Opinion ID: 1391596
Heading Depth: 2
Heading Rank: 3

Heading: Unlawful Delegation to Insurance Companies

Text: The district court was in error in concluding that the regulation is an unlawful delegation to a third party, to wit: the automobile insurance industry, of an operative part of a state law which carries criminal sanctions for its violation. Regulation 42-6-134(I)(iv)(b) provides that a transfer of a damaged and unrepaired motor vehicle retained by the owner after a total loss settlement by an insurance carrier shall be treated as sold or otherwise disposed of as salvage. Appellees, relying on People v. Vinnola, 177 Colo. 405, 494 P.2d 826 (1972), argue that the regulation unconstitutionally grants the automobile insurance industry unfettered discretion to determine whether or not an owner is subject to criminal liability for failing to surrender the certificate of title after a total loss settlement. We find this argument untenable. Admittedly, the owner's transfer of a damaged and unrepaired vehicle to another, after a total loss insurance settlement, requires the owner to surrender his title certificate or face liability for a class 1 petty offense under section 42-6-134, C.R.S.1973 (1979 Supp.). However, the determinative fact of liability is not the insurance company's decision to make a total loss settlement with the owner. Rather, liability depends upon the owner's failure to surrender the title in connection with his transfer of the damaged and unrepaired vehicle to another  an act which is clearly a sale or other disposition as salvage under the statute. The owner has the same responsibility of title-surrender when he transfers to another a damaged and unrepaired vehicle not covered by insurance, and the vehicle has an estimated value in excess of $1,000, but the estimated cost of repair exceeds its wholesale cost. Regulation 42-6-134 (I)(iv)(c), 1 C.C.R. 204-2. This act of the owner also qualifies as a sale or other disposition as salvage under the statute. Contrary to the district court's determination, we do not perceive the regulation as an unlawful delegation to insurance companies of authority to determine or control the criminal responsibility of the owner. See Norsworthy v. Department of Revenue, 197 Colo. 527, 594 P.2d 1055 (1979). [5]