Premium issues: rising insurance rates ripe for legislative action.

• Author: Stokes, Jeanie

OPENED A STATEMENT FROM YOUR INSURANCE COMPANY OR YOUR EMPLOYER'S HUMAN-RESOURCES/BENEFITS DEPARTMENT LATELY?

IF NOT, BE PREPARED FOR STICKER SHOCK.

WHETHER IT'S HOME, AUTO OR HEALTH INSURANCE, PREMIUM COSTS IN COLORADO ARE RISING FASTER THAN THE NATIONAL AVERAGES. THAT MEANS A GREATER CHUNK OF YOUR MONTHLY PAYCHECK WILL BE PAYING FOR 10 PERCENT TO 20 PERCENT RATE INCREASES FOR INSURANCE COVERAGE IN 2003.

COME JANUARY, THE LEGISLATURE MUST DECIDE WHAT TO DO WITH A FAULTY NO-FAULT AUTO INSURANCE LAW THAT EXPIRES IN JULY, AND HOW TO BRING SOME MEASURE OF AFFORDABILITY TO health insurance in today's sluggish economy, with many people out of work.

Today "a lot of people have to choose between food on the table and auto insurance or health-care premiums," says Bill Thiebaut, a Pueblo Democrat who was last year's senate majority leader and who ran unsuccessfully for lieutenant governor last month.

During the past year, about 85,000 Coloradans have lost health insurance because their employers can no longer afford to offer the full coverage mandated by state law.

The insurance industry says its rates have been too low previously, but they were offset by profits in the stock market. Given the market's lackluster performance, the industry now is asking customers to pay their own way through higher premiums.

In some states, regulators set insurance rates. Ordered by Texas to cut its homeowners' premiums even though it was losing money Farmers Insurance Group opted to stop writing insurance there. State Farm is pulling out of New Jersey's auto insurance market for the same reason.

Colorado is a "file and use" state. A company files a notice of rate changes with the state for review Unless something's really out of whack, the company can charge whatever it thinks the market will bear.

The Division of Insurance is getting more calls from consumers than ever before, says spokeswoman Deborah Collette. The agency's primary legislative concern is to ensure that the law under which it operates is extended beyond its current sunset deadline of July 2004.

Thiebaut hopes the legislature will give the state insurance commission some teeth to make insurers justify their rate increases before they are put into effect. He also would like to see a consumer advocacy program, similar to that for utilities.

While lawmakers, lobbyists and consumers might not agree on what approach to take, the rules under which the insurance industry operates in Colorado are ripe for...