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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0176.01 JLB SENATE BILL 98­108

STATE OF COLORADO

BY SENATOR Tebedo;

also REPRESENTATIVE Swenson.

BUSINESS AFFAIRS & LABOR

A BILL FOR AN ACT

CONCERNING MOTOR VEHICLE INSURANCE.

Bill Summary

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

Revises automobile insurance requirements as follows:

Repeals financial responsibility provisions requiring owners of motor vehicles to have a complying policies of insurance and to provide evidence of having such a policy to the director of the division of motor vehicles in the event of an accident.

Makes conforming amendments.

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

SECTION 1.  10­4­702, Colorado Revised Statutes, is amended to read:

10­4­702.  Legislative declaration. The general assembly declares that its purpose in enacting this part 7 is to avoid inadequate compensation to victims of automobile accidents to require BY REQUIRING registrants of motor vehicles in this state to procure insurance covering MAKE FINANCIAL ARRANGEMENTS ADEQUATE TO COVER legal liability arising out of ownership or use of such vehicles and also providing TO PROVIDE benefits to persons occupying such vehicles and to persons injured in accidents involving such vehicles.

SECTION 2.  10­4­705 (1) and (2), Colorado Revised Statutes, are amended to read:

10­4­705.  Coverage compulsory. (1)  Every owner of a motor vehicle who operates the motor vehicle on the public highways of this state or who knowingly permits the operation of the motor vehicle on the public highways of this state shall have in full force and effect a complying policy under the terms of this part 7 covering the said motor vehicle, and any owner who fails to do so shall be subject to the sanctions provided under section 42­4­1409 and section 42­7­301, C.R.S., of the "Motor Vehicle Financial Responsibility Act" MAKE FINANCIAL ARRANGEMENTS TO PROVIDE FOR PERSONAL AND PROPERTY LOSSES AND DAMAGES INCURRED BY SUCH OWNER AND THE PASSENGERS IN SUCH OWNER'S VEHICLE IN THE EVENT OF A MOTOR VEHICLE COLLISION. SUCH ARRANGEMENTS SHALL MEET THE FINANCIAL REQUIREMENT LEVELS DESCRIBED IN SECTION 10­4­706.

(2)  Any owner of a motor vehicle who operates the motor vehicle on the public highways of this state or who knowingly permits the operation of the motor vehicle on the public highways of this state who fails to have in full force and effect a complying policy covering said motor vehicle at the time of any accident, on account of which benefits under section 10­4­706 (1) (b) to (1) (e) or alternatively, as applicable, section 10­4­706 (2) or (3) would be payable, shall be personally liable for the payment of such benefits to the person for whom such payment would have been required, if such coverage had been in effect under the terms of section 10­4­707. Such an owner shall have all of the rights and obligations of any insurer under this part 7.

SECTION 3.  10­4­706, Colorado Revised Statutes, is REPEALED AND REENACTED, WITH AMENDMENTS, to read:

10­4­706.  Required coverage. (1)  EVERY PERSON USING A MOTOR VEHICLE IN THIS STATE SHALL MAKE FINANCIAL ARRANGEMENTS TO COVER PERSONAL AND PROPERTY LOSSES AND DAMAGES THAT MAY BE SUSTAINED BY SUCH PERSON AND THE PASSENGERS IN SUCH OWNER'S VEHICLE. SUCH ARRANGEMENTS SHALL MEET THE FINANCIAL REQUIREMENTS SET FORTH IN THIS SECTION. SUBJECT TO THE LIMITATIONS AND EXCLUSIONS AUTHORIZED BY THIS PART 7, THE MINIMUM COVERAGE REQUIRED FOR COMPLIANCE WITH THIS PART 7 IS AS FOLLOWS:

(a)  COVERAGE FOR BODILY INJURY OR DEATH ARISING OUT OF THE USE OF THE MOTOR VEHICLE TO A LIMIT, EXCLUSIVE OF INTEREST AND COSTS, OF TWENTY­FIVE THOUSAND DOLLARS TO ANY ONE PERSON IN ANY ONE ACCIDENT AND FIFTY THOUSAND DOLLARS TO ALL PERSONS IN ANY ONE ACCIDENT; AND

(b)  COVERAGE FOR PROPERTY DAMAGE ARISING OUT OF THE USE OF THE MOTOR VEHICLE TO A LIMIT, EXCLUSIVE OF INTEREST AND COSTS, OF FIFTEEN THOUSAND DOLLARS IN ANY ONE ACCIDENT.

