ARTICLE 1 GENERAL PROVISIONS

Editor's note: This article was repealed in 2002 and was subsequently recreated and reenacted in 2003, resulting in the addition, relocation, and elimination of sections as well as subject matter. For amendments to this article prior to 2002, consult the Colorado statutory research explanatory note and the table itemizing the replacement volumes and supplements to the original volume of C.R.S. 1973 beginning on page vii in the front of this volume. Former C.R.S. section numbers are shown in editor's notes following those sections that were relocated.

Section

PART 1 GENERAL PROVISIONS

PART 2 EXAMINATIONS

PART 3 MARKET CONDUCT

10-1-101. Legislative declaration.

The general assembly finds and declares that the purpose of this title is to promote the public welfare by regulating insurance to the end that insurance rates shall not be excessive, inadequate, or unfairly discriminatory, to give consumers thereof the greatest choice of policies at the most reasonable cost possible, to permit and encourage open competition between insurers on a sound financial basis, and to avoid regulation of insurance rates except under circumstances specifically authorized under the provisions of this title. Such policy requires that all persons having to do with insurance services to the public be at all times actuated by good faith in everything pertaining thereto, abstain from deceptive or misleading practices, and keep, observe, and practice the principles of law and equity in all matters pertaining to such business.

Source: L. 2003: Entire article RC&RE, p. 587, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-101 as it existed prior to 2002.

10-1-102. Definitions.

As used in this title 10, unless the context otherwise requires:

1. "Actuary" means a person designated by the commissioner as a qualified actuary based on requirements set forth in rules promulgated by the commissioner.
2. "Admitted assets" includes the investments that are admitted assets of a domestic company under parts 1 and 2 of article 3 and part 4 of article 7 of this title and, in addition thereto, includes:
   1. Those assets defined as admitted by nationally recognized insurance statutory accounting principles; and
   2. Other assets deemed by the commissioner to be available for the payment of losses and claims, at values to be determined by the commissioner.
3. "Admitted company" or "authorized company" designates companies duly qualified and licensed to transact business in this state, under the provisions of this title. "Nonadmitted companies" or "unauthorized companies" designates companies not licensed to transact business in this state, under the provisions of this title (except article 15) and article 14 of title 24, C.R.S.

   (3.5) "Bail insurance company" means an insurer engaged in the business of writing bail bonds through bonding agents and subject to regulation by the division.

   (3.7) "Bail recovery" means actions taken by a person other than a peace officer to apprehend an individual or take an individual into custody because of the individual's failure to comply with bail conditions.

4. "Charitable gift annuity" means an annuity that:
   1. Meets the definition and standards contained in section 501 (m)(5) of the federal "Internal Revenue Code of 1986", as amended;
   2. Contains on its face the following statement: "This annuity is not issued by an insurance company nor regulated by the Colorado division of insurance and is not protected by any state guaranty fund or protective association."
   3. Is issued or guaranteed by an organization that at all times during the three years preceding the date of the issuance of such annuity:
      1. Was qualified to receive contributions described in section 170 (c) of the federal "Internal Revenue Code of 1986", as amended; and
      2. If required as a condition of such qualification by provisions of the federal "Internal Revenue Code of 1986", as amended, was in receipt of notification from the federal internal revenue service that such organization was so qualified.
5. "Commissioner" or "insurance commissioner" means the commissioner of insurance.
6. 1. "Company", "corporation", "insurance company", or "insurance corporation" includes all corporations, associations, partnerships, or individuals engaged as insurers in the business of insurance, including the attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurer or interinsurance exchange, or suretyship except fraternal or benevolent orders and societies.
   2. "Company", "corporation", "insurance company", or "insurance corporation" does not include health maintenance organizations unless the specific provision of law by its terms applies to health maintenance organizations.
   3. For the purposes of a "company", "corporation", or "insurance company", a reciprocal insurer shall be considered a single economic entity.

   (6.5) "Disqualified insurance company" means a company licensed as a captive insurance company under the laws of this state or the laws of another jurisdiction with gross receipts for the taxable year that consist fifty percent or less of premiums from arrangements that constitute insurance for federal income tax purposes.

