(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 dam
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(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.
(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 email 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.
(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.