SECTION 4.  10­4­712 (1), (2), and (3), Colorado Revised Statutes, are amended to read:

10­4­712.  Conditions and exclusions. (1)  The coverages A FINANCIAL ARRANGEMENT described in section 10­4­706, INCLUDING INSURANCE, may be subject to conditions and exclusions which THAT are not inconsistent with the requirements of this part 7.

(2)  The coverages A FINANCIAL ARRANGEMENT described in section 10­4­706, INCLUDING INSURANCE, may also be subject to exclusions where the injured person:

(a)  Sustains injury caused by his OR HER own intentional act; or

(b)  Is operating a motor vehicle as a converter without a good faith belief that he OR SHE is legally entitled to operate or use such vehicle.

(3) (a)  The coverages described in section 10­4­706 are conditioned upon the insurer offering coverages pursuant to section 10­4­609 (1).

(b)  The insurer shall be deemed to have complied with the requirements of section 10­4­609 (1) and the exclusion of the insured from uninsured motorist coverage shall be deemed valid if the named insured has rejected the uninsured motorist coverage in writing. Such exclusion shall be continuing until such time as the insured requests that the insurer provide uninsured motorist coverage. The insurer shall not have a duty to offer uninsured motorist coverage after receiving the insured's written request for exclusion even though:

(I)  The vehicles insured under the policy have changed; or

(II)  The policy is:

(A)  Reinstated;

(B)  Transferred;

(C)  Substituted;

(D)  Amended;

(E)  Altered;

(F)  Modified;

(G)  Replaced; or

(H)  Renewed.

(c)  The insurer shall be deemed to have complied with section 10­4­609 (1) and the insured's uninsured motorist coverage shall be deemed valid if the insurer has offered coverage at available levels and the insured has selected coverage of a certain value. The insurer shall not have a duty to offer changes in uninsured motorist coverage to the insured even though:

(I)  The vehicles covered under the policy have changed; or

(II)  The policy is:

(A)  Reinstated;

(B)  Transferred;

(C)  Substituted;

(D)  Amended;

(E)  Altered;

(F)  Modified;

(G)  Replaced; or

(H)  Renewed; except that if there is an increase in bodily injury liability limits and the limits of the uninsured motorist coverage would be less than such limits, the insurer shall offer new uninsured motorist coverage to the insured pursuant to section 10­4­609 (2).

SECTION 5.  10­4­719.7 (1) and (1.5), Colorado Revised Statutes, are amended to read:

10­4­719.7.  Refusal to write, changes in, cancellation, or nonrenewal of policies prohibited. (1)  No insurer shall cancel, fail to renew, refuse to write, 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 MOTOR VEHICLE INSURANCE policy because the applicant, insured, or any resident of the household of the applicant or insured has had an accident or accidents which are not the fault of such named applicant, insured, household member, or permissive user.

(1.5) (a)  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 MOTOR VEHICLE INSURANCE policy solely because the insured person has been convicted of an offense related to the failure to have in effect compulsory SUCH motor vehicle insurance or such person has been denied issuance of a motor vehicle registration for failure to have such insurance.

(b) (I)  No insurer shall refuse to write a complying MOTOR VEHICLE INSURANCE policy solely because of the claim or driving record of one or more but fewer than all of the persons residing in the household of the named insured.

(II)  An insurer shall offer to exclude any person by name pursuant to section 10­4­721 in the household if such person's driving record and claim experience would justify the refusal by such insurer to write a policy for such person if such person were applying in such person's own name and not as part of a household.

(III)  An insurer renewing a policy pursuant to subparagraph (II) of this paragraph (b) shall include as part of such renewal a written notice naming the party specifically excluded from coverage.

SECTION 6.  10­4­723, Colorado Revised Statutes, is amended to read:

10­4­723.  Effective date ­ applicability. This part 7 shall take effect April 1, 1974 ON THE EFFECTIVE DATE OF THIS SECTION, AS AMENDED, and shall apply with respect to automobile accidents occurring on or after April 1, 1974 SAID DATE.