7. "Division" means the division of insurance.
8. "Domestic" designates those companies incorporated or formed in this state.
9. "Foreign", when used without limitation, includes all those companies formed by authority of any other state or government.
10. "Institution" means any entity including, but not limited to, a corporation, a joint-stock company, a limited liability company, an association, a bank, a trust, a partnership, a joint venture, a special district, a government, or a quasi-governmental agency.
11. "Insurable interest in property" means every interest in property or any relation thereto, or liability in respect thereof, of such a nature that a contemplated peril might directly damnify the insured.
12. "Insurance" means a contract whereby one, for consideration, undertakes to indemnify another or to pay a specified or ascertainable amount or benefit upon determinable risk contingencies, and includes annuities.
13. "Insurer" means every person engaged as principal, indemnitor, surety, or contractor in the business of making contracts of insurance.
14. "Motor vehicle rental agreement" means an agreement for the rental of a motor vehicle for transportation purposes, for a period of no more than ninety days, in return for a fee that is calculated on a daily, weekly, or monthly basis.
15. "Motor vehicle rental company" means an entity that is in the business of renting, pursuant to motor vehicle rental agreements, motor vehicles that do not come within the definition of a commercial motor vehicle as set forth in section 42-2-402 (4), C.R.S.
16. "Nonadmitted assets" includes, but is not limited to, those assets defined as nonadmitted by nationally recognized insurance statutory accounting principles. Nonadmitted assets shall not be taken into account in determining the financial condition of a company.
17. 1. "Qualified United States financial institution" means an institution that is:
       1. Organized or, in the case of a United States office of a foreign banking organization, licensed under the laws of the United States or any state thereof; and
       2. Regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks, trust companies, or savings and loan associations.
    2. If any qualified United States financial institution issues letters of credit, such institution shall have been determined by either the commissioner or the securities valuation office of the national association of insurance commissioners to meet such standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the commissioner.
    3. If any qualified United States financial institution operates a trust, such institution shall be eligible to operate as a fiduciary of a trust and shall have been granted authority to operate with fiduciary powers.
18. "Real estate" and "real property" include fee simple and leasehold estates therein.
19. "Transact" as applied to insurance means and includes any of the following:
    1. Solicitation and inducement;
    2. Negotiations preliminary to effectuation of a contract of insurance;
    3. Execution of a contract of insurance;
    4. Transaction of matters subsequent to effectuation of a contract of insurance and arising out of the contract obligations.

Source: L. 2003: Entire article RC&RE, p. 587, § 1, effective July 1. L. 2004: (3) amended, p. 897, § 5, effective May 21. L. 2012: (3) amended and (3.5) and (3.7) added, (HB 12-1266), ch. 280, p. 1491, § 1, effective July 1. L. 2021: IP amended and (6.5) added, (HB 21-1311), ch. 298, p. 1785, § 11, effective June 23.

Editor's note: This section is similar to former § 10-1-102 as it existed prior to 2002.

Cross references: For the legislative declaration in HB 21-1311, see section 1 of chapter 298, Session Laws of Colorado 2021.

10-1-103. Division of insurance - repeal of functions.

1. There is established a division of insurance within the department of regulatory agencies. This division is charged with the execution of the laws relating to insurance, and has a supervising authority over the business of insurance in this state. Offices of the division of insurance shall be provided in the capitol buildings group at Denver, Colorado. Whenever any law of this state refers to the insurance department of the state of Colorado, said law shall be construed as referring to the division of insurance.
2. The commissioner of insurance, before incurring any expense for his or her office and the maintenance thereof, exclusive of salaries and wages, shall make requisition therefor upon and receive the approval of the executive director of the department of personnel as required by law.
3. All direct and indirect expenditures of the division are paid from the division of insurance cash fund, which is hereby created in the state treasury. All fees collected under sections 8-44-204 (7), C.R.S., 8-44-205 (6), C.R.S., 10-2-413, 10-3-108, 10-3-207, 10-3.5-104, 10-3.5-107, 10-12-106, 10-15-103, 10-16-110 (1) and (2), 10-16-111 (1), 10-23-102, 10-23-104, 24-10-115.5 (5), C.R.S., and 29-13-102 (5), C.R.S., not including fees retained under contracts entered into in accordance with section 10-2-402 (5) or 24-34-101, C.R.S., and all taxes collected under section 10-3-209 (4) designated for the division of insurance, are transmitted to the state treasurer, who shall credit the moneys to the division of insurance cash fund. The division shall use all moneys credited to the division of insurance cash fund as provided in this section and in section 24-48.5-106, C.R.S., subject to annual appropriation by the general assembly for the purposes authorized in this title and as otherwise authorized by law. Moneys in the fund do not revert to the general fund or to any other fund. In accordance with section 24-36-114, C.R.S., all interest derived from the deposit and investment of moneys in the fund is credited to the general fund.

