SB23-015: Vehicle Value Protection Agreements

• Establishes a new regulatory framework in Colorado for vehicle value protection agreements that provide benefits to buyers when covered vehicles lose value due to damage, total loss, theft, or trade-in

• Requires providers to offer these agreements without conditioning credit terms or vehicle purchase/lease terms on their purchase, and mandates agreements be backed by contractual liability insurance policies from licensed insurers

• Specifies that agreements must clearly disclose cancellation procedures, refund methodology, benefit claim procedures, contact information, and that credit terms cannot be conditioned on purchase

• Allows providers to cancel agreements for nonpayment (effective immediately) or material misrepresentation/substantial breach (with 5 days notice), and requires pro rata refunds of unearned fees minus up to $75 administrative fee

• Classifies compliant vehicle value protection agreements as non-insurance products exempt from state insurance regulation, and applies the law to agreements made on or after the effective date (subject to potential referendum)