SECTION 7.  13­21­102.5, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

13­21­102.5.  Limitations on damages for noneconomic loss or injury. (6)  NO OPERATOR OF A MOTOR VEHICLE WHO IS INJURED IN AN AUTOMOBILE ACCIDENT SHALL RECOVER NONECONOMIC DAMAGES UNLESS SUCH OPERATOR OR THE OWNER OF THE VEHICLE HAS MADE FINANCIAL ARRANGEMENTS PURSUANT TO SECTION 10­4­706.

SECTION 8.  25­3.5­303, Colorado Revised Statutes, is amended to read:

25­3.5­303.  Vehicular liability insurance required. No ambulance shall operate in this state unless it is covered by a complying MOTOR VEHICLE LIABILITY policy as defined in section 10­4­703, AS SET FORTH IN PART 4 OF TITLE 10, C.R.S.

SECTION 9. Repeal.  42­2­127 (5) (ee), Colorado Revised Statutes, is repealed as follows:

42­2­127.  Authority to suspend license ­ to deny license ­ type of conviction ­ points. (5)  Point system schedule:

Type of conviction Points

(ee)  Failure to maintain or show proof of insurance pursuant to section 42­4­1409 4

SECTION 10.  Repeal.  42­3­105 (2), Colorado Revised Statutes, is repealed as follows:

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 11.  42­3­112 (2), (3), and (4), Colorado Revised Statutes, are amended to read:

42­3­112.  Records of application and registration. (2)  The department, upon registering a vehicle, shall issue to the owner a registration card which THAT shall contain upon the face thereof the date issued, the registration number assigned to the owner and to the vehicle, the name and address of the owner, AND a notice, in type which is larger than the other information contained on the registration card, that ADEQUATE motor vehicle insurance coverage is FINANCIAL ARRANGEMENTS ARE 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 upon receipt of the registration card to sign the affirmation clause on such card which states "I swear or affirm under penalty of perjury that I now have in effect a complying policy of motor vehicle insurance 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 for which this registration is issued, and I understand that such insurance must be renewed so that coverage is continuous. Signature , Date .", a description of the registered vehicle, including the identification number thereof, and, with reference to every new vehicle sold in this state after January 1, 1932, the date of sale by the manufacturer or dealer to the person first operating such vehicle, and such other statement of facts as may be determined by the department.

(3)  Any notice for renewal of registration shall include a notice, in type which is larger than the other information contained in the notice, which THAT specifies that ADEQUATE motor vehicle insurance coverage is FINANCIAL ARRANGEMENTS ARE 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 renewed registration card and upon receipt of the registration card to sign the affirmation clause on such card which states "I swear or affirm under penalty of perjury that I now have in effect a complying policy of motor vehicle insurance 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 for which this registration is issued, and I understand that such insurance must be renewed so that coverage is continuous. Signature , Date ."

(4)  On and after January 1, 1991, the department shall notify all registered owners of the provisions and requirements of subsections (2) and (3) of this section.

SECTION 12.  42­7­102, Colorado Revised Statutes, is amended to read:

42­7­102.  Legislative declaration. The general assembly is acutely aware of the toll in human suffering and loss of life, limb, and property caused by negligence in the operation of motor vehicles in our state. Although it recognizes that this basic problem can be and is being dealt with by direct measures designed to protect our people from the ravages of irresponsible drivers, the general assembly is also very much concerned with the financial loss visited upon innocent traffic accident victims by negligent motorists who are financially irresponsible. In prescribing the sanctions and requirements of this article, it is the policy of this state to induce and encourage all motorists to provide for their financial responsibility for the protection of others and to assure the widespread availability to the insuring public of insurance protection against financial loss caused by negligent financially irresponsible motorists MAKE ADEQUATE FINANCIAL ARRANGEMENTS FOR MOTOR VEHICLE ACCIDENTS IN WHICH THEY ARE LIABLE.

