The Colorado House of Representatives is scheduled to take up HB 1012, a bill targeting the use of video surveillance by insurers this week. HB 1012 was amended in committee last Friday to remove some very onerous provisions. It now is headed to the full House for a vote on Friday.
“The amended bill is better than the original bill that was introduced at the beginning of the 2010 legislative session” said the Coalition’s Howard Goldblatt. Surveillance is a vital tool that helps insurers pay legitimate claims and identify and prove fraudulent activity.
Insurance fraud raises the cost of doing business in Colorado and the goal of any legislative effort should be to weigh the reduction of fraud with the proper level of anti-fraud effort, Goldblatt said.
The current language sets what is considered subjective standards for determining whether video surveillance is necessary as well as whether the surveillance violates the standard of what is “intrusive, intimidating, or harassing.”
The bill further states that all materials collected shall be destroyed within five years after the resolution of the claim, unless the materials are necessary to resolve an ongoing fraud investigation. These issues raise concerns that passage still would place burdens on workers compensation insurers that would ultimately lead to fewer fraud investigations, higher workers comp premiums paid by businesses in Colorado and could lead to a tighter job market as businesses pay more for workers compensation, according to Goldblatt.
The Coalition believes the legislature needs to answer several key questions as it debates the fate of HB 1012 including:
• Are there legitimate purposes other than anti-fraud that insurers use surveillance that could be disrupted by the amended language and are there other legal ramifications for the maintaining the records of an investigation beyond the five-year time frame contemplated by the bill?
Answers to these questions will help all parties to fully understand if HB 1012 will serve the residents of Colorado.
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