Colorado Motor Vehicle Financial Responsibility Law

What this document is

Colorado Motor Vehicle Financial Responsibility Law - C.R.S. Title 42, Article 7 (42-7-101 through 42-7-609) is a state statute published by Colorado General Assembly, Office of Legislative Legal Services (leg.colorado.gov). It is one of the Colorado documents that insurance license exam questions are written from, including colorado property & casualty, colorado personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• C.R.S. § 42-7-103(2) (Definitions: Automobile liability policy or bond)

  “"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...”

• C.R.S. § 42-7-103(9) (Definitions: Motor vehicle liability policy)

  “"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.”

• C.R.S. § 42-7-414(2)(a) (Requirements to be complied with: judgment creditor protections despite the insured's own conduct)

  “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...”

• C.R.S. § 42-7-606(1)(b) (Disclosure of insurance information - penalty: individuals and agencies entitled to disclosure)

  “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...”

• C.R.S. § 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. § 42-7-414(2)(a) (Motor vehicle liability policy: liability of the carrier absolute, no defense against the judgment creditor)

  “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...”

• C.R.S. 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.”

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