SECTION 13.  42­7­103 (2), (6.5), (9), and (14), Colorado Revised Statutes, are amended, and the said 42­7­103 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:

42­7­103.  Definitions. As used in this article, unless the context otherwise requires:

(1.5)  "ADEQUATE FINANCIAL ARRANGEMENT" MEANS A LIABILITY POLICY, BOND, OR OTHER FINANCIAL ARRANGEMENT SUBJECT, IF THE ACCIDENT HAS RESULTED IN BODILY INJURY OR DEATH, TO A LIMIT, EXCLUSIVE OF INTEREST AND COSTS, OF NOT LESS THAN TWENTY­FIVE THOUSAND DOLLARS BECAUSE OF BODILY INJURY TO OR DEATH OF ONE PERSON IN ANY ONE ACCIDENT AND, SUBJECT TO SAID LIMIT FOR ONE PERSON, TO A LIMIT OF NOT LESS THAN FIFTY THOUSAND DOLLARS BECAUSE OF BODILY INJURY TO OR DEATH OF TWO OR MORE PERSONS IN ANY ONE ACCIDENT AND FOR PROPERTY DAMAGE ARISING OUT OF THE USE OF THE MOTOR VEHICLE TO A LIMIT, EXCLUSIVE OF INTEREST AND COSTS, OF FIFTEEN THOUSAND DOLLARS IN ANY ONE ACCIDENT.

(2)  "Automobile liability policy" or "bond" means a liability policy, or bond, subject, if the accident has resulted in bodily injury or death, to a limit, exclusive of interest and costs, of not less than twenty­five thousand dollars because of bodily injury to or death of one person in any one accident and, subject to said limit for one person, to a limit of not less than fifty thousand dollars because of bodily injury to or death of two or more persons in any one accident. and, if the accident has resulted in injury to or destruction of property, to a limit of not less than fifteen thousand dollars because of injury to or destruction of property of others in any one accident.

(6.5) (a)  "Evidence of insurance" means proof given by the insured in person to the department that the insured has a complying policy in full force and effect. Proof may be made through presentation of a copy of such complying policy or a card issued to the insured as evidence that a complying policy is in full force and effect.

(b)  For purposes of this subsection (6.5), "complying policy" means a policy of insurance as defined in section 10­4­703 (2), C.R.S.

(9)  "Motor vehicle liability policy", "operators' policy of liability insurance", or "financial responsibility bond" means a policy or bond certified as proof of financial responsibility for the future.

(14) (a)  "Proof of financial responsibility for the future", also referred to in this article as proof of financial responsibility, means proof of ability to respond in damages for liability, on account of accidents occurring after the effective date of said proof, arising out of the ownership, maintenance, or use of a motor vehicle, in the amount of twenty­five thousand dollars because of bodily injury to or death of one person in any one accident, and, subject to said limit for one person, in the amount of fifty thousand dollars because of bodily injury to or death of two or more persons in any one accident. and in the amount of fifteen thousand dollars because of injury to or destruction of property of others in any one accident.

(b)  For purposes of this title, the form known as the "SR­22" furnished to the department may be used as proof of financial responsibility in compliance with this article.

SECTION 14.  42­7­201 (2) (c) and (2) (e), Colorado Revised Statutes, are amended to read:

42­7­201.  Director to administer article. (2) (c)  If the person, for the protection of the public interest and safety, files or has filed with the director evidence of current liability insurance in the driver's name, or has made a deposit as provided in section 42­7­418, the request for hearing shall also postpone the date on which the affected person's license or nonresident's operating privilege would otherwise be suspended.

(e)  In any action for judicial review of the action of the director, the court, upon application for a hearing on the question of irreparable injury with three days' notice to the director of such hearing and upon a finding by the court at such hearing that irreparable injury to the affected person would otherwise result, may order that the filing of the action shall operate to postpone the effective date of the director's order or act, in which event the court may also impose the condition, for the protection of the public interest and safety, that the person bringing the action shall obtain and maintain during the pendency of the action an automobile liability policy or bond ADEQUATE FINANCIAL ARRANGEMENTS or deposit of security as provided in section 42­7­418. The procedure in all other respects upon review shall be in accordance with the applicable provision of section 24­4­106, C.R.S.

SECTION 15.  42­7­202 (1), (2), and (3), Colorado Revised Statutes, are amended to read:

42­7­202.  Report of accident required. (1)  The operator or owner of every motor vehicle which THAT is in any manner involved in an accident in which any person is killed or injured or in which damage to any property is sustained, within ten days after such accident, shall report the matter in writing to the director. unless the insurance information has been provided to law enforcement as required in section 42­4­1606 (4). If such operator is physically incapable of making such report and is not the owner of the motor vehicle involved, the owner of the motor vehicle involved in the accident shall, within ten days after learning of the accident, make such report. If the operator and owner are the same person and such person is physically incapable of making such report within the required ten­day period, such person may designate some other person to make the report on behalf of such person or shall file the report as soon as such person is able to do so.

