C.R.S. § 42-7-101 Short title
42-7-101. Short title. This article shall be known and may be cited as the "Motor Vehicle Financial Responsibility Act".
Motor Vehicle Financial Responsibility Law
C.R.S. tit. 42, art. 7
in effectC.R.S. § 42-7-102 Legislative declaration
42-7-102. Legislative declaration. (1) 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.
(2) (a) The general assembly hereby finds that motor vehicle accidents cause a substantial economic impact in lost wages, medical bills, and property destruction exacerbated by the following:
(I) Some negligent motorists are uninsured or flee the scene of an accident.
(II) Negligent motorists often attempt to avoid financial responsibility by means such as fleeing the state, concealing their whereabouts, or failing to update the address on their driver's license with the department of revenue, thereby frustrating service of process and preventing the innocent victim from accessing either the negligent driver's liability insurance policy or the uninsured motorist coverage the victim has purchased.
(III) When innocent traffic accident victims cannot access either the negligent driver's automobile liability policy or their own uninsured motorist coverage, the burden of the uncompensated losses are borne by the taxpayer in the form of taxes for medicaid, by trauma facilities in the form of uncompensated hospital-related costs, and by the innocent victim.
(b) (I) The state of Colorado encourages the widespread availability of uninsured or underinsured motorist insurance by requiring every motor vehicle liability policy delivered or issued in this state to contain uninsured motorist coverage unless the named insured rejects such coverage in writing.
(II) Because insurance benefits have been paid for by either the negligent driver or the innocent victim for the purpose of compensating the innocent victim for injuries or losses, the general assembly declares that it is necessary to simplify the process for an innocent victim to access the negligent driver's liability insurance policy or his or her own uninsured motorist coverage in order to prevent the burden from being borne by the taxpayer or the health-care system.
(c) Therefore, the general assembly declares that the policy of Colorado is that all motor vehicle liability policies shall require policyholders of an automobile liability policy to appoint their insurance carrier as an agent for the purpose of service of process in certain limited instances in accordance with section 42-7-414 (3), and to deem a defendant to be uninsured for purposes of uninsured or underinsured motorist coverage if the court deems service on the defendant's insurance company to be ineffective or insufficient.
C.R.S. § 42-7-103 Definitions
42-7-103. Definitions. As used in this article 7, unless the context otherwise requires:
(1) "Accident" means a motor vehicle accident occurring on public or private property within this state.
(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 twenty-five 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.
(3) "Conviction" means conviction in any court of record or municipal court, and such conviction shall include a plea of guilty, a plea of nolo contendere accepted by the court, the forfeiture of any bail or collateral deposited to secure a defendant's appearance in court which forfeiture has not been vacated, and the acceptance and payment of a penalty assessment under the provisions of section 42-4-1701 or under the similar provisions of any town or city ordinance.
(4) "Department" means the department of revenue acting directly or through its duly authorized officers and agents.
(5) "Director" means the executive director of the department of revenue.
(6) "Driver" means every person who is in actual physical control of a motor vehicle upon a highway.
(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. A card issued to the insured as evidence that a complying policy is in full force and effect may be produced in either paper or electronic format. Acceptable electronic formats include display of electronic images on a cellular phone or any other type of portable electronic device.
(b) For purposes of this subsection (6.5), "complying policy" means a policy of insurance as required by part 6 of article 4 of title 10, C.R.S.
(7) "License" means any license, temporary instruction permit, or temporary license issued under laws of this state pertaining to the licensing of persons to operate motor vehicles, or, with respect to any person not licensed, the term means any operating privilege or privileges to apply for such license.
(8) (a) "Motor vehicle" means a vehicle that is self-propelled, including trailers and semitrailers designed for use with such vehicles and every vehicle that is propelled by electric power obtained from overhead trolley wires but not operated upon rails.
te motor vehicles, or, with respect to any person not licensed, the term means any operating privilege or privileges to apply for such license.
(8) (a) "Motor vehicle" means a vehicle that is self-propelled, including trailers and semitrailers designed for use with such vehicles and every vehicle that is propelled by electric power obtained from overhead trolley wires but not operated upon rails.
(b) "Motor vehicle" does not include an electric scooter, as defined in section 42-1-102.
(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.
(10) "Nonresident" means every person who is not a resident of this state.
(11) "Nonresident's operating privilege" means the privilege conferred upon a nonresident by the laws of this state pertaining to the operation by the nonresident of a motor vehicle.
(12) "Owner" means a person who holds the legal title of the vehicle; or in the event a vehicle is the subject of an agreement for the conditional sale or lease thereof with the right of purchase upon performance of the conditions stated in the agreement and with an immediate right of possession vested in the conditional vendee or lessee, or in the event a mortgagor of a vehicle is entitled to possession, then such conditional vendee or lessee or mortgagor shall be deemed the owner for the purpose of this article.
(13) "Person" means every natural person, firm, partnership, association, or corporation.
(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 twenty-five 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 "SR-22" furnished to the department may be used as proof of financial responsibility in compliance with this article.
(15) "State" means any state of the United States, the District of Columbia, or any province of Canada.
(16) (a) "Transportation contract" means a contract, agreement, or understanding, whether written or oral, express or implied, between a motor carrier and another party regarding:
(I) The transportation of property by motor vehicle for compensation or hire;
(II) Entrance on property for the purpose of loading, unloading, or transporting property by motor vehicle for compensation or hire; or
(III) Access or services incidental or related to an activity described in subparagraph (I) or (II) of this paragraph (a).
(b) "Transportation contract" does not include:
(I) A contract, subcontract, or agreement that concerns or affects transportation involving a railroad;
(II) The uniform intermodal interchange and facilities access agreement administered by the intermodal association of North America; or
(III) Any other agreement providing for the interchange, use, or possession of an intermodal chassis or container or other intermodal equipment.
C.R.S. § 42-7-201 Director to administer article
42-7-201. Director to administer article. (1) The director shall administer and enforce the provisions of this article and may make rules and regulations in writing necessary for the administration of this article.
(2) (a) The director shall provide for a hearing upon request of any person affected by an order or act of the director under the provisions of this article. Such hearing need not be a matter of record.
(b) A request for a hearing, made within the twenty-day period prescribed in section 42-7-301 (3) and (4), shall operate during the pendency of such hearing to postpone the effective date of any order or act of the director pursuant to this article.
(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 42-7-418, 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.
(d) The decision as rendered by the director upon a hearing, or an order or act of the director when no hearing is requested, shall be final unless the affected person seeks judicial review.
(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 or deposit of security as provided in section 42-7-418. The procedure in all other respects upon review shall be in accordance with the applicable provision of section 24-4-106, C.R.S.
