2020 Colorado Revised Statutes
Title 6 - Consumer And Commercial Affairs
Article 1. Colorado Consumer Protection Act
Section 6-1-1203. Insurance coverage during car sharing period.

(1) (a) Except as provided in subsection (1)(b) of this section, a car sharing program shall assume the liability of a shared car owner for any bodily injury or property damage to third parties, or uninsured and underinsured motorist or personal injury protection losses, during the sharing period up to an amount stated in the car sharing agreement, but not less than the minimum amount of financial responsibility required by article 7 of title 42.

(b) The assumption of liability under subsection (1)(a) of this section does not apply to a shared car owner if:

1. The shared car owner makes an intentional or fraudulent material misrepresentationto or omission to the car sharing program before the sharing period when the loss occurred; or

2. The shared car owner acts in concert with a shared car driver who fails to return theshared car in accordance with the car sharing agreement.

(c) Notwithstanding subsection (1)(b) of this section, the definition of "sharing termination time" in section 6-1-1202 (11), or the amount of liability coverage stated in the car sharing agreement, the assumption of liability under subsection (1)(a) of this section in the amount required by article 7 of title 42 applies to any bodily injury or property damage suffered by innocent third parties for injuries or losses during the sharing period.

(2) A car sharing program shall ensure that, during each sharing period, the shared car owner and the shared car driver are insured under an automobile liability insurance policy that:

(a) (I) Recognizes that the shared car insured under the policy is made available through and used through a car sharing program; or

(II) Does not exclude use of a shared car by a shared car driver; and (b) Provides insurance coverage under a:

1. Commercial liability policy issued to the car sharing program that is not less thanthree times the minimum amount of financial responsibility required by article 7 of title 42; or

2. Personal liability policy issued to the shared car driver that is not less than the minimum amount of financial responsibility required by article 7 of title 42.

(3) The financial responsibility required in subsection (2) of this section may be satisfied by automobile liability insurance that is maintained by any one or a combination of the following:

(a) A shared car driver; or (b) A car sharing program.

4. The insurance described in subsection (3) of this section that satisfies the insurancerequirement in subsection (2) of this section is the primary coverage during the sharing period.

5. A car sharing program shall assume primary liability for a claim if:

(a) The program is in whole or in part providing the insurance required in subsections

2. and (3) of this section;

   2. A dispute exists as to who was in control of the shared car at the time of the loss; and

   3. The program does not have available, did not retain, or fails to provide the information required in section 6-1-1207 that relates to the claim.

(6) (a) If the insurance that complies with subsection (2) of this section is provided by the shared car driver or shared car owner, a car sharing program shall maintain insurance that provides coverage meeting the requirements of this section and that covers a lapse in or lack of coverage of the shared car driver's or shared car owner's insurance, beginning with the first dollar of a claim and including a duty to defend the claim.

(b) The insurance required by this subsection (6) may be procured from:

1. An insurer licensed under title 10; or

2. A surplus lines insurer authorized under article 5 of title 10 that has a credit rating ofno less than:

1. "A-" from A.M. Best Company, Inc.;

2. "A" from Demotech, Inc.; or

3. A similar rating from another rating agency if both the rating and agency are recognized by the commissioner of insurance by rule under section 10-5-117.

7. Coverage under an automobile liability insurance policy maintained by the car sharing program does not depend on a personal automobile liability insurer first denying or being required to deny a claim.

8. This section does not:

1. Limit the liability of the car sharing program for an act or omission of the car sharingprogram that results in bodily injury to any person as a result of the use of a shared car through a car sharing program; or

2. Limit the ability of the car sharing program to contract for indemnification from theshared car owner or the shared car driver for economic loss sustained by the car sharing program caused by a breach of the terms and conditions of the car sharing agreement.

Source: L. 2019: Entire part added, (SB 19-090), ch. 391, p. 3494, § 1, effective January 1, 2020. L. 2020: (8)(a) amended, (HB 20-1402), ch. 216, p. 1041, § 4, effective June 30.

1204. Notification of implications of lien. When a car owner registers as a shared car owner on a car sharing program and before the shared car is made available for car sharing, the car sharing program shall notify the shared car owner that, if the shared car has a lien against it, the use of the shared car through a car sharing program, including use without physical damage coverage, may violate the terms of the contract with the lienholder.

Source: L. 2019: Entire part added, (SB 19-090), ch. 391, p. 3496, § 1, effective January 1, 2020.

1205. Liability - exclusions for personal automobile liability insurance policy indemnification. (1) An authorized insurer may exclude coverage and the duty to defend or indemnify for any claim under a shared car owner's personal automobile liability insurance policy. This part 12 does not invalidate or limit an exclusion contained in an automobile liability insurance policy, including any insurance policy that excludes coverage for motor vehicles made available for rent, sharing, hire, or business use.

(2) An automobile insurer of the shared car owner that defends or indemnifies a shared car claim has the right to contribution against the insurer of the car sharing program if the claim is:

1. Made against the shared car owner or the shared car driver for damages occurringduring the sharing period; and

2. Excluded under the terms of the shared car owner's insurance policy.

Source: L. 2019: Entire part added, (SB 19-090), ch. 391, p. 3496, § 1, effective January 1, 2020. L. 2020: IP(2) amended, (HB 20-1402), ch. 216, p. 1041, § 5, effective June 30.

1206. Prohibition on exclusion of coverage for car sharing. An automobile insurance company shall not exclude otherwise applicable uninsured or underinsured motorist coverage from a shared car driver's or passenger's personal automobile insurance policy because of the person's participation in car sharing.

Source: L. 2019: Entire part added, (SB 19-090), ch. 391, p. 3496, § 1, effective January 1, 2020.

1207. Record keeping. A car sharing program shall collect and verify records concerning the use of a vehicle, including times used, fees paid by the shared car driver, and revenues received by the shared car owner. A car sharing program shall provide these records upon request to the shared car owner; to facilitate a claim investigation, to the shared car owner's insurer or the shared car driver's insurer; or as required by an airport concession agreement. The car sharing program shall retain these records for at least the duration of the applicable personal injury statute of limitations.

Source: L. 2019: Entire part added, (SB 19-090), ch. 391, p. 3496, § 1, effective January 1, 2020.

1208. Federal law - vicarious liability. A car sharing program and a shared car owner are exempt from vicarious liability in accordance with 49 U.S.C. sec. 30106 and under any state or local law that imposes liability based only on vehicle ownership.

Source: L. 2019: Entire part added, (SB 19-090), ch. 391, p. 3497, § 1, effective January 1, 2020.

1209. Insurable interest. (1) A car sharing program shall have an insurable interest in a shared car during the sharing period. This section does not create liability for a car sharing program for failure to maintain the insurance coverage required in section 6-1-1203 if insurance coverage is maintained in compliance with section 6-1-1203 by the shared car driver or the shared car owner.

(2) A car sharing program may own and maintain, as the named insured, one or more policies of automobile liability insurance that provide coverage in the amount of, in excess of, or optional to the amount of coverage required in this part 12. The coverage may include coverage for:

1. Liability assumed by the car sharing program under a car sharing agreement;

2. The liability of the shared car owner;(c) Damage or loss to the shared car; or (d) The liability of the shared car driver.

Source: L. 2019: Entire part added, (SB 19-090), ch. 391, p. 3497, § 1, effective January 1, 2020.