(2)  The accident report required under this section, the form of which shall be prescribed by the director, shall contain information to enable the director to determine whether the requirements for the filing of security and proof of financial responsibility for the future are inapplicable by reason of the existence of insurance at the time of the accident or other exceptions. The operator or the owner of the motor vehicle involved in the accident shall make such additional reports relating thereto as the director requires.

(3)  The director may rely upon the accuracy of information as to insurance or bond contained in written statements required under part 3 of this article or under section 42­4­1606 unless and until the director has reason to believe that such information is erroneous.

SECTION 16.  42­7­301.5 (1) and (2), Colorado Revised Statutes, are amended to read:

42­7­301.5.  Proof of adequate financial arrangements. (1)  Any person who presents an altered or counterfeit letter or altered or counterfeit insurance identification card from an insurer or agent for the purpose of proving financial responsibility THAT SUCH PERSON HAS MADE ADEQUATE FINANCIAL ARRANGEMENTS for purposes of this article shall be in violation of this section and shall be punished by a fine of five hundred dollars. If such presentation is said person's second or subsequent offense, the fine shall be one thousand dollars and said person's uninsured motor vehicle shall be seized.

(2)  Any person who alters or creates a counterfeit letter or insurance identification card for another FOR THE PURPOSE OF PROVING THAT ADEQUATE FINANCIAL ARRANGEMENTS HAVE BEEN MADE shall be punished by a fine of five hundred dollars. If such alteration or creation is said person's second or subsequent offense, the fine shall be one thousand dollars.

SECTION 17.  42­7­303, Colorado Revised Statutes, is amended to read:

42­7­303.  Duration of suspension. (1)  The license or nonresident's operating privilege suspended under sections SECTION 42­7­202 and 42­7­301 shall remain so suspended and not be renewed, nor shall any such license be issued to such person, unless there is filed with the director evidence satisfactory to the director that such person has been released from liability, has entered into a contract used as security pursuant to section 42­7­301 (7), or has been finally adjudicated not liable, or AND until THE PERIOD OF SUCH SUSPENSION IS SATISFIED OR VACATED.

(a)  Such person deposits and files or there has been deposited and filed on behalf of such person the security and proof of financial responsibility for the future required under section 42­7­301; or

(b)  Three years have elapsed following the date of such accident and evidence satisfactory to the director has been filed with the director that during such period no action for damages arising out of such accident has been instituted, and such person has filed or then files and maintains proof of financial responsibility for the future as provided in section 42­7­408; except that a contract used as security pursuant to section 42­7­301 (7) may provide for a different period of time; or

(c)  Three years have elapsed since the failure to timely cure any default, after notice, under a contract used as security pursuant to section 42­7­301 (7) and evidence satisfactory to the director has been filed with the division showing that no civil action to enforce the contract has been filed during such period of time.

(2)  If the director determines that the driver is not responsible for any damages to any other party as a result of the accident, the driver may:

(a)  Prevent a suspension from occurring by filing future proof of liability insurance pursuant to section 42­7­408; or

(b)  Reinstate a license, if a suspension has already occurred, by filing future proof of liability insurance pursuant to section 42­7­408 and paying the reinstatement fee.

SECTION 18.  42­7­402 (1), Colorado Revised Statutes, is amended to read:

42­7­402.  Suspension, duration, bankruptcy. (1)  The suspension required in section 42­7­401 shall remain in effect and no new license shall be issued to such person unless and until such judgment is satisfied or vacated or execution therein stayed, and proof of financial responsibility given, except under the conditions stated in this article.

SECTION 190  42­7­403 (1), Colorado Revised Statutes, is amended to read:

42­7­403.  Sufficiency of payments. (1)  Every judgment referred to in this article and for the purposes of this article shall be deemed satisfied:

(a)  When twenty­five thousand dollars has been credited upon any judgment rendered in excess of that amount for or on account of bodily injury to or the death of one person as the result of any one accident; or

(b)  When, subject to said limit of twenty­five thousand dollars as to one person, the sum of fifty thousand dollars has been credited upon any judgment rendered in excess of that amount for or on account of bodily injury to or the death of more than one person as the result of any one accident; or

(c)  When fifteen thousand dollars has been credited upon any judgment rendered in excess of that amount for damage to property of others in excess of one hundred dollars as a result of any one accident; or

(d)  When six years have elapsed since the date that such judgment became final. or

(e)  When three years, or such other period as authorized pursuant to section 42­7­408 (1), have elapsed since the judgment debtor gives proof of financial responsibility; except that this paragraph (e) shall not apply to any judgment debtor subject to paragraph (d) of this subsection (1).

