Committee Advances Bill to Strengthen Victim Compensation

DENVER, CO –
The Senate Judiciary Committee today passed legislation to prioritize direct victims of crime over insurance companies in restitution payments.
HB26-101
7
, sponsored by Senator Mike Weissman, D-Aurora, would clarify Colorado law regarding insurance companies’ eligibility for restitution.
“Restitution should be reserved for victims of crime so they can get their life back on track – not to further pad the pockets of insurance companies,”
said Weissman.
“Insurance companies that have paid out claims following a crime are not victims, they are financial institutions designed to balance risk and loss. This bill would create clarity and consistency for restitution decisions going forward.”
Restitution is court-ordered payment from a convicted offender to the victim, designed to cover financial losses directly resulting from a crime. Under current law, insurers of a victim of a crime can receive restitution payments in criminal cases. HB26-1017 would prohibit insurance companies from receiving these restitution payments unless they are a direct victim of a crime such as fraud, theft, or property damage.
The bill would clarify Colorado’s laws on insurance companies’ eligibility for restitution that have been the
subject of confusion in Colorado
courts
.
HB26-1017 now heads to the Senate floor for further consideration. Track its progress
HERE
.