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SENATE BILL 98012
BY SENATORS Tebedo, Bishop, Congrove, Hernandez, Linkhart, Martinez, Matsunaka, Perlmutter, Phillips, Powers, Rupert, and Thiebaut;
also REPRESENTATIVES Swenson, Anderson, Mace, and
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.
Be it enacted by the General Assembly of the State
SECTION 1. 104719.7
(1.5) (a), Colorado Revised Statutes, is amended to read:
104719.7. Refusal to write,
changes in, cancellation, or nonrenewal of policies prohibited.
(1.5) (a) (I) No insurer shall cancel, fail
to renew, reclassify an insured under, reduce coverage under,
unless the reduction is part of a general reduction in coverage
filed with the commissioner, or increase the premium for, unless
the increase is part of a general increase in premiums filed with
the commissioner, any complying policy solely because the insured
person has been convicted of an offense related to the failure
to have in effect compulsory motor vehicle insurance or such person
has been denied issuance of a motor vehicle registration for failure
to have such insurance.
(II) UNLESS ACTUARIAL JUSTIFICATION IN
SUPPORT OF THE INSURER'S ACTION THAT HAS BEEN FILED WITH THE COMMISSIONER
DEMONSTRATES THAT THERE IS AN INCREASE IN RISK, NO INSURER SHALL
REFUSE TO WRITE A POLICY FOR A NEW APPLICANT, SURCHARGE THE PREMIUM
OF A NEW APPLICANT, OR PLACE A NEW APPLICANT IN A HIGHERPRICED
PROGRAM OR PLAN BASED SOLELY UPON:
(A) THE FACT THAT THE APPLICANT HAD NO
(B) THE IDENTITY OF THE APPLICANT'S PRIOR
(C) THE APPLICANT'S PRIOR TYPE OF COVERAGE,
INCLUDING ASSIGNED RISK OR RESIDUAL MARKET COVERAGE OR ANY PLAN
OTHER THAN A PREFERRED PLAN.
(III) AN INSURER MAY USE INDUSTRYWIDE
DATA IN ITS ACTUARIAL JUSTIFICATION UNDER SUBPARAGRAPH (II) OF
THIS PARAGRAPH (a).
(IV) NO INSURER SHALL REFUSE TO WRITE
A POLICY FOR A NEW APPLICANT, SURCHARGE THE PREMIUM OF A NEW APPLICANT,
OR PLACE A NEW APPLICANT IN A HIGHERPRICED PROGRAM OR PLAN
SOLELY BECAUSE THE APPLICANT HAD NO PRIOR INSURANCE IF THE APPLICANT
WAS NOT REQUIRED TO HAVE INSURANCE UNDER SECTION 104705
OR UNDER A SIMILAR LAW IN ANOTHER STATE.
SECTION 2. Effective date applicability. (1) 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 governor.
(2) The provisions of this act shall apply to all policies of motor vehicle insurance issued on or after the applicable effective date of this act.
Tom Norton Charles E. Berry
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
Patricia K. Dicks Judith M. Rodrigue
ASSISTANT SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
GOVERNOR OF THE STATE