SECTION 200  42­7­404 (1), Colorado Revised Statutes, is amended to read:

42­7­404.  Payment of judgment in installments. (1)  The director shall not suspend a license and shall restore any suspended license following nonpayment of a final judgment when the judgment debtor gives proof of financial responsibility and obtains an order from the trial court in which such judgment was rendered permitting the payment of such judgment in installments of not less than twenty­five dollars per month, while the payment of any said installment is not in default.

SECTION 210  42­7­405, Colorado Revised Statutes, is amended to read:

42­7­405.  Suspension upon second judgment. After one judgment is satisfied and proof of financial responsibility is given as required in this article and another such judgment is rendered against the judgment debtor for any accident occurring prior to the date of the giving of said proof SUCH JUDGMENT IS SATISFIED and such person fails to satisfy the latter judgment within the amounts specified in this article within thirty days after the same becomes final, the director shall again suspend the license of such judgment debtor and shall not renew the same nor issue to the judgment debtor any license while such latter judgment remains in effect and unsatisfied within the amounts specified in this article.

SECTION 220  The introductory portion to 42­7­414 (2) and 42­7­414 (2) (g), Colorado Revised Statutes, are amended to read:

42­7­414.  Requirements to be complied with. (2)  Every motor vehicle liability policy and every operator's policy of liability insurance accepted as proof under this article shall be subject to the following provisions whether or not contained therein:

(g)  When any insurance carrier authorized to do business within the state of Colorado issues a policy of automobile insurance insuring against bodily injury, death, or injury to or destruction of property, or showing financial responsibility, except a binder, a complete copy of the insurance policy shall be transmitted to the purchaser within thirty days of AFTER the purchase thereof; except that, when such policy is renewed, only a copy of the notice of renewal shall be required. Mailing of the copy of the policy to the address of the purchaser as given at the time of purchase shall be deemed to be a transmittal as required by this section.

SECTION 230  42­7­417 (1), Colorado Revised Statutes, is amended to read:

42­7­417.  Article not to affect other policies. (1)  This article shall not be held to apply to or affect policies of automobile insurance against liability which THAT may be required by any other law of this state. and such policies, if endorsed to conform to the requirements of this article, shall be accepted as proof of financial responsibility when required under this article.

SECTION 240  42­7­502 (1) and (4), Colorado Revised Statutes, are amended to read:

42­7­502.  Action against nonresident ­ reciprocity with other states. (1)  All of the provisions of this article shall apply to any person who is not a resident of this state, and if such nonresident has been convicted of an offense which THAT would require the suspension or revocation of the license of a resident, or if such nonresident has failed to satisfy a judgment within thirty days after the same became final which THAT would require suspension or revocation under this article in respect to a resident, then in either such event such nonresident shall not operate any motor vehicle in this state, and the director shall not issue to such nonresident any license unless and until such nonresident gives proof of financial responsibility and satisfies any such judgment as is required with respect to a resident of this state.

(4)  Upon receipt of certification that the operating privilege of a resident of this state has been suspended or revoked in any such other state pursuant to a law providing for its suspension or revocation for failure to deposit security for the payment of judgments arising out of a motor vehicle accident or for failure to deposit security and furnish a statement evidencing that the resident is insured under an automobile liability insurance policy or bond or for failure to file and maintain proof of financial responsibility, under circumstances which would require the director to suspend a nonresident's operating privilege had the accident occurred in this state, the director shall suspend the license of such resident. Such suspension shall continue until such resident furnishes evidence of compliance with the law of such other state relating to the deposit of such security and until such resident furnishes the statement evidencing automobile liability insurance or a bond, or, as the case may be, files proof of financial responsibility, if required by such law.

SECTION 250  42­7­504, Colorado Revised Statutes, is amended to read:

42­7­504.  Matters not to be evidence in litigation. (1)  Except as provided in subsection (2) of this section, neither the report required by section 42­7­202, any action taken by the director pursuant to this article, any judgment or court decision on appeal therefrom, AND the findings, if any, of the director upon which said action is based nor the security deposited, statement evidencing automobile liability insurance or bond or proof of financial responsibility filed as provided in this article shall NOT be referred to in any way nor be any evidence of the negligence or due care of either party at the trial of any action at law to recover damages or in any criminal proceeding arising out of a motor vehicle accident. This section shall not be applicable with respect to any action brought by the director to enforce the provisions of this article.

