Opinion ID: 166884
Heading Depth: 2
Heading Rank: 1

Heading: Colorado Auto Accident Reparation Act

Text: 12 In 1973, the Colorado legislature passed the Colorado Auto Accident Reparations Act. In Clark I, we discussed the relevant statutory framework of CAARA: 13 The stated statutory purpose of CAARA is to avoid inadequate compensation to victims of automobile accidents. § 702. Colorado courts construe CAARA liberally to further its remedial and beneficial purposes. CAARA requires that a policy include a minimum level of PIP benefits. Specifically, [sub]section 706(1) requires a carrier to provide, without regard to fault, payments for medical expenses, rehabilitation expenses, and lost wages. Section 706 sets dollar and time limits for each category of expense. Section 707 defines the categories of people who receive coverage under section 706 to include 1) the named insured, 2) resident relatives of the named insured, 3) passengers occupying the insured's vehicle with the consent of the insured, and 4) pedestrians who are injured by the covered vehicle. Brennan, 961 P.2d at 553. CAARA also requires every insurer to offer the named insured extended PIP benefits in exchange for higher premiums. These extended PIP benefits do not place time or dollar limitations on medical expense claims and offer the possibility of greater wage loss reimbursements. 3 The version of section 710 effective at the time of [Mr.] Clark's accident, which applie[s] to policies issued on or after July 1, 1992, does not list or refer to persons eligible for extended coverage. Moreover, section 707, which sets out the four categories of PIP benefits recipients, refers only to the minimum PIP benefits available under section 706 and does not reference the enhanced benefits set out in section 710. 14 319 F.3d at 1237-39 (footnote and internal citations omitted). 15