Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 12-0031.01 Bart Miller x2173 HOUSE BILL 12-1093 HOUSE SPONSORSHIP Soper, SENATE SPONSORSHIP (None), House Committees Senate Committees Economic and Business Development A BILL FOR AN ACT Concerning the right of an insured homeowner to have a defective appliance replaced as part of an insurance subrogation action to recover damages to a dwelling unit caused by a defective appliance. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) This bill adds provisions to the "Colorado Consumer Protection Act" to require as part of a homeowner's insurance subrogation action to recover damages to a dwelling unit caused by a defective appliance that was purchased new and used for less than 5 years and where damages sought exceed $5,000, that the final judgement in the case, if the insurer prevails, or the final settlement of the case, include provision for replacement of the defective appliance, unless the insured homeowner in writing waives total replacement of the defective appliance. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add part 12 to article 1 of title 6 as follows: PART 12 CONSUMER RIGHTS IN HOMEOWNER'S INSURANCE SUBROGATION ACTIONS 6-1-1201. Homeowner's insurance subrogation actions - defective appliances - rights of consumers - replacement of defective appliance. In any subrogation action brought by a homeowner's insurer to recover damages to a dwelling unit caused by a defective appliance that was purchased new and used for less than five years and where the damages sought exceed five thousand dollars, if the insurer prevails in the action, the judgment for the insurer shall contain an order for the replacement of the defective appliance, unless the insured homeowner in writing agrees to waive total replacement of the defective appliance. If the insurer agrees to a settlement of the dispute, the final agreement must provide for replacement of the defective appliance, unless the insured homeowner in writing agrees to waive total replacement of the defective appliance. SECTION 2. In Colorado Revised Statutes, 6-1-102, add (1.5) as follows: 6-1-102. Definitions. As used in this article, unless the context otherwise requires: (1.5) "Appliance" includes a furnace, stove, washer, dryer, or dishwasher. SECTION 3. Act subject to petition - effective date - applicability. (1) This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 7, 2012, if adjournment sine die is on May 9, 2012); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2012 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor. (2) The provisions of this act apply to homeowner's insurance subrogation actions on or after the applicable effective date of this act.