First Regular Session

Sixty-first General Assembly

LLS NO. 97­0293.01 MCV SENATE BILL 97­

STATE OF COLORADO

BY SENATOR Ament

TRANSPORTATION

A BILL FOR AN ACT

CONCERNING A PROHIBITION AGAINST ADVERSELY MODIFYING AN AUTOMOBILE INSURANCE POLICY BASED UPON A SPEEDING OFFENSE IF NO ACCIDENT OCCURS AT THE TIME OF THE OFFENSE.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments which may be subsequently adopted.)

Provides that the following are unfair methods of competition and unfair or deceptive practices in the business of insurance:

·  To deny, refuse to issue, refuse to renew, refuse to reissue, cancel, or otherwise terminate an insurance policy or to restrict coverage on any person solely because of a conviction for, or because of points accumulated against a driver's license for, a speeding offense, other than taking part in a speed contest, if the offense does not involve an accident or claims for property damage or bodily injury; or

·  To add any surcharge or rating factor to a premium of an insurance policy solely because of such conviction or because of points accumulated against a driver's license for such offense.

Excludes from such prohibitions any insured whose driver's license is suspended or revoked as the result of a speeding offense.

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

SECTION 1.  10­3­1104 (1), Colorado Revised Statutes, 1994 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

10­3­1104.  Unfair methods of competition and unfair or deceptive acts or practices. (1)  The following are defined as unfair methods of competition and unfair or deceptive acts or practices in the business of insurance:

(x) (I) (A)  DENYING, REFUSING TO ISSUE, REFUSING TO RENEW, REFUSING TO REISSUE, CANCELING, OR OTHERWISE TERMINATING AN INSURANCE POLICY OR RESTRICTING COVERAGE ON ANY PERSON SOLELY BECAUSE OF A CONVICTION FOR, OR BECAUSE OF POINTS ACCUMULATED AGAINST A DRIVER'S LICENSE FOR, A SPEEDING OFFENSE UNDER THE PROVISIONS OF PART 11 OF ARTICLE 4 OF TITLE 42, C.R.S., OTHER THAN TAKING PART IN A SPEED CONTEST UNDER SECTION 42­4­1105, C.R.S., IF THE OFFENSE DOES NOT INVOLVE AN ACCIDENT OR CLAIMS FOR PROPERTY DAMAGE OR BODILY INJURY; OR

(B)  ADDING ANY SURCHARGE OR RATING FACTOR TO A PREMIUM OF AN INSURANCE POLICY SOLELY BECAUSE OF A CONVICTION FOR, OR BECAUSE OF POINTS ACCUMULATED AGAINST A DRIVER'S LICENSE FOR, A SPEEDING OFFENSE UNDER THE PROVISIONS OF PART 11 OF ARTICLE 4 OF TITLE 42, C.R.S., OTHER THAN TAKING PART IN A SPEED CONTEST UNDER SECTION 42­4­1105, C.R.S., IF THE OFFENSE DOES NOT INVOLVE AN ACCIDENT OR CLAIMS FOR PROPERTY DAMAGE OR BODILY INJURY.

(II)  THE PROVISIONS OF THIS PARAGRAPH (x) SHALL NOT APPLY IF THE DRIVER'S LICENSE OF THE INSURED IS SUSPENDED OR REVOKED AS A RESULT OF THE SPEEDING OFFENSE, INCLUDING, BUT NOT LIMITED TO, A SUSPENSION BECAUSE OF ACCRUAL OF EXCESSIVE POINTS AGAINST THE INSURED'S LICENSE UNDER SECTION 42­2­127, C.R.S., OR A REVOCATION BECAUSE THE INSURED IS A HABITUAL OFFENDER UNDER PART 2 OF ARTICLE 2 OF TITLE 42, C.R.S.

SECTION 2.  Effective date ­ applicability. This act shall take effect July 1, 1997, and shall apply to offenses committed on or after said date.

SECTION 3.  Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.