C.R.S. § 42-7-202 Report of accident required
42-7-202. Report of accident required. (Repealed)
C.R.S. § 42-7-301 Security and proof of financial responsibility for the future required under certain circumstances
42-7-301. Security and proof of financial responsibility for the future required under certain circumstances. (1) Unless exempt under section 42-7-302, an operator or owner named in an accident report required to be filed pursuant to section 42-4-1606 shall file with the director, according to the procedure provided by this section, both:
(a) Security, in an amount specified after consideration of the accident report and written substantiation of such report as provided in paragraph (b) of subsection (3) of this section, which is sufficient to satisfy any judgments for damages or injuries resulting from the accident as may be recovered against such operator or owner but which in no event shall exceed the sum of thirty-five thousand dollars; and
(b) Proof of financial responsibility for the future.
(2) Based upon a report filed pursuant to section 42-4-1606, the director shall determine whether an operator or owner is required to comply with the provisions of this article and, if so, shall:
(a) Within fifteen days after receipt of the accident report, inform each such operator and each such owner of such requirement and that the operator or owner's license or nonresident's operating privilege will be suspended if the operator or owner fails to comply with the provisions of this article;
(b) Within sixty days after receipt of the accident report, send written notice of the requirement of filing security and proof of financial responsibility for the future to each such owner and each such operator at his or her last-known address, by first-class mail pursuant to section 42-2-119 (2).
(3) The notice specified in paragraph (b) of subsection (2) of this section shall state that:
(a) The license or nonresident's operating privilege of the person so notified is subject to suspension and shall be suspended unless such person, within twenty days after the mailing of such notice by the director, establishes that the requirements of this section are not applicable to such person or that such person previously filed or then files both security and proof of financial responsibility for the future as provided in paragraphs (a) and (b) of subsection (1) of this section.
(b) Any person having a claim for property damage or personal injury may be required by the director to substantiate such claim by written statement sworn to by a person experienced in estimating the cost of repairing the property damaged and a written report as to the personal injury sworn to by a licensed physician.
(c) The person notified is entitled to a hearing and judicial review as provided in section 42-7-201.
(d) The date on which such person's license or nonresident's operating privilege would otherwise be suspended shall be postponed during the pendency of such hearing if the request for a hearing is made within twenty days after the mailing of said notice and if the person files security and evidence of current liability insurance in the respondent's name.
(4) Upon expiration of such twenty-day period without a request for hearing or compliance with the contents of the notice as specified in subsection (3) of this section, such person's license or nonresident's operating privilege shall be suspended unless and until such person files security and proof of financial responsibility for the future as provided in paragraphs (a) and (b) of subsection (1) of this section.
(5) When no accident report is filed or when erroneous or incomplete information is given, the director, with regard to the matters set forth in this article, shall, after receipt of correct information with respect to said matters, take whatever appropriate action is indicated, consistent with the provisions of this article.
s provided in paragraphs (a) and (b) of subsection (1) of this section.
(5) When no accident report is filed or when erroneous or incomplete information is given, the director, with regard to the matters set forth in this article, shall, after receipt of correct information with respect to said matters, take whatever appropriate action is indicated, consistent with the provisions of this article.
(6) No policy or bond shall be effective under this section unless issued by an insurance company or surety company authorized to do business in this state, but the surety requirements of this section may be satisfied by evidence of a savings account, deposit, or certificate of deposit meeting the requirements of section 11-35-101, C.R.S. However, if a motor vehicle was not registered in this state, or if a motor vehicle was registered elsewhere than in this state at the effective date of the policy or bond, or the most recent renewal thereof, such policy or bond shall not be effective under this section unless the insurance company or surety company, if not authorized to do business in this state, executes a power of attorney authorizing the director to accept, on its behalf, service of notice or process in any action upon such policy or bond arising out of such accident.
(7) (a) (I) The security required pursuant to paragraph (a) of subsection (1) of this section may, in whole or in part, take the form of a contract between a person having a claim for property damage or personal injury and the operator or owner. Any such contract shall require notice by first-class mail to any obligor in default at the obligor's last-known address and allowing at least a ten-day period after mailing for the obligor to cure the default before remedies become available.
(II) The director shall prescribe the form of any contract authorized by subparagraph (I) of this paragraph (a).
(b) The director shall immediately suspend the license of a person obligated under a contract used as security pursuant to paragraph (a) of this subsection (7), upon receipt of evidence from the creditor in the form of an affidavit that:
(I) The obligor has defaulted on any payment obligation under the contract;
(II) Notice of the default has been sent to the obligor by certified mail; and
(III) The obligor has failed to cure the default within fifteen days after the date of mailing of the notice.
C.R.S. § 42-7-301.5 Proof of financial responsibility
42-7-301.5. Proof of financial responsibility. (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 for purposes of this article 7 shall be in violation of section 18-5-104, and the minimum fine shall be one thousand dollars.
(2) Any person who alters or creates a counterfeit letter or insurance identification card for another violates section 18-5-104 and shall be punished by a minimum fine of one thousand dollars.
(3) It shall be an affirmative defense that the person did not know or could not have known that the presented document was altered or counterfeit.
(4) Repealed.
C.R.S. § 42-7-302 Exemptions from requirement of filing security and proof of financial responsibility for the future
42-7-302. Exemptions from requirement of filing security and proof of financial responsibility for the future. (1) The requirement of filing security and proof of financial responsibility for the future pursuant to section 42-7-301 shall not apply:
(a) To any person who qualifies as a self-insurer under section 42-7-501 or who operates a motor vehicle for a self-insurer under section 42-7-501;
(b) To any person who has been released from liability, or finally adjudicated not liable, prior to the date the director would otherwise suspend a license or a nonresident's operating privilege under section 42-7-301 (4);
(c) To the state of Colorado or any political subdivision thereof or any municipality therein;
(d) To the operation by any employee of the federal government of any motor vehicle while acting within the scope of such employment;
(e) Repealed.
(f) To the operator or owner if such owner had in effect at the time of such accident an automobile liability policy with respect to the motor vehicle involved in such accident;
(g) To the operator, if not the owner of such motor vehicle, if there was in effect at the time of such accident an automobile liability policy or bond with respect to the operation of motor vehicles not owned by that person;
(h) To the operator or owner if the liability of such operator or owner for damages resulting from such accident is, in the judgment of the director, covered by any other form of liability insurance policy or bond or deposit as provided in section 42-7-418;
(i) To the owner of a motor vehicle if at the time of the accident the vehicle was being operated without the owner's express or implied permission, or was parked by a person who had been operating such motor vehicle without such permission.
(2) In determining whether any person is exempt from the requirements of section 42-7-301, the director shall rely upon reports or other information submitted and, when requested by any person affected by an accident to make a finding of fact, shall consider the report of the investigating officer, if any, the accident reports, and any affidavits of persons having knowledge of the facts.
C.R.S. § 42-7-303 Duration of suspension
42-7-303. Duration of suspension. (1) The license or nonresident's operating privilege suspended under section 42-7-301 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 42-7-301 (7), or has been finally adjudicated not liable, or until:
(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 42-7-301; 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 42-7-408; except that a contract used as security pursuant to section 42-7-301 (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 42-7-301 (7) and evidence satisfactory to the director has been filed with the department showing that no civil action to enforce the contract has been filed during such period.
