Colorado Legislative Council Staff
NO FISCAL IMPACT
November 18, 1997
Senate Business Affairs
Will Meyer (866-4976)
TITLE: CONCERNING A PROHIBITION AGAINST ANY INSURER TAKING ADVERSE ACTIONS AGAINST A PERSON BECAUSE THE PERSON HAS NOT MAINTAINED MOTOR VEHICLE INSURANCE COVERAGE IN THE PAST.
Summary of Assessment
The provisions of this bill would make changes to the Motor Vehicle (“No Fault”) Insurance statutes. Currently, insurers can deny coverage, add a surcharge or rating factor to a premium for persons who have not obtained or maintained a motor vehicle insurance policy or certificate of self-insurance for any time period in the past.
This bill would prohibit insurers from denying or refusing to issue a motor vehicle insurance policy to a person, restricting insurance coverage of a person, or adding any surcharge or rating factor to the premium of any required motor vehicle coverage solely because the person did not obtain or maintain a motor vehicle policy or certificate of self-insurance for any time period in the past. The bill would exclude from this prohibition any person convicted of a driving offense that was committed in the last twelve months.
These changes would require the Division of Insurance to make an amendment to a current regulation. This would have a minimal impact on the workload of the division. This increase in workload could be absorbed by current staff, but may require re-prioritizing existing workload. This bill would not impact any other agency of the state, or unit of local government. Therefore, this bill is assessed as having no fiscal impact.
The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.