Senator Danielson, bill sponsor, presented Senate Bill 20-176. This bill clarifies existing law that prohibits discretionary clauses that allow an insurer, plan administrator, or claim administrator to interpret terms of the policy, contract, or plan to determine eligibility for benefits in an insurance policy, contract, or plan issued in this state that offers health or disability benefits. The bill clarifies that any such provision is void and authorizes the Commissioner of Insurance to adopt rules regarding the prohibition.
The bill also clarifies that for this prohibition, "issued in this state" refers to every health and disability insurance policy, insurance contract, insurance certificate, and insurance agreement existing, offered, issued, delivered, or renewed in the State of Colorado or providing health or disability benefits to a resident or domiciliary of the State of Colorado and every employee benefit plan covering a resident or domiciliary of the state of Colorado, whether or not on behalf of an employer located or domiciled in Colorado, on or after August 5, 2008, notwithstanding any contractual or statutory choice-of-law provision to the contrary.
Finally, the bill separates a person's entitlement to de novo review in any court with jurisdiction from the person's entitlement to a trial by jury.