(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 42-7-408; or
(b) Reinstate a license, if a suspension has already occurred, by filing future proof of liability insurance pursuant to section 42-7-408 and paying the reinstatement fee.
C.R.S. § 42-7-304 Custody and disposition of security
42-7-304. Custody and disposition of security. (1) Security deposited in compliance with the requirements of section 42-7-301 shall be placed by the director in the custody of the state treasurer and shall be applied only to the payment of a judgment rendered against the person on whose behalf the deposit was made, for damages arising out of the accident in question in an action at law begun not later than one year after the date of such accident. Such deposit or any balance thereof shall be returned to the depositor or the depositor's personal representative, or the person designated by either of them, when evidence satisfactory to the director has been filed with the director that there has been a release from liability, or a final adjudication of nonliability, or a warrant for confession of judgment, or a duly acknowledged agreement, or whenever, after the expiration of one year from the date of the accident, or within one year after the date of deposit of any security, the director shall be given reasonable evidence that there is no such action pending and no judgment rendered in such action left unpaid.
(2) The director may reduce the amount of security ordered in any case within six months after the date of the accident if, in the director's judgment, the amount originally ordered is excessive. In case the security originally ordered has been deposited, the excess deposit over the reduced amount ordered shall be returned immediately to the depositor or the depositor's personal representative, regardless of any other provisions of this article.
(3) (a) It is the duty of any person having a claim against the security deposited under the provisions of section 42-7-301, on or before the expiration of one year from the date of the accident, to notify the director in writing under oath that there has been a release of liability, or a final adjudication of nonliability, or a warrant for confession of judgment, or a duly acknowledged agreement or that there is no action pending and no judgment rendered in any such action left unpaid or of any action taken on said claim which has not been finally determined.
(b) If any claimant fails to notify the director in writing under oath as provided in paragraph (a) of this subsection (3), the director shall notify the state treasurer to that effect and the state treasurer may, upon receipt of said notification, void the obligation provided for in section 42-7-301 and release and return the security to the depositor. The state treasurer shall then be fully and completely released from any further obligation or liability in relation thereto.
(c) Where said depositor cannot be located, the state treasurer shall notify the depositor by registered or certified mail, return receipt requested, addressed to the last-known address of said depositor, advising said depositor that the depositor must either appear and claim the security deposited within thirty days from the date of receipt of said letter, or said security will escheat to the general fund of the state of Colorado. If said depositor does not appear within the thirty-day period, the state treasurer shall void the obligation as provided in section 42-7-301, and the security shall escheat to the general fund of the state of Colorado, relieving the state treasurer of any further obligation or liability in relation thereto.
C.R.S. § 42-7-401 Proof required on judgments
42-7-401. Proof required on judgments. (1) The director shall also suspend the license issued to any person upon receiving an affidavit from the judgment creditor that such person has failed for a period of thirty days to satisfy any final judgment in amounts and upon a cause of action as stated in this article, or, in a criminal proceeding arising from the use or operation of a motor vehicle, has failed to comply with the terms of any order of restitution made as a condition of probation pursuant to section 18-1.3-205, C.R.S.
(2) The judgment referred to means a final judgment of any court of competent jurisdiction in any state or of the United States against a person as defendant upon a cause of action as stated in this article.
(3) The judgment referred to means any final judgment for damage to property in excess of one hundred dollars or for damages in any amount for or on account of bodily injury to or death of any person resulting from the operation of any motor vehicle upon a highway.
(4) This article shall not apply to any such judgment rendered against this state or any political subdivision thereof or any municipality therein.
C.R.S. § 42-7-402 Suspension, duration, bankruptcy
42-7-402. Suspension, duration, bankruptcy. (1) The suspension required in section 42-7-401 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.
(2) A discharge in bankruptcy following the rendering of any such judgment shall relieve the judgment debtor from any of the requirements of this article.
C.R.S. § 42-7-403 Sufficiency of payments
42-7-403. Sufficiency of payments. (1) Every judgment referred to in this article and for the purposes of this article shall be deemed satisfied:
(a) When twenty-five 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 twenty-five 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 42-7-408 (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).
(2) Credit for such amounts shall be deemed a satisfaction of any such judgment in excess of said amounts only for the purposes of this article.
(3) Whenever payment has been made in settlement of any claims for bodily injury, death, or property damage arising from a motor vehicle accident resulting in injury, death, or property damage to two or more persons in such accident, any such payment shall be credited in reduction of the amounts provided for in this section.
C.R.S. § 42-7-404 Payment of judgment in installments
42-7-404. 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 twenty-five dollars per month, while the payment of any said installment is not in default.
(2) A judgment debtor upon five days' notice to the judgment creditor may apply to the trial court in which the judgment was obtained for the privilege of paying such judgment in installments, and the court, in its discretion and without prejudice to any other legal remedies which the judgment creditor may have, may so order, fixing the amounts and times of, and the person to receive, payment of the installments.
(3) In the event the judgment debtor fails to pay any installment as permitted by the order of the court, upon notice of such default supported by an appropriate document from the court or by sworn affidavit of either the judgment creditor or the person designated to receive payments, the director shall immediately suspend the license of the judgment debtor until said judgment is satisfied as provided in this article.
C.R.S. § 42-7-405 Suspension upon second judgment
42-7-405. 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 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.
C.R.S. § 42-7-406 Proof required under certain conditions
42-7-406. Proof required under certain conditions. (1) Whenever the director revokes the license of any person pursuant to section 42-2-125 or 42-2-126, or cancels any license pursuant to section 42-2-122 because of the licensee's inability to operate a motor vehicle because of physical or mental incompetence, or cancels any probationary license pursuant to section 42-2-127, the director shall not issue to or continue in effect for any such person any new or renewal of license until permitted under the motor vehicle laws of this state, and not then until and unless such person files or has filed and maintains proof of financial responsibility as provided in this article 7; except that persons whose licenses are canceled pursuant to section 42-2-122 (2.5) or revoked for a first offense pursuant to section 42-2-125 (1)(g.5) or a first offense pursuant to section 42-2-126 (3)(b) or (3)(e) are not be required to file proof of financial responsibility in order to be relicensed.
(1.5) (a) Whenever the director revokes the license of a person under section 42-2-126 (3)(a), (3)(c), or (3)(d) for a second or subsequent offense and such person was driving the same vehicle in two or more of such offenses but did not own such vehicle, the director shall mail a notice to the owner of the vehicle pursuant to section 42-2-119 (2). In such notice, the director shall inform the owner that:
(I) The operator of the motor vehicle owned by the owner has been involved in multiple alcohol-related driving violations while operating the owner's vehicle;
(II) Because of the risks to the public connected with the use of the vehicle in alcohol-related driving violations, it is necessary for the motor vehicle owner to establish proof of financial responsibility;
(III) Within thirty days after the date of mailing of the notice, the owner is required to file proof of financial responsibility for the future pursuant to the requirements of section 42-7-408 or to request a hearing regarding the applicability of this requirement to the owner;
(IV) The vehicle owner is entitled to a hearing and judicial review pursuant to section 42-7-201;
(V) If the owner has not filed proof of financial responsibility or requested a hearing within thirty days after the date of mailing of the notice, the department will suspend the driver's license or nonresident operating privilege of the owner.
