SENATE BILL 97088
BY SENATORS Congrove, Alexander, Powers, Arnold, Duke, Hernandez, Martinez, Mutzebaugh, Rizzuto, and Tebedo;
also REPRESENTATIVES Swenson, Arrington, and Paschall.
CONCERNING ALLOWING THE USE OF AN OPERATOR'S POLICY
OF LIABILITY INSURANCE FOR PURPOSES OF COMPLYING WITH THE MANDATORY
MOTOR VEHICLE INSURANCE LAWS.
Be it enacted by the General Assembly of the State
SECTION 1. Part
7 of article 4 of title 10, Colorado Revised Statutes, 1994 Repl.
Vol., as amended, is amended BY THE ADDITION OF A NEW SECTION
104706.5. Operator's policy
of insurance. (1) EXCEPT
AS OTHERWISE PROVIDED IN SUBSECTION (8) OF THIS SECTION, ANY NATURAL
PERSON MAY SATISFY THE REQUIREMENTS OF SECTION 104705
BY OBTAINING, IN LIEU OF AN OWNER'S POLICY OF INSURANCE, AN OPERATOR'S
POLICY OF LIABILITY INSURANCE THAT MEETS THE REQUIREMENTS OF THIS
SECTION AND THE REQUIREMENTS OF THIS PART 7 AND OF PART 6 OF ARTICLE
4 OF THIS TITLE.
(2) AN OPERATOR'S POLICY OF LIABILITY
INSURANCE SHALL PROVIDE COVERAGE, INCLUDING PERSONAL INJURY PROTECTION
COVERAGE, IN THE AMOUNTS REQUIRED PURSUANT TO SECTION 104706,
AND SHALL STATE, IN CONSPICUOUS TYPE FACE AND FONT ON THE FACE
OF THE POLICY, THAT:
(a) THE INSURER IS ONLY LIABLE UNDER THE
POLICY FOR LIABILITY OR DAMAGES INCURRED BY THE INSURED WHILE
THE NAMED INSURED IS THE OPERATOR OF A MOTOR VEHICLE OR WHILE
A MOTOR VEHICLE OWNED BY THE INSURED IS NOT BEING OPERATED BY
(b) THE POLICY DOES NOT PROVIDE COVERAGE
FOR ANY VICARIOUS LIABILITY IMPOSED ON THE OWNER OF THE MOTOR
VEHICLE AS A RESULT OF THE OPERATION BY ANOTHER PERSON OF A MOTOR
VEHICLE OWNED BY THE INSURED THAT IS INSURED UNDER AN OPERATOR'S
POLICY OF LIABILITY INSURANCE.
(c) THE COVERAGE PROVIDED BY THE POLICY
MAY NOT MEET THE REQUIREMENTS OF THE MANDATORY MOTOR VEHICLE INSURANCE
OR FINANCIAL RESPONSIBILITY LAWS OF OTHER STATES.
(3) NO OPERATOR'S POLICY OF LIABILITY
INSURANCE ISSUED PURSUANT TO THIS SECTION MAY BE DELIVERED OR
ISSUED FOR DELIVERY IN COLORADO UNLESS THE INSURED HAS SIGNED
A STATEMENT THAT APPEARS ON THE CONTRACT STATING THAT THE INSURED
HAS READ AND UNDERSTOOD THE POLICY AND ITS LIMITATIONS.
(4) AN OWNER OF A MOTOR VEHICLE THAT IS
REGISTERED OR REQUIRED TO BE REGISTERED IN COLORADO AND WHO HOLDS
AN OPERATOR'S POLICY OF LIABILITY INSURANCE SHALL NOT PERMIT ANOTHER
PERSON TO OPERATE SUCH MOTOR VEHICLE IF THE OWNER KNOWS OR SHOULD
KNOW THAT THE PERSON DOES NOT HAVE INSURANCE TO COVER SUCH OTHER
PERSON'S OPERATION OF SUCH MOTOR VEHICLE. IF A MOTOR VEHICLE
INSURED UNDER AN OPERATOR'S POLICY OF LIABILITY INSURANCE IS DRIVEN
BY A PERSON WHO DOES NOT HAVE IN EFFECT A COMPLYING POLICY AS
REQUIRED BY SECTION 104705, AND SUCH PERSON IS INVOLVED
IN AN ACCIDENT, THE OWNER OF SUCH MOTOR VEHICLE AND SUCH DRIVER
SHALL BE LIABLE FOR ANY LIABILITY OR DAMAGES ARISING OUT OF SUCH
PERSON'S USE OF SUCH MOTOR VEHICLE.