(2)  For the purposes of any civil trial, civil hearing, or arbitration held in relation to uninsured or underinsured motorist insurance coverage where the question of the existence of automobile liability insurance is an issue or when the amount of such insurance is an issue, WITH RESPECT TO WHETHER THERE IS AN ADEQUATE FINANCIAL ARRANGEMENT, the director shall issue, upon request, a certificate under seal evidencing the information contained in reports filed pursuant to section 42­7­202. The certificate shall contain the motor vehicle operator's name, address, date of birth, and driver's license number AND the date of the accident. and a statement indicating whether or not the records indicate that the owner or operator had in effect at the time of the accident an effective automobile liability policy and, if such a policy was in effect, the amount of coverage, the name of the insurer, and the number of the policy. Such certificate shall be prima facie evidence of the facts contained therein. In any civil trial, civil hearing, or arbitration held in relation to uninsured or underinsured motorist insurance coverage, if the certificate indicates that no report has been filed within the prescribed time, it shall be presumed in any civil trial, civil hearing, or arbitration held in relation to uninsured or underinsured motorist insurance coverage that the owner or operator did not have any automobile liability insurance. The director shall collect for each such certificate an amount sufficient to defray the costs of administration of this section. Any such amount shall be included as a cost of the action.

SECTION 260  42­7­505, Colorado Revised Statutes, is amended to read:

42­7­505.  Forging ability to respond in damages. Any person who forges or without authority signs any evidence of ability to respond in damages or who furnishes the director with a false statement evidencing that such person is insured under an automobile liability policy or bond, as required by the director in the administration of this article, is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not less than one hundred dollars nor more than one thousand dollars, or by imprisonment in the county jail for not more than ninety days, or by both such fine and imprisonment.

SECTION 270  42­4­1606 (4), Colorado Revised Statutes, is amended to read:

42­4­1606.  Duty to report accidents. (4) (a) (I)  It is the duty of all law enforcement officers who receive notification of traffic accidents within their respective jurisdictions or who investigate such accidents either at the time of or at the scene of the accident or thereafter by interviewing participants or witnesses to submit reports of all such accidents to the department on the form provided including insurance information received from any driver, within five days of AFTER the time they receive such information or complete their investigation. The law enforcement officer shall indicate in such report whether the inflatable restraint system in the vehicle, if any, inflated and deployed in the accident. For the purposes of this section, "inflatable restraint system" has the same meaning as set forth in 49 C.F.R. sec. 507.208 S4.1.5.1 (b).

(II)  If a report filed by a law enforcement officer pursuant to this section specifies that the driver was not insured at the time of the accident, the director may take appropriate action against such driver in accordance with the provisions of section 42­7­202.

(b)  The law enforcement officer shall not be required to complete an investigation or file an accident report:

(I)  In the case of a traffic accident involving a motor vehicle, if the law enforcement officer has a reasonable basis to believe that damage to the property of any one person does not exceed one thousand dollars and if the traffic accident does not involve injury to or death of any person; except that the officer shall complete an investigation and file a report if specifically requested to do so by one of the participants or if one of the participants cannot show proof of insurance; or

(II)  In the case of a traffic accident not involving a motor vehicle, if the traffic accident does not involve serious bodily injury to or death of any person.

SECTION 280  Repeal.  10­4­609, 10­4­703 (2) and (11), 10­4­706.5, 10­4­707.5, 10­4­710, 10­4­713, 10­4­714, 10­4­715, 10­4­716, 42­2­127.7, 42­4­1409, 42­4­1410, 42­7­301, 42­7­302, 42­7­304, 42­7­406, 42­7­408, 42­7­409, 42­7­410, 42­7­411, 42­7­412, 42­7­413, 42­7­415, 42­7­416, 42­7­418, 42­7­419, 42­7­420, 42­7­421, 42­7­422, 42­7­501, and part 6 of article 7 of title 42, Colorado Revised Statutes, are repealed.

SECTION 290  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 motor vehicle accidents occurring on or after the applicable effective date of this act.