(b) If proof of financial responsibility for the future is required under this subsection (1.5), such proof shall be maintained for a period of three years as required by section 42-7-408 (1)(b).
(c) This subsection (1.5) does not apply to a motor vehicle that is:
(I) Rented from a person, firm, corporation, or other business entity whose primary business is the rental of motor vehicles; or
(II) Rented or loaned from a person, firm, corporation, or other business entity whose primary business is operation as a motor vehicle repair facility and who is providing such motor vehicle to the person while a motor vehicle is being repaired.
(2) (a) Whenever the director suspends the license of any person under section 42-2-127, the director shall not issue a probationary license to such person, nor shall the director at the termination of such person's period of suspension reinstate, reissue, renew, or issue a new license to such person unless such person furnishes the director evidence of insurance to show that the person is then insured, unless such person has deposited or deposits money or securities as provided in section 42-7-418.
(b) Evidence of insurance required pursuant to this subsection (2) does not require the use of the form known as the "SR-22" or any substantially similar form.
C.R.S. § 42-7-407 Duty of courts to report
42-7-407. Duty of courts to report. The clerk of a court or the judge of a court which has no clerk shall forward to the director a certified record of any judgment for damages, the rendering and nonpayment of which judgment requires the director to suspend the license and registrations in the name of the judgment debtor under this article. This record shall be forwarded to the director immediately upon the expiration of thirty days after such judgment becomes final and when such judgment has not been stayed or satisfied within the amounts specified in this article, as shown by the records of the court.
C.R.S. § 42-7-408 Proof of financial responsibility - methods of giving proof - duration - exception
42-7-408. Proof of financial responsibility - methods of giving proof - duration - exception. (1) (a) Proof of financial responsibility for the future, when required under this article, may be given by the following alternate methods:
(I) Proof that a policy of liability insurance has been obtained and is in full force and effect or that a bond has been duly executed or that deposit has been made of money; or
(II) Securities as provided in section 42-7-418.
(b) Proof of financial responsibility for the future in the amounts provided in section 42-7-103 (14) shall be maintained for three years from the date last required and shall be furnished for each motor vehicle registered during that period; except that, if during such three-year period the insured has not been licensed to drive pursuant to this title, the insured shall be credited with the nonlicensed time toward the three-year period.
(c) Notwithstanding the three-year requirement in paragraph (b) of this subsection (1):
(I) If an insured has been found guilty of DUI, DUI per se, or DWAI or if the insured's license has been revoked pursuant to section 42-2-126, other than a revocation under section 42-2-126 (3)(b) or (3)(e), only one time and no accident was involved in such offense, proof of financial responsibility for the future shall be required to be maintained only for as long as the insured's driving privilege is ordered to be under restraint, up to a maximum of three years. The time period for maintaining the future proof of liability insurance shall begin at the time the driver reinstates his or her driving privilege.
(II) If an insured has been found guilty of a second or subsequent offense of UDD with a BAC of at least 0.02 but not more than 0.05 or if the insured's driver's license has been revoked because of a second or subsequent offense pursuant to section 42-2-126 (3)(b) or (3)(e), proof of financial responsibility for the future shall be required to be maintained only for as long as the insured's driving privilege is ordered to be under restraint. The time period for maintaining the future proof of liability insurance shall begin at the time the driver reinstates his or her driving privilege.
(2) The term of the policy of liability insurance or the bond submitted as proof of financial responsibility for the future shall be for a minimum of three months.
(3) If an insured's driver's license is canceled pursuant to section 42-2-125 (4), and after such cancellation neither a court of competent jurisdiction nor an administrative hearing officer determines that the charges have been proved, the insured shall not be required to comply with the proof of financial responsibility requirements stated in this section.
(4) If at any time when insurance is required to be maintained in accordance with section 42-4-1409 or this article it is not so maintained or becomes invalid, the director shall suspend the driver's license of the person who has not maintained the required insurance and shall not reinstate the license of such person until future proof of financial responsibility is provided in accordance with section 42-7-406 (1).
(5) Repealed.
(6) (a) Upon receipt of evidence from an agency of another state or foreign jurisdiction that a former Colorado resident has obtained a license in such state or foreign jurisdiction, the director shall suspend the requirement for proof of financial responsibility for the future until such time as the former resident has made application for a new Colorado license.
(b) If such former resident makes application for a Colorado driver's license, the director shall reinstate the requirement for proof of financial responsibility for the future until such time as the original requirement to maintain proof of financial responsibility for the future has expired.
C.R.S. § 42-7-409 Proof for member of family or chauffeur
42-7-409. Proof for member of family or chauffeur. Whenever the director determines that any person required to give proof by reason of a conviction is not the owner of a motor vehicle but was at the time of such conviction a chauffeur or motor vehicle operator, however designated, in the employ of an owner of a motor vehicle or a member of the immediate family or household of the owner of a motor vehicle, the director shall accept proof of financial responsibility given by such owner in lieu of proof given by such other person so long as such latter person is operating a motor vehicle for which the owner has given proof as provided in this article. No such license shall be reinstated and no new license issued until otherwise permitted under the laws of this state.
C.R.S. § 42-7-410 Certificate for insurance policy
42-7-410. Certificate for insurance policy. (1) Proof of financial responsibility may be made by filing with the director the written certificate of any insurance carrier duly authorized to do business in this state, certifying that it has issued to or for the benefit of the person furnishing such proof and named as the insured a motor vehicle liability policy or in certain events an operator's policy, meeting the requirements of this article, and that said policy is then in full force and effect. Such certificate shall give the dates of issuance and expiration of such policy and shall explicitly describe all motor vehicles covered thereby, unless the policy is issued to a person who is not the owner of a motor vehicle.
(2) The director shall not accept any certificate unless the same covers all motor vehicles registered in the name of the person furnishing such proof as owner and an additional certificate shall be required as a condition precedent to the subsequent registration of any motor vehicle or motor vehicles in the name of the person giving such proof as owner.
C.R.S. § 42-7-411 Restrictions in certain type of policy
42-7-411. Restrictions in certain type of policy. (1) When a certificate is filed showing that a policy has been issued covering all motor vehicles owned by the insured but not insuring such person when operating any motor vehicle not owned by that person, it is unlawful for such person to operate any motor vehicle not owned by that person or not covered by such certificate.
