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.

HB26-1017, 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.