   (3.5) Repealed.

4. The division of insurance shall adopt a seal with the words "commissioner of insurance of the state of Colorado" and such other design as the commissioner may prescribe engraved thereon, by which it shall authenticate its proceedings, and of which the courts of this state shall take judicial notice. All copies of papers, certified by the commissioner and sealed with the seal of the division, shall have the same force and validity as the originals thereof in any suit or proceeding in any court in this state.
5. The office of the division of insurance is a public office. Except as otherwise provided by law, the documents, materials, and information of the office or on file in the office are public records of this state, and information shall be furnished to anyone applying for the information; except that documents, materials, and information provided by the regulatory officials of any state, federal agency, or foreign country and by the national association of insurance commissioners shall be given confidential treatment if such documents, materials, and information are treated as confidential in such other state or foreign country or by such other federal agency or the national association of insurance commissioners. Notwithstanding any provision of this subsection (5) to the contrary, the commissioner or the commissioner's designee may share otherwise confidential documents, materials, and information with regulatory officials of any state, federal agency, or foreign country and with the national association of insurance commissioners if the association or the regulatory official of the other state, federal agency, or foreign country agrees and has the legal authority to maintain the same level of confidentiality as applies to the documents, materials, and information under Colorado law.
6. 1. The provisions of section 24-34-104 , C.R.S., concerning the termination schedule for regulatory bodies of this state, unless extended as provided in that section, are applicable to the division of insurance created by this section.
   2. 1. 1. Repealed. (b) (I) (A) Repealed.
         2. (Deleted by amendment, L. 2006, p. 75 , § 1, effective March 27, 2006.) (B.5) and (C) (Deleted by amendment, L. 2010, (HB 10-1220), ch. 197, p. 849, § 1, effective July 1, 2010.) (D) Except as otherwise provided in section 24-34-104 (31)(a)(I), the functions of the division of insurance are repealed, effective September 1, 2030, pursuant to this section and section 24-34-104. (E) (Deleted by amendment, L. 2010, (HB 10-1220), ch. 197, p. 849, § 1, effective July 1, 2010.)
      2. Prior to such repeal, the division of insurance shall be reviewed as provided for in section 24-34-104, C.R.S.

Source: L. 2003: Entire article RC&RE, p. 590, § 1, effective July 1. L. 2004: (3) amended, p. 1253, § 2, effective May 27. L. 2005: (6) amended, p. 761, § 11, effective June 1. L. 2006: (6)(b)(I)(B) and (6)(b)(I)(D) amended and (6)(b)(I)(B.5) and (6)(b)(I)(E) added, p. 75, § 1, effective March 27; (5) amended, p. 959, § 2, effective January 1, 2007. L. 2007: (6)(b)(I)(B.5) amended, p. 339, § 1, effective July 1. L. 2008: (6)(b)(I)(C) amended, p. 209, § 1, effective March 26. L. 2010: (6)(b)(I)(A), (6)(b)(I)(B.5), (6)(b)(I)(C), (6)(b)(I)(D), and (6)(b)(I)(E) amended, (HB 10-1220), ch. 197, p. 849, § 1, effective July 1. L. 2012: (3) and (6)(b)(I)(D) amended and (6)(b)(I)(A) repealed, (HB 12-1266), ch. 280, p. 1491, § 2, effective July 1. L. 2016: (6)(b)(I)(D) amended, (HB 16-1192), ch. 83, p. 232, § 5, effective April 14. L. 2017: (6)(b)(I)(D) amended, (SB 17-249), ch. 283, p. 1544, § 2, effective June 1; (5) amended, (HB 17-1231), ch. 284, p. 1575, § 14, effective January 1, 2018. L. 2020: (3.5) added, (HB 20-1406), ch. 178, p. 811, § 5, effective June 29. L. 2021: (3.5) repealed, (SB 21-266), ch. 423, p. 2795, § 7, effective July 2.