(2) In the event the owner of the motor vehicle desires to be relieved of the restriction stated in subsection (1) of this section and to be permitted to drive any other motor vehicle, the owner may have such restrictions removed upon filing a certificate showing that there has been issued to the owner a policy of insurance insuring the owner as insured against liability imposed by law upon such an insured for bodily injury to or death of any person or damage to property to the amounts and limits as provided under section 42-7-103 (14) with respect to any motor vehicle operated by the insured and which otherwise complies with the requirements of this article with respect to such type of policy. Such policy is referred to in this article as an operator's policy.
(3) When the person required to give proof of financial responsibility is not the owner of a motor vehicle, then an operator's policy of the type and coverage described in subsection (2) of this section shall be sufficient under this article.
C.R.S. § 42-7-412 Certificate furnished by nonresident
42-7-412. Certificate furnished by nonresident. (1) The nonresident owner of a foreign vehicle may give proof of financial responsibility by filing with the director a written certificate of an insurance carrier authorized to transact business in the state in which the motor vehicle described in such certificate is registered or if such nonresident does not own a motor vehicle then in the state in which the insured resides and otherwise conforming to the provisions of this article, and the director shall accept the same upon condition that said insurance carrier complies with the following provisions of this section:
(a) Said insurance carrier shall execute a power of attorney authorizing the director to accept service on its behalf of notice or process in any action arising out of a motor vehicle accident in this state.
(b) Said insurance carrier shall duly adopt a resolution which shall be binding upon it, declaring that its policies shall be deemed to be varied to comply with the law of this state relating to the terms of motor vehicle liability policies issued in this article.
(c) Said insurance carrier shall also agree to accept as final and binding any final judgment of any court of competent jurisdiction in this state duly rendered in any action arising out of a motor vehicle accident.
(2) If any foreign insurance carrier which has qualified to furnish proof of financial responsibility defaults in any of said undertakings or agreements, the director shall not subsequently accept any certificate of said carrier, whether previously filed or subsequently tendered, as proof of financial responsibility so long as such default continues.
C.R.S. § 42-7-413 Motor vehicle liability policy
42-7-413. Motor vehicle liability policy. (1) "Motor vehicle liability policy", as used in this article, means a policy of liability insurance issued by an insurance carrier authorized to transact business in this state to or for the benefit of the person named therein as insured, which policy shall meet the following requirements:
(a) The policy of liability insurance shall designate by explicit description or by appropriate reference all motor vehicles with respect to which coverage is thereby intended to be granted.
(b) The policy of liability insurance shall insure the person named therein and any other person using or responsible for the use of said motor vehicle with the express or implied permission of said insured.
(c) The policy of liability insurance shall insure every such person on account of the maintenance, use, or operation of the motor vehicle within the continental limits of the United States or Canada against loss from the liability imposed by law; for damages, including damages for care and loss of services arising from such maintenance, use, or operation to the extent and aggregate amount, exclusive of interest and costs, with respect to each such motor vehicle, in the amounts specified in section 42-7-103 (2).
(2) When an operator's policy of liability insurance is required, it shall insure the person named therein as insured against the liability imposed by law upon the insured for bodily injury to or death of any person or damage to property to the amounts and limits set forth in paragraph (c) of subsection (1) of this section and growing out of the use or operation by the insured within the continental limits of the United States or Canada of any motor vehicle not owned by the insured.
(3) Any liability policy issued under this section need not cover any liability of the insured assumed by or imposed upon said insured under any workers' compensation law nor any liability for damage to property in charge of the insured or the insured's employees.
(4) Any such policy of liability insurance may grant any lawful coverage in excess of or in addition to the coverage specified in this section or contain any agreements, provisions, or stipulations not in conflict with the provisions of this article and not otherwise contrary to law.
(5) Any motor vehicle liability policy which by endorsement contains the provisions required under this section shall be sufficient proof of ability to respond in damages.
(6) The department may accept several policies of one or more such carriers which together meet the requirements of this section.
(7) Any binder pending the issuance of any policy of liability insurance, which binder contains or by reference includes the provisions under this section, shall be sufficient proof of ability to respond in damages.
C.R.S. § 42-7-414 Requirements to be complied with
42-7-414. Requirements to be complied with. (1) Except as provided in section 42-7-417, no motor vehicle liability policy or operator's policy of liability insurance shall be issued in this state unless and until all of the requirements of subsection (2) of this section are met.
(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:
(a) The liability of the insurance carrier under any such policy shall become absolute whenever loss or damage covered by such policy occurs, and the satisfaction by the insured of a final judgment for such loss or damage shall not be a condition precedent to the right or obligation of the carrier to make payment on account of such loss or damage. No fraud, misrepresentation, or other act of the insured in obtaining or retaining any such policy, or in adjusting a claim under any such policy, and no failure of the insured to give any notice, forward any paper, or otherwise cooperate with the insurance carrier shall constitute a defense as against the judgment creditor on any such judgment. The insurance carrier shall not be liable on any such judgment if it has not had reasonable notice of an opportunity to appear in and defend the action in which such judgment was rendered or if the judgment was obtained through collusion between the judgment creditor and the insured.
(b) The insurance carrier shall have the right to settle any claim covered by the policy, and if such settlement is made in good faith, the amount thereof shall be deductible from the limits of liability specified in the policy.
(c) No such policy shall be canceled except as provided in this section and section 42-7-416. The notice of cancellation shall be delivered to the named insured in person or mailed by certified mail, post-office receipt secured, or by registered mail prior to such cancellation. Unless the contract or policy of insurance provides for a shorter period of notice, said notice shall be so delivered or mailed to the address shown in the policy not less than thirty days prior to the date of cancellation. Proof of such mailing shall be sufficient proof of cancellation. Failure by any insurer to comply with the provisions for cancellation in this section and section 42-7-416 shall render invalid any such cancellation.
(d) No such policy shall be canceled or annulled as respects any loss or damage by any agreement between the carrier and the insured after the said insured has become responsible for such loss or damage, and any such cancellation or annulment shall be void.
(e) The policy may provide that the insured, or any other person covered by the policy, shall reimburse the insurance carrier for payment made on account of any loss or damage claim or suit involving a breach of the terms, provisions, or conditions of the policy. If the policy provides for limits in excess of the limits specified in section 42-7-103 (14), the insurance carrier may plead against any plaintiff, with respect to the amount of such excess limits of liability, any defenses which it may be entitled to plead against the insured, and any such policy may further provide for the prorating of the insurance thereunder with other applicable valid and collectible insurance.
(f) The policy, the written application therefor, if any, and any rider or endorsement which does not conflict with the provisions of this article shall constitute the entire contract between the parties.
hich it may be entitled to plead against the insured, and any such policy may further provide for the prorating of the insurance thereunder with other applicable valid and collectible insurance.
(f) The policy, the written application therefor, if any, and any rider or endorsement which does not conflict with the provisions of this article shall constitute the entire contract between the parties.
(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 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.
