Colorado Auto Theft Prevention Fund helps reduce auto theft in Colorado
In 2008 the Colorado legislature passed Senate Bill 08-060, which concerned the continuation of the Colorado Automobile Theft Prevention Authority (CATPA). This Act was effective July 1, 2008 and placed certain requirements on the Colorado automobile insurers.
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Prior to July 1, 2008 Colorado law allowed an insurer to voluntarily pay whatever amount it deemed appropriate in to the auto theft prevention cash fund. Effective July 1, 2008, the law was amended to require the insurer pay an assessment of $1 per vehicle insured. The insurers are required to report, by August 15 of each year, the number of vehicles insured as of July 1 of that same year. The insurer shall base its payment on this reported number of vehicles. One half of the assessment (or $.50 per reported vehicle) must be paid by January 1 of the following year and the other half of the assessment must be paid by July 1 of that same year. Then the cycle begins again.
The Division of Insurance may be asked to provide a list of the insurers writing automobile insurance in Colorado to the CATPA board. The CATPA board will then reconcile the insurers reporting to the insurers provided by the Division. Should an insurer fail to pay the $1 assessment the CATPA board may ask the Division to enforce this requirement, which it will.
The $1 per vehicle fee may be assessed on the consumer or owner of the vehicle insured; however, the insurer may not increase its filed rates to cover the fee. If the insurer is to assess this fee on its consumer it must provide disclosure by listing it on the declaration page and/or the billing statement and it must be clearly identifiable as an annual $1 per vehicle assessment.
In addition to the assessment, CATPA is funded by gifts, donations or grants from public and private sources. Applicants, such as law enforcement agencies, apply for grants through the Colorado Auto Theft Prevention Board. The money is used to improve and create automobile theft prevention programs and for the prosecution of automobile theft crimes and enhanced law enforcement to prevent theft.
Article by The Colorado Regulator published by the Colorado Division of Insurance
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