damages). If the insurer disputes the argument of made whole they may motion the court with underlying jurisdiction to decide whether fully compensated. Such motion must be brought within 60 days after the insurer is notified that the recovery is exceeded by the damages. IF insured receives full compensation (made whole) then insurer MUST reduce for proportionate share of fees and expenses. Also any reimbursement MUST be applied to the lifetime cap of the policy.

Hope this helps. My best,
Tate Johnson, Esq.