First Regular Session

Sixty-first General Assembly

LLS NO. 97­0341.01 PLCHOUSE BILL 97­1184

STATE OF COLORADO

BY REPRESENTATIVE Romero

BUSINESS AFFAIRS & LABOR

A BILL FOR AN ACT

CONCERNING INSURANCE COVERAGE FOR OCCUPANTS OF MOTORVEHICLES UNDER THE "COLORADO AUTO ACCIDENT REPARATIONSACT".

Bill Summary

(Note: This summary applies to this bill as introducedand does not necessarily reflect any amendments which may be subsequentlyadopted.)

Changes the definition of "insured" toinclude a person with a good faith belief that he or she is entitledto occupy the vehicle and makes personal injury protection benefitspayable to such person.

Provides that the primary insurance coverage foran occupant of a vehicle involved in an accident shall be theinsurance policy covering the vehicle. If there is no insurancecoverage on the vehicle, primary coverage shall be the occupant'spersonal insurance policy. If the occupant has no insurance policy,then primary coverage shall be the driver's personal insurancepolicy.

Be it enacted by the General Assembly of the Stateof Colorado:

SECTION 1.  10­4­703(6), Colorado Revised Statutes, 1994 Repl. Vol., is amended toread:

10­4­703.  Definitions.As used in this part 7, unless the context otherwise requires:

(6)  "Insured" means the namedinsured, relatives of the named insured who reside in the samehousehold as the named insured, or any person using the describedmotor vehicle with the permissionof the named insured A GOOD FAITHBELIEF THAT HE OR SHE IS ENTITLED TO OCCUPY THE VEHICLE.

SECTION 2.  10­4­707(1) (c) and (4), Colorado Revised Statutes, 1994 Repl. Vol., areamended to read:

10­4­707.  Benefits ­how payable.  (1)  Thecoverages described in section 10­4­706 (1) (b) to (1)(e) or alternatively, as applicable, section 10­4­706(2) or (3) shall be applicable to:

(c)  Accidental bodily injury arising outof accidents occurring within this state sustained by any otherperson while occupying the described motor vehicle with theconsent of the insured A GOOD FAITHBELIEF THAT HE OR SHE IS ENTITLED TO OCCUPY THE VEHICLE or whilea pedestrian if injured in an accident involving the describedmotor vehicle.

(4)  When an accident involves the operationof a motor vehicle by a person who is neither the owner of themotor vehicle involved in the accident nor an employee of theowner, and the operator of the motor vehicle is an insured undera complying policy other than the complying policy insuring themotor vehicle involved in the accident, primary coverage as toall coverages provided in the policy under which the operatoris an insured shall be afforded by the policy insuring the saidoperator, except as provided in subsection (6) of this section,and any policy under which the owner is an insured shall affordexcess coverage. When an accident involves the operation of amotor vehicle regulated under the provisions of article 10 or11 of title 40, C.R.S., the provisions of subsection (3) of thissection shall apply. PRIMARY COVERAGE FOR AN OCCUPANT OF THE VEHICLESHALL BE ON THE COMPLYING POLICY INSURING THE VEHICLE. IF THEREIS NO COMPLYING POLICY INSURING THE VEHICLE, PRIMARY COVERAGEOF THE OCCUPANT SHALL BE ON THE POLICY UNDER WHICH THE OCCUPANTIS PERSONALLY INSURED. IF NEITHER THE OCCUPANT NOR THE VEHICLEARE INSURED, THEN THE POLICY UNDER WHICH THE DRIVER OF THE VEHICLEIS INSURED, INCLUDING PIP AND ANY OTHER COVERAGE REQUIRED BY THISPART 7, SHALL EXTEND TO COVER THE OCCUPANT OF THE VEHICLE.

SECTION 3.  Effective date ­ applicability.This act shall take effect July 1, 1997, and shall apply to allpolicies subject to part 7 of article 4 of title 10, ColoradoRevised Statutes, that are delivered, issued for delivery, renewed,extended, or modified on or after January 1, 1998. SECTION 4.  Safetyclause. The general assembly hereby finds, determines, anddeclares that this act is necessary for the immediate preservationof the public peace, health, and safety.