Editor's note: This section is similar to former § 10-1-103 as it existed prior to 2002.

Cross references: For the legislative declaration contained in the 2006 act amending subsection (5), see section 1 of chapter 211, Session Laws of Colorado 2006.

10-1-104. Commissioner of insurance - other employees.

1. The commissioner of insurance is the head of the division of insurance. The commissioner shall be appointed by, and serve at the pleasure of, the governor, subject to confirmation of the appointment by the senate pursuant to section 23 of article IV of the state constitution. The commissioner shall be a person well versed in insurance, and an elector of the state of Colorado, and shall have no pecuniary interest in any insurance company or agency directly or indirectly other than as a policyholder.
2. The commissioner shall have such employees as may be required for the transaction of the business of the office of the commissioner. One or more shall be deputy commissioners of insurance who are authorized in all matters to act as and for the commissioner of insurance in the absence of the commissioner. Examiners shall be classified as senior and junior. A senior examiner shall have had three full years' experience in the examination of insurance companies as an employee of a state insurance department. The salary and term of office of the commissioner and the employees of the division shall be fixed pursuant to section 13 of article XII of the state constitution.

Source: L. 2003: Entire article RC&RE, p. 592, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-104 as it existed prior to 2002.

10-1-105. Actuary.

The commissioner may maintain in the division an actuary who is experienced, skilled, and fully competent to perform the actuarial duties of the division and to assist in or take charge of examinations of insurance companies under the general direction of the commissioner.

Source: L. 2003: Entire article RC&RE, p. 592, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-106 as it existed prior to 2002.

Cross references: For the oath required of an actuary, see § 10-1-106.

10-1-106. Oath required of insurance commissioner and actuary.

The commissioner and the actuary, before entering upon their duties, shall take and subscribe to the oath required by the constitution of Colorado, which oath shall be filed in the office of the secretary of state.

Source: L. 2003: Entire article RC&RE, p. 592, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-105 as it existed prior to 2002.

Cross references: For the oath of office, see Colo. Const., art. XII, § 8.

10-1-107. Personal fees prohibited.

Neither the commissioner nor any of the commissioner's employees shall be directly or indirectly employed by any insurance company, association, or society, in any capacity, or be directly or indirectly interested in any such insurance corporation, except as a policyholder; nor shall they or any of them charge any such insurance corporation or official any fee or take any valuable thing in payment for any service or otherwise, unless payment for such service is specifically authorized by law. The penalty for violation of this section shall be removal from office.

Source: L. 2003: Entire article RC&RE, p. 592, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-107 as it existed prior to 2002.

Cross references: For the official fees to be paid by insurance companies, see § 10-3-207.

10-1-108. Duties of commissioner - reports - publications - fees - disposition of funds - adoption of rules - examinations and investigations.