(3) (a) The insurance carrier that issues a motor vehicle liability policy accepted as proof under this article shall include the following provision in the policy contract: "If the insured's whereabouts for service of process cannot be determined through reasonable effort, the insured agrees to designate and irrevocably appoint the insurance carrier as the agent of the insured for service of process, pleadings, or other filings in a civil action brought against the insured or to which the insured has been joined as a defendant or respondent in any Colorado court if the cause of action concerns an incident for which the insured can possibly claim coverage. Subsequent termination of the insurance policy does not affect the appointment for an incident that occurred when the policy was in effect. The insured agrees that any such civil action may be commenced against the insured by the service of process upon the insurance carrier as if personal service had been made directly on the insured. The insurance carrier agrees to forward all communications related to service of process to the last-known e-mail and mailing address of the policyholder in order to coordinate any payment of claims or defense of claims that are required."
(b) If service of process is made on the insurance carrier under this subsection (3), the plaintiff shall cause the service of process to be made on the insurance carrier's registered agent.
(c) If service is obtained under this section, the venue for the underlying claim is the same as if the defendant is a nonresident.
(d) Except as expressly provided in this subsection (3), this subsection (3) does not alter or expand the terms and conditions of the insurance policy or liability coverage.
(e) In the contract provision required by this subsection (3), the name of the insurance carrier issuing the policy shall be substituted for the phrase "The insurance carrier."
(f) If service of process is made on the insurance carrier under this subsection (3) and the court enters judgment or the insurance carrier agrees to a settlement for the damages caused by the absent insured, the amount of the insurance carrier's liability shall not exceed the policy limits of the coverage. A judgment or settlement obtained using service of process on the carrier shall not bar the injured person from subsequently making personal service on the person who caused the injury and seeking additional remedies provided by law.
(g) Payment under the policy pursuant to this section shall not be deemed to be an admission of liability by the alleged tortfeasor and shall not prejudice the right of the alleged tortfeasor to contest his or her liability or the extent of damages owed to the injured party.
m subsequently making personal service on the person who caused the injury and seeking additional remedies provided by law.
(g) Payment under the policy pursuant to this section shall not be deemed to be an admission of liability by the alleged tortfeasor and shall not prejudice the right of the alleged tortfeasor to contest his or her liability or the extent of damages owed to the injured party.
(h) As used in this subsection (3), "reasonable effort" means service at the defendant's last-known address, an address obtained from the insurance policy, an address obtained from a driver's license or motor vehicle registration, or any readily ascertainable successor address.
C.R.S. § 42-7-415 When insurance carrier to issue certificate
42-7-415. When insurance carrier to issue certificate. An insurance carrier which has issued a motor vehicle liability policy or an operator's policy of liability insurance meeting the requirements of this article shall upon request of the insured therein deliver to the insured for filing or at the request of the insured shall file directly with the director an appropriate certificate showing that such policy has been issued, which certificate shall meet the requirements of this article. The issuance and delivery or filing of such a certificate shall be conclusive evidence that every policy therein recited has been duly issued and complies with the requirements of this article.
C.R.S. § 42-7-416 Notice required upon cancellation
42-7-416. Notice required upon cancellation. When an insurance carrier has certified a motor vehicle liability policy under this article, it shall give written notice to the director during the ten-day period immediately following the effective date of the cancellation of such policy stating that the policy has been canceled.
C.R.S. § 42-7-417 Article not to affect other policies
42-7-417. 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 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.
(2) This article shall not be held to apply to or affect policies insuring solely the insured named in the policy against liability resulting from the maintenance, operation, or use of motor vehicles not owned by the insured by persons in the insured's employ or on the insured's behalf.
C.R.S. § 42-7-418 Money - securities for financial responsibility
42-7-418. Money - securities for financial responsibility. (1) A person may give proof of financial responsibility by delivering to the director money in an amount or securities approved by said director and of a market value in a total amount as would be required for coverage in a motor vehicle liability policy furnished by the person giving such proof under this article. Such securities shall be of a type which may legally be purchased by savings banks or for trust funds.
(2) All money or securities so deposited shall be subject to execution to satisfy any judgment mentioned in this article but shall not otherwise be subject to attachment or execution.
C.R.S. § 42-7-419 Substitution of proof
42-7-419. Substitution of proof. The director shall cancel any bond or return any certificate of insurance or the director shall direct and the state treasurer shall return any money or securities to the person entitled thereto, upon the substitution and acceptance of other adequate proof of financial responsibility pursuant to this article.
C.R.S. § 42-7-420 Failure of proof - other proof
42-7-420. Failure of proof - other proof. Whenever any evidence of proof of ability to respond in damages filed by any person under the provisions of this article no longer fulfills the purpose for which required, the director, for the purpose of this article, shall require other evidence of ability to respond in damages as required by this article and shall suspend the license of such person pending such proof.
C.R.S. § 42-7-421 When director may release proof of financial responsibility
42-7-421. When director may release proof of financial responsibility. (1) The director, upon request, shall cancel any bond or return any certificate of insurance, or the director shall direct and the state treasurer shall return to the person entitled thereto any money or securities deposited pursuant to this article as proof of financial responsibility, or waive the requirement of filing proof of financial responsibility in any of the following events:
(a) At any time after three years from the date such proof was required, or after any other period during which proof was required pursuant to section 42-7-408 (1) in the case of certain violations for an alcohol-related driving offense, if, during such three-year or other period preceding the request, the person furnishing such proof has not been convicted of any offense referred to in section 42-7-406; or
(b) In the event of the death of the person on whose behalf such proof was filed, or the permanent incapacity of such person to operate a motor vehicle; or
(c) In the event the person who has given proof of financial responsibility surrenders the person's license to the director, but the director shall not release such proof in the event any action for damages upon a liability referred to in this article is then pending or any judgment upon any such liability is then outstanding and unsatisfied or in the event the director has received notice that such person has within the period of three months immediately preceding been involved as a driver in any motor vehicle accident. An affidavit of the applicant of the nonexistence of such facts shall be sufficient evidence thereof in the absence of evidence to the contrary in the records of the department.
(2) Whenever any person to whom proof has been surrendered, as provided in paragraph (c) of subsection (1) of this section, applies for a license within a period of three years from the date proof of financial responsibility was originally required, or within any other period during which proof of financial responsibility was required pursuant to section 42-7-408 (1), any such application shall be refused unless the applicant establishes such proof for the remainder of such period.
C.R.S. § 42-7-422 No proof when proof required
42-7-422. No proof when proof required. Any person whose license or other privilege to operate a motor vehicle has been suspended, canceled, or revoked, and restoration thereof or issuance of a new license is contingent upon the furnishing of proof of financial responsibility for the future, and who, during such suspension or revocation or in the absence of proper authorization from the director, drives any motor vehicle upon any highway in Colorado except as permitted under this article 7 commits a class A traffic infraction.
C.R.S. § 42-7-501 Self-insurers
42-7-501. Self-insurers. (1) Any person in whose name more than twenty-five motor vehicles are registered may qualify as a self-insurer by obtaining a certificate of self-insurance issued by the commissioner of insurance.
