BY SENATOR Powers;
also REPRESENTATIVE Paschall.
CONCERNING CLARIFYING THAT PERSONS WHOSE BUSINESS
CONSISTS PRIMARILY OF RENTING MOTOR VEHICLES FOR TRANSPORTATION
PURPOSES NEED NOT BE LICENSED UNDER STATUTES GOVERNING LICENSURE
OF PERSONS TRANSACTING INSURANCE BUSINESS.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. Legislative declaration.
(1) The general assembly finds, determines, and declares
that:
(a) This act is necessary to clarify that
motor vehicle rental companies are not and have not been engaged
in the transaction of "insurance business" within the
intended meaning of sections 103105 and 103903,
Colorado Revised Statutes.
(b) The passage of this act, in and of
itself, should not be construed to imply that any act or practice
that took place before the effective date of this act and that
did not comply with the restrictions in this act constituted the
transaction of insurance business.
(c) This act shall be liberally construed
to effectuate its purpose.
SECTION 2. 101102
(8.5), Colorado Revised Statutes, is amended, and the said 101102
is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:
101102. Definitions.
As used in this title, unless the context otherwise requires:
(8.3) "MOTOR VEHICLE RENTAL AGREEMENT"
MEANS AN AGREEMENT FOR THE RENTAL OF A MOTOR VEHICLE FOR TRANSPORTATION
PURPOSES, FOR A PERIOD OF NO MORE THAN NINETY DAYS, IN RETURN
FOR A FEE THAT IS CALCULATED ON A DAILY, WEEKLY, OR MONTHLY BASIS.
(8.5) "Motor vehicle rental company"
means an entity that is in the business of renting, PURSUANT TO
MOTOR VEHICLE RENTAL AGREEMENTS, motor vehicles to
any person for transportation purposes for a fee that is calculated
pursuant to a rental agreement that is known, for purposes of
this title, as a "motor vehicle rental agreement"
THAT DO NOT COME WITHIN THE DEFINITION OF A COMMERCIAL MOTOR VEHICLE
AS SET FORTH IN SECTION 422402 (4), C.R.S.
SECTION 3. 102105
(1), Colorado Revised Statutes, is amended BY THE ADDITION OF
A NEW PARAGRAPH to read:
102105. Insurance producer
exemption from definition. (1)
Notwithstanding section 102103 (6), "insurance
producer" does not include the following:
(g) OFFICERS OR EMPLOYEES OF A MOTOR VEHICLE
RENTAL COMPANY THAT OFFERS COVERAGE IN CONNECTION WITH AND INCIDENTAL
TO THE RENTAL OF MOTOR VEHICLES UNDER MOTOR VEHICLE RENTAL AGREEMENTS,
SO LONG AS SUCH COVERAGE IS:
(I) OFFERED AT THE POINT OF THE RENTAL
TRANSACTION OR BY PRESELECTION OF COVERAGE IN MASTER, CORPORATE,
GROUP, OR INDIVIDUAL RENTAL AGREEMENTS;
(II) LIMITED IN SCOPE TO THE PARTIES TO
SUCH MOTOR VEHICLE RENTAL AGREEMENTS AND TO OTHER AUTHORIZED DRIVERS
OR OCCUPANTS OF THE VEHICLES BEING RENTED;
(III) LIMITED IN DURATION TO COVERAGE
OF DAMAGES INCURRED AS A RESULT OF EVENTS OCCURRING DURING THE
RENTAL PERIOD; AND
(IV) FOR TRADITIONALLY RECOGNIZED RISKS
ASSOCIATED WITH MOTOR VEHICLE OPERATION AND TRAVEL, INCLUDING,
WITHOUT LIMITATION, PERSONAL INJURY OR DEATH, PERSONAL LIABILITY
AND PROPERTY DAMAGE, COLLISION, DAMAGE TO OR LOSS OF PERSONAL
EFFECTS, ROADSIDE ASSISTANCE, AND EMERGENCY REPAIRS.
SECTION 4. 103903
(2), Colorado Revised Statutes, is amended BY THE ADDITION OF
A NEW PARAGRAPH to read:
103903. Definition of transacting
insurance business. (2) The
provisions of this section do not apply to:
(j) THE SALE OF AUTHORIZED INSURANCE BY
AGENTS OF A MOTOR VEHICLE RENTAL COMPANY IF SUCH SALE COMPLIES
WITH THE LIMITATIONS SET FORTH IN SECTION 102105 (1)
(g).
SECTION 5. 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.
____________________________ ____________________________
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
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE
OF COLORADO