1. It is the duty of the commissioner to:
   1. File in offices of the division, and safely keep, all books and papers required by law to be filed therein and to keep and preserve in permanent form a full record of the commissioner's proceedings, including a concise statement of the condition of such insurance companies reported to or examined by the commissioner;
   2. Issue certificates of authority to transact insurance business to any insurance companies that fully comply with the laws of this state;
   3. Issue such other certificates as required by law in the organization of insurance companies and the transaction of the business of insurance; and
   4. Generally, do and perform with justice and impartiality all such duties as are or may be imposed on the commissioner by the laws in relation to the business of insurance in this state.
2. The commissioner shall require every domestic insurance company to keep its books, records, accounts, and vouchers in such a manner that the commissioner or the commissioner's authorized representatives may readily verify its annual statements and ascertain whether the company is solvent and has complied with the provisions of law. The commissioner shall annually make a tabular statement and synopsis of the several statements as accepted by the commissioner.
3. The commissioner shall furnish to all insurance companies doing business in this state blanks for the filing of statements as required by law. The commissioner, on retiring from office, shall deliver to his or her qualified successor all furniture, papers, and property pertaining to the commissioner's office.
4. It is the duty of the commissioner to examine all requests and applications for licenses to be issued under the authority of part 4 of article 2 of this title, and the commissioner is authorized to refuse to issue any such licenses until the commissioner is satisfied of the qualifications and general fitness of the applicant in accordance with the requirements of the insurance laws.
5. It is the duty of the commissioner to make such investigations and examinations as are authorized by this title (except article 15) and article 14 of title 24, C.R.S., and to investigate such information as is presented to the commissioner by authority that the commissioner believes to be reliable pertaining to violation of the insurance laws of Colorado, and it is the commissioner's duty to present the result of such investigations and examinations for further investigation and prosecution to either the district attorney of the proper judicial district or the attorney general when, in the commissioner's opinion, such violations justify such action.
6. Any publication circulated in quantity outside the executive branch shall be issued in accordance with the provisions of section 24-1-136, C.R.S.
7. 1. It is the duty and responsibility of the commissioner to supervise the business of insurance in this state to assure that it is conducted in accordance with the laws of this state and in such a manner as to protect policyholders and the general public.
   2. In complying with this subsection (7), the commissioner shall:
      1. Encourage the fair treatment of health-care providers, including primary care providers;
      2. Encourage policies and developments, including increased investments in primary care, that decrease health disparities and improve the quality, efficiency, and affordability of health-care service delivery and outcomes; and
      3. View the health-care system as a comprehensive entity and encourage and direct health insurers toward policies that advance the welfare of the public through overall efficiency, affordability, improved health-care quality, and appropriate access.
8. It is the duty of the commissioner to examine all requests and applications from insurers for certificates of authority to be issued pursuant to section 10-3-105. The commissioner is authorized to refuse to issue any such certificates of authority until the commissioner is reasonably satisfied as to the qualifications and general fitness of the insurer to comply with the requirements of the provisions of this title (except article 15) and article 14 of title 24, C.R.S.
9. It is the duty of the commissioner to transmit all surcharges, costs, taxes, penalties, and fines collected by the division of insurance under any provision of this title (except article 15) and article 14 of title 24, C.R.S., to the department of the treasury. All funds so transmitted shall be credited to the general fund; except that any funds collected by the commissioner as reimbursement for out-of-state travel costs in conjunction with the examination of an insurance company or with an activity to improve regulation of insurance companies are hereby continuously appropriated to the division of insurance in addition to any other funds appropriated for its normal operation.
10. It is the duty of the commissioner to encourage the dissemination to the public of general information concerning insurance by those engaged in the business of insurance, so as to work toward informed choices of insurance needs and options.
11. It is the duty of the commissioner to evaluate insurance policies for long-term care to determine their compliance with the provisions of article 19 of this title and to provide insurance companies with a written statement indicating the results of such determination.
12. It is the duty of the commissioner to oversee the operation of electronic data interchange projects for purposes of uniform billing and electronic data exchange for health benefit coverages in Colorado. In carrying out such duties, the commissioner shall coordinate with the departments of labor and employment, public health and environment, and health care policy and financing, as appropriate.
13. 1. If determined appropriate for purposes of licensure of provider networks and individual providers as provided in section 6-18-302 (1)(b), C.R.S., the commissioner may adopt rules after consultation with providers and other appropriate persons that set forth standards or requirements specific to licensed provider networks or licensed individual providers concerning solvency and operational capacity or the performance of services consistent with the extent of risk being accepted by the licensed provider network or licensed individual provider.
    2. In determining the need for and the content of such rules, the commissioner shall take into consideration:
       1. The differences between licensed provider networks or licensed individual providers and the type, amount, and extent of risk they accept and services they provide as compared with that accepted by traditional sickness and accident insurers, nonprofit hospital, medical-surgical, and health service corporations, and health maintenance organizations;
       2. The types of information the commissioner would need to assess a provider network or individual provider's ability to accept and manage risk and monitor material changes in the financial solvency or operational capabilities of a provider network or individual provider;
       3. The need to protect consumers, monitor the financial solvency of licensed provider networks and licensed individual providers, and assure the provision of services to consumers, including reasonable access to coverage, according to contractual obligations; and
       4. Whether such rules would give a licensed provider network or licensed individual provider an unreasonable competitive advantage or disadvantage as compared to traditional insurers, nonprofit hospital, medical-surgical, and health service corporations, and health maintenance organizations offering similar products under similar circumstances.
    3. The commissioner may also consider whether rates are excessive, inadequate, or unfairly discriminatory.
    4. The commissioner may establish a fee to cover the direct and indirect costs of the regulation of provider networks pursuant to the provisions of this subsection (13) and part 3 of article 18 of title 6, C.R.S.