(5) AN OPERATOR'S POLICY OF LIABILITY
INSURANCE SHALL NOT PROVIDE COVERAGE FOR DAMAGES INCURRED WHILE
A PERSON OTHER THAN THE NAMED INSURED IS OPERATING A MOTOR VEHICLE.
(6) AN OPERATOR'S POLICY OF LIABILITY
INSURANCE MAY PROVIDE COVERAGE THAT APPLIES IN OTHER JURISDICTIONS
IF THE COVERAGE AVAILABLE PURSUANT TO THIS SECTION DOES NOT MEET
THE MANDATORY AUTOMOBILE INSURANCE REQUIREMENTS OF OTHER JURISDICTIONS.
(7) AN OPERATOR'S POLICY OF LIABILITY
INSURANCE SHALL PROVIDE COVERAGE FOR LIABILITY INCURRED BY THE
INSURED WHILE A MOTOR VEHICLE OWNED BY THE INSURED IS NOT BEING
OPERATED BY ANY PERSON.
(8) THIS SECTION DOES NOT APPLY TO A LESSOR,
DEALER, MANUFACTURER, REBUILDER, OR DISTRIBUTOR OF A MOTOR VEHICLE,
AN OWNER OF A FLEET, A COMMON, CONTRACT, OR PRIVATE MOTOR CARRIER,
OR ANY OTHER INDIVIDUAL WHO OWNS A MOTOR VEHICLE FOR USE IN THE
(9) AN INSURER WRITING POLICIES OF INSURANCE
PURSUANT TO THIS PART 7, OR PART 6 OF ARTICLE 4 OF THIS TITLE,
MAY OFFER AN OPERATOR'S POLICY OF INSURANCE THAT MEETS THE REQUIREMENTS
OF THIS SECTION.
SECTION 2. 423105
(2), Colorado Revised Statutes, 1993 Repl. Vol., as amended, is
amended to read:
423105. Application for registration tax. (2) Upon applying for a registration card, the owner of a motor vehicle shall receive a written notice that shall be printed on the application for registration, in type that is larger than the other information contained on the application for registration. Such notice shall state that motor vehicle insurance OR OPERATOR'S coverage is compulsory in Colorado, that noncompliance is a misdemeanor traffic offense, that the minimum penalty for such offense is a onehundreddollar fine, and that the maximum penalty for such offense is one year's imprisonment and a onethousanddollar fine, and that such owner shall be required as a condition of obtaining a registration card to sign the affirmation clause that appears on such card. The clause shall state, "I swear or affirm in accordance with section 2412102, C.R.S., under penalty of perjury that I now have in effect a complying policy of motor vehicle insurance INCLUDING AN OPERATOR'S POLICY pursuant to the "Colorado Auto Accident Reparations Act", part 7 of article 4 of title 10, C.R.S., or a certificate of selfinsurance to cover the vehicle OR OPERATOR OF THE VEHICLE for which this registration is issued, and I understand that such insurance must be renewed so that coverage is continuous.
Signature , Date
SECTION 3. Applicability.
This act shall apply to policies written on or after the effective
date of this act.
SECTION 4. Effective
date. This act shall take effect at 12:01 a.m. on the day
following the expiration of the ninetyday period after final
adjournment of the general assembly that is allowed for submitting
a referendum petition pursuant to article V, section 1 (3) of
the state constitution; except that, if a referendum petition
is filed against this act or an item, section, or part of this
act within such period, then the act, item, section, or part,
if approved by the people, shall take effect on the date of the
official declaration of the vote thereon by proclamation of the
Tom Norton Charles E. Berry
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
Joan M. Albi Judith M. Rodrigue
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
GOVERNOR OF THE STATE