(2) The commissioner of insurance may, in his or her discretion, upon the application of such person, issue a certificate of self-insurance when the commissioner of insurance is satisfied that such person is possessed and will continue to be possessed of ability to pay all judgments that may be obtained against such person. Upon not less than five days' notice and a hearing pursuant to such notice, the commissioner of insurance may, upon reasonable grounds, cancel a certificate of self-insurance. Failure to pay any judgment within thirty days after such judgment has become final shall constitute a reasonable ground for the cancellation of a certificate of self-insurance.
C.R.S. § 42-7-502 Action against nonresident - reciprocity with other states
42-7-502. 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 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 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.
(2) The director shall transmit a certified copy of any record of any such conviction of a nonresident to the motor vehicle commissioner or state officer performing the functions of a commissioner in the state in which such nonresident resides and shall likewise forward to such officer a certified record of any unsatisfied judgment rendered against such nonresident which requires suspension of such nonresident's driving privileges in this state.
(3) When a nonresident's operating privilege is suspended pursuant to section 42-7-301, the director shall transmit a certified copy of the record of such action to the official in charge of the issuance of licenses in the state in which such nonresident resides, if the law of such other state provides for action in relation thereto similar to that provided for in subsection (4) of this section.
(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.
C.R.S. § 42-7-503 Director to furnish operating record
42-7-503. Director to furnish operating record. The director shall, upon request, furnish any insurance carrier or any person or surety the record of any person subject to the provisions of this article, which record shall fully designate the motor vehicles, if any, registered in the name of such person, and if there is no record of any conviction of such person of a violation of any provision of any statute relating to the operation of a motor vehicle or of any injury or damage caused by such person as provided in this article, the director shall so certify. Such records shall be public records and subject to the provisions of section 42-1-206. No information required to be confidential by the provisions of section 24-72-204 (3.5)(a), C.R.S., shall be released by the director except as provided by that section. The director shall collect for each such certificate the sum of seventy-five cents.
C.R.S. § 42-7-504 Matters not to be evidence in litigation
42-7-504. Matters not to be evidence in litigation. (1) Except as provided in subsection (2) of this section, neither action taken by the director pursuant to this article, any judgment or court decision on appeal therefrom, the findings of the director in such action, nor the security deposited, statement evidencing automobile liability insurance or bond, or proof of financial responsibility filed as provided in this article shall be referred to nor be evidence of the negligence or due care of either party of an action at law to recover damages or in a criminal proceeding arising out of a motor vehicle accident. This section shall not apply to an 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, the director shall issue, upon request, a certificate under seal. The certificate shall contain the motor vehicle operator's name, address, date of birth, and driver's license number; 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. The director shall collect for each such certificate an amount sufficient to defray the costs of administration of this section. Such amount shall be included as a cost of the action.
C.R.S. § 42-7-505 Forging ability to respond in damages
42-7-505. 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 7, commits a class 2 misdemeanor.
C.R.S. § 42-7-505.5 Motor carrier indemnity agreements void - choice of law for transportation contracts
42-7-505.5. Motor carrier indemnity agreements void - choice of law for transportation contracts. (1) Notwithstanding any other provision of law, if any provision of a transportation contract purports to indemnify, defend, or hold harmless or has the effect of indemnifying, defending, or holding harmless the indemnitee from or against any liability for loss or damage resulting from its own negligence or intentional acts or omissions, then, to that extent, the provision is hereby declared contrary to public policy and is therefore void.
(2) Notwithstanding any contractual provision to the contrary, the laws of the state of Colorado apply to every transportation contract executed or renewed, or under which services are performed, within the state of Colorado.
C.R.S. § 42-7-506 Surrender of license
42-7-506. Surrender of license. (1) Any person whose license has been suspended as provided in this article 7 and has not been reinstated shall immediately return such license held by such person to the director. Any person willfully failing to comply with this requirement commits a class A traffic infraction.
(2) The director is authorized to take possession of any license upon the suspension thereof under the provisions of this article or to direct any peace officer to take possession thereof and to return the same to the office of the director.
C.R.S. § 42-7-507 Penalty
42-7-507. Penalty. Any person who violates any provision of this article 7 for which another penalty is not prescribed by law commits a class A traffic infraction.
C.R.S. § 42-7-508 No repeal of motor vehicle laws
42-7-508. No repeal of motor vehicle laws. This article shall in no respect be considered as a repeal of the provisions of the state motor vehicle laws, but shall be construed as supplemental thereto.
C.R.S. § 42-7-509 Article does not prevent other process
42-7-509. Article does not prevent other process. This article shall not be construed to prevent the plaintiff in any action at law from relying for security upon the other processes provided by law.
C.R.S. § 42-7-510 Insurance or bond required
42-7-510. Insurance or bond required. (1) An owner of a truck that is subject to the registration fee imposed pursuant to section 42-3-306 (5)(b) or (7) and that is not subject to article 10.1 of title 40, C.R.S., before operating or permitting the operation of the vehicle upon a public highway in this state, shall have in each vehicle a motor vehicle liability policy or a certificate evidencing the policy issued by an insurance carrier or insurer authorized to do business in Colorado, or a copy of a valid certificate of self-insurance issued pursuant to section 10-4-624, C.R.S., or a surety bond issued by a company authorized to do a surety business in Colorado in the sum of fifty thousand dollars for damages to property of others; the sum of one hundred thousand dollars for damages for or on account of bodily injury or death of one person as a result of any one accident; and, subject to such limit as to one person, the sum of three hundred thousand dollars for or on account of bodily injury to or death of all persons as a result of any one accident.
(2) (a) Every owner of a motor vehicle designed and used for the nonemergency transportation of individuals with disabilities as defined in paragraph (b) of this subsection (2), before operating or permitting the operation of such vehicle upon any public highway in this state, shall file with the department a certificate evidencing a motor vehicle liability insurance policy issued by an insurance carrier or insurer authorized to do business in the state of Colorado or a surety bond issued by a company authorized to do a surety business in the state of Colorado with a minimum sum of fifty thousand dollars for damages to property of others; a minimum sum of one hundred thousand dollars for damages for or on account of bodily injury or death of one person as a result of any one accident; and, subject to such limit as to one person, a minimum sum of three hundred thousand dollars for or on account of bodily injury to or death of all persons as a result of any one accident.
(b) As used in this subsection (2), a "motor vehicle designed and used for the nonemergency transportation of individuals with disabilities" means any motor vehicle designed to facilitate the loading of individuals with physical disabilities confined to a wheelchair except vehicles owned by the United States government, vehicles owned and operated by any special transportation district, or privately owned vehicles when such privately owned vehicles are used by the owner to transport the owner or members of the owner's family who are confined to a wheelchair.
(3) Any person who violates any provision of this section commits a class A traffic infraction. If any violation of this section is committed on behalf of a partnership or corporation, any director, officer, partner, or high managerial agent thereof who authorized, ordered, permitted, or otherwise participated in, by commission or omission, such violation is also a class A traffic infraction.