Source: L. 2003: Entire article RC&RE, p. 593, § 1, effective July 1. L. 2004: (5), (8), and (9) amended, p. 897, § 6, effective May 21. L. 2012: (5), (8), and (9) amended, (HB 12-1266), ch. 280, p. 1492, § 3, effective July 1. L. 2019: (7) amended, (HB 19-1233), ch. 194, p. 2121, § 3, effective May 16.

Editor's note: This section is similar to former § 10-1-108 as it existed prior to 2002.

Cross references: For the legislative declaration in HB 19-1233, see section 1 of chapter 194, Session Laws of Colorado 2019.

10-1-109. Rules of commissioner.

1. The commissioner may establish, and from time to time amend, such reasonable rules as are necessary to enable the commissioner to carry out the commissioner's duties under the laws of the state of Colorado.
2. The commissioner shall adopt rules to ensure that payments to the subsequent injury fund created in section 8-46-101, C.R.S., the workers' compensation cash fund, created in section 8-44-112 (7), C.R.S., the cost containment fund created in section 8-14.5-108, C.R.S., and the major medical insurance fund created in section 8-46-202, C.R.S., from surcharges on premiums paid for policies of workers' compensation insurance that feature deductibles in excess of the limit set forth in section 8-44-111 (1), C.R.S., reflect the value of any reduction in premium achieved through the use of such deductibles. Such rules shall apply only to claims made on policies issued or renewed after the effective date of the rules. In adopting such rules, the commissioner shall determine the most effective method of establishing the value of deductibles in excess of such limits and ensuring that payments reflect such value.

Source: L. 2003: Entire article RC&RE, p. 595, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-109 as it existed prior to 2002.

Cross references: For the rule-making procedures, see article 4 of title 24.

10-1-110. Grounds and procedure for suspension or revocation of certificate or license of entities.

1. The certificate of authority of an insurance company to do business in this state may be revoked or suspended by the commissioner for any reason specified in this title and article 14 of title 24, C.R.S. Specifically, the certificate may be suspended or revoked by the commissioner for reasons that include, but are not limited to:
   1. Insolvency or impairment, as defined in section 10-3-212;
   2. Failure to meet the requirements of section 10-3-201;
   3. Refusal or failure to submit an annual report, as required by section 10-3-109, or any other report required by law or by lawful order of the commissioner;
   4. Doing an unauthorized insurance business in another state, as set forth in section 10-1-117;
   5. Failure to comply with the provisions of its own charter or bylaws, if such failure renders its operation hazardous to the public or to its policyholders;
   6. Failure to submit to examination or any legal obligation relative thereto;
   7. Refusal to pay the cost of examination, as authorized by law;
   8. Use of methods that, although not otherwise specifically proscribed by law, nevertheless render its operation hazardous, or its condition unsound, to the public or to its policyholders;
   9. Failure to otherwise comply with the law of this state, if such failure renders its operation hazardous to the public or to its policyholders;
   10. Use of practices or existence of conditions that render its financial position unsound to the public or its policyholders.
2. If the commissioner finds upon examination, hearing, or other evidence that any foreign or domestic insurance company has committed any of the acts specified in subsection (1) of this section, or any other act specified in this title and article 14 of title 24, C.R.S., for which the penalty is suspension or revocation of the certificate of authority, the commissioner may suspend or revoke such certificate of authority, if he or she deems it in the best interest of the public and the policyholders of the company, notwithstanding any other provision of said references. Notice of any revocation shall be published in one or more daily newspapers in Denver that have a general state circulation. Before suspending or revoking any certificate of authority of an insurance company, the commissioner shall grant the company fifteen days in which to show cause why such action should not be taken. Any final decision of the commissioner to suspend or revoke a certificate of authority or license of any person or entity regulated by the division of insurance shall be subject to judicial review by the court of appeals pursuant to section 24-4-106 (11), C.R.S.
3. If the commissioner suspends the license or certificate of authority of any entity regulated by the division of insurance, such license or certificate may be revoked one year after the date of suspension if the reason for such suspension is not corrected by the entity. The suspension or revocation of a license or certificate of authority of any entity regulated by the division of insurance shall automatically result in the suspension or revocation, as appropriate, of any license of any insurance agent of any such entity.
4. If the commissioner finds upon examination or other evidence that any foreign or domestic insurance company has committed any act specified in subsection (1) of this section, the commissioner after notice and hearing may issue an order requiring that the insurance company cease and desist committing such act. If the commissioner believes an emergency exists, the commissioner may enter a cease-and-desist order at once, and a hearing shall be held as soon as practicable. Pending such hearing and decision thereon, the emergency order shall remain in effect subject to the power of the commissioner on the commissioner's own motion or on petition to vacate such order.