C.R.S. § 42-7-601 Short title
42-7-601. Short title. (1) This part 6 shall be known and may be cited as the "Motorist Insurance Identification Database Program Act".
(2) Repealed.
C.R.S. § 42-7-602 Uninsured motorist identification database program - creation
42-7-602. Uninsured motorist identification database program - creation. The general assembly hereby directs the transportation legislation review committee to conduct an examination of the problem of uninsured motorists in this state and to propose legislation which shall alleviate if not eliminate the problem. The general assembly further directs the transportation legislation review committee to examine Colorado's compulsory motor vehicle insurance system. Such examination shall include a review of whether such system should be maintained or repealed and whether there are more effective enforcement mechanisms that might be employed. The committee shall also study the effectiveness of other enforcement mechanisms including, but not limited to, uninsured motorist database programs that have been employed in other compulsory insurance states.
C.R.S. § 42-7-603 Definitions
42-7-603. Definitions. As used in this part 6, unless the context otherwise requires:
(1) "Database" means the motorist insurance identification database described in section 42-7-604 (5).
(2) "Department" means the department of revenue.
(3) "Designated agent" means the party with which the department contracts under section 42-7-604.
(4) (Deleted by amendment, L. 2000, p. 1649, § 43, effective June 1, 2000.)
(5) "Program" means the motorist insurance identification database program created in section 42-7-604.
C.R.S. § 42-7-604 Motorist insurance identification database program - creation - administration - selection of designated agent - legislative declaration
42-7-604. Motorist insurance identification database program - creation - administration - selection of designated agent - legislative declaration. (1) The general assembly hereby finds, determines, and declares that the purpose of this section is to help reduce the uninsured motorist population in this state and measure the effectiveness of the motorist insurance identification database created herein.
(2) The general assembly further recognizes that the information and data required to be disclosed by insurers in creating and maintaining the motorist insurance identification database is proprietary in nature. Accordingly, the parties handling such information and data shall at all times maintain their confidential and proprietary nature.
(3) The motorist insurance identification database program is hereby created for the purpose of establishing a database to use when verifying compliance with the motor vehicle security requirements in this article and in articles 3 and 4 of this title. The program shall be administered by the department.
(4) (a) The department shall monitor compliance with the financial security requirements of this article and may contract with a designated agent to monitor such compliance with the financial security requirements of this article. If the department contracts with a designated agent, the agent shall be authorized to perform all functions of the department delegated to the agent in the contract.
(b) After a contract has been entered into with a designated agent, the department shall convene a working group for the purpose of facilitating the implementation of the program. The working group shall consist of representatives of the insurance industry, the division of insurance, the department of public safety, and the department.
(5) (a) The department or its designated agent, using its own computer network, shall develop and maintain a computer database with information provided by:
(I) Insurers, pursuant to section 10-4-615, C.R.S.; except that any person who qualifies as self-insured pursuant to section 10-4-624, C.R.S., shall not be required to provide information to the department; and
(II) The department shall compare the make, year, and vehicle identification number of all registered vehicles to policy information provided by insurers.
(b) The department shall establish guidelines for the development and maintenance of a database so that the database can easily be accessed by state and local law enforcement agencies.
(c) The department shall:
(I) Provide an internet option that allows insurers and their agents, including commercial insurers, to submit insurance information directly to the designated agent. Each insurer shall cooperate with the verification process.
(II) Provide a reasonable and adequate quality control process to ensure the accurate input of data, including the vehicle identification numbers and insurance information;
(III) (Deleted by amendment, L. 2006, p. 1011, § 7, effective July 1, 2006.)
(IV) Provide each county clerk access to the most currently available data from the database of insurance information.
(6) The department shall, at least weekly:
(a) Update the database with information provided by insurers in accordance with section 10-4-615, C.R.S.;
(b) Compare then-current motor vehicle registrations against the database.
(6.5) and (7) Repealed.
(8) The department, in cooperation with the division of insurance, shall promulgate rules and develop procedures for administering and enforcing this part 6. Such rules shall specify the reporting requirements that are necessary and appropriate for commercial lines of insurance and shall be developed with input by insurers and the designated agent.
C.R.S. § 42-7-605 Notice of lack of financial responsibility
42-7-605. Notice of lack of financial responsibility. (Repealed)
C.R.S. § 42-7-606 Disclosure of insurance information - penalty
42-7-606. Disclosure of insurance information - penalty. (1) Information provided by insurers and the department for inclusion in the database established pursuant to section 42-7-604 is the property of the insurer or the department, as the case may be, and may not be disclosed except as follows:
(a) The department shall verify a motor vehicle's insurance coverage upon request by any state or local government agency investigating, litigating, or enforcing such motor vehicle's compliance with the financial security requirements.
(b) The department shall disclose whether a motor vehicle has the required insurance coverage upon request by the following individuals and agencies only:
(I) The owner;
(II) The parent or legal guardian of the owner if the owner is an unemancipated minor;
(III) The legal guardian of the owner if the owner is legally incapacitated;
(IV) Any person who has power of attorney from the owner;
(V) Any person who submits a notarized release from the owner that is dated no more than ninety days before the date the request is made;
(VI) Any person suffering loss or injury in a motor vehicle accident, but only as part of an accident report authorized in part 16 of article 4 of this title; or
(VII) The office of the state auditor, for the purpose of conducting any audit authorized by law.
(2) Any person or agency who knowingly discloses information from the database for a purpose or to a person other than those authorized in this section commits a class A traffic infraction.
(3) The state shall not be liable to any person for gathering, managing, or using information in the database pursuant to this part 6.
(4) The designated agent shall not be liable to any person for performing its duties under this part 6, unless and to the extent said agent commits a willful and wanton act or omission. The designated agent shall be liable to any insurer damaged by the designated agent's negligent failure to protect the confidential and proprietary nature of the information and data disclosed by the insurer to the designated agent.
(5) The designated agent shall provide to this state an errors and omissions insurance policy covering said designated agent in an appropriate amount.
(6) No insurer shall be liable to any person for performing its duties under this part 6, unless and to the extent the insurer commits a willful and wanton act or omission.
C.R.S. § 42-7-607 Part 6 not to supersede other provisions
42-7-607. Part 6 not to supersede other provisions. This part 6 shall not supersede other actions or penalties that may be taken or imposed for violation of the financial security requirements of this article.
C.R.S. § 42-7-608 Review by department of regulatory agencies - repeal
42-7-608. Review by department of regulatory agencies - repeal. (Repealed)
C.R.S. § 42-7-609 Report
42-7-609. Report. The department of revenue shall submit a report, in consultation with the division of insurance, regarding the effectiveness of the motorist insurance database, including without limitation the department's recommendations on whether the program should be continued and on whether enforcement mechanisms should be instituted or changed. The report shall be submitted to the house business affairs and labor committee of the general assembly by January 1, 2008.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-42.docxFetched: 10/6/2026