Source: L. 2003: Entire article RC&RE, p. 596, § 1, effective July 1. L. 2012: IP(1) and (2) amended, (HB 12-1266), ch. 280, p. 1493, § 4, effective July 1.

Editor's note: This section is similar to former § 10-1-111 as it existed prior to 2002.

10-1-111. Invoking aid of courts.

The commissioner, through the attorney general, may invoke the aid of the courts through injunction or other proper process, mandatory or otherwise, to enforce any proper order made by the commissioner or action taken by the commissioner; but nothing in this title (except article 15) and article 14 of title 24, C.R.S., shall be construed to prevent the company or person affected by any order, ruling, proceeding, act, or action of the commissioner, or any person acting on behalf and at instance of the commissioner, from testing the validity of the same in any court of competent jurisdiction, through injunction, appeal, or other proper process or proceeding, mandatory or otherwise.

Source: L. 2003: Entire article RC&RE, p. 597, § 1, effective July 1. L. 2004: Entire section amended, p. 898, § 7, effective May 21. L. 2012: Entire section amended, (HB 12-1266), ch. 280, p. 1493, § 5, effective July 1.

Editor's note: This section is similar to former § 10-1-112 as it existed prior to 2002.

10-1-112. Policy conditions required by other states.

The policies of a domestic insurance company, when issued or delivered in any other state, territory, district, or country, may contain any provision required by the laws of the state, territory, district, or country in which the same are issued, anything in this title (except article 15) and article 14 of title 24, C.R.S., to the contrary notwithstanding.

Source: L. 2003: Entire article RC&RE, p. 597, § 1, effective July 1. L. 2004: Entire section amended, p. 898, § 8, effective May 21. L. 2012: Entire section amended, (HB 12-1266), ch. 280, p. 1493, § 6, effective July 1.

Editor's note: This section is similar to former § 10-1-115 as it existed prior to 2002.

10-1-113. No seal required on policies.

All policies or contracts made or entered into by any domestic company may be made with or without the seal thereof. The policies or contracts shall be subscribed by the president or such other officers as may be designated by the bylaws for that purpose, and shall be attested by the secretary, and, being so subscribed, shall be obligatory upon such company.

Source: L. 2003: Entire article RC&RE, p. 598, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-116 as it existed prior to 2002.

10-1-114. Sale of premium notes prohibited.

It is unlawful for any insurance company or any agent thereof who has accepted a premium note in payment for a policy of insurance to hypothecate, sell, assign, dispose of, or attempt to collect said note prior to the delivery of said insurance policy to the applicant.

Source: L. 2003: Entire article RC&RE, p. 598, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-118 as it existed prior to 2002.

10-1-115. Penalty.

If any insurance company or any agent of any such company violates any of the provisions of section 10-1-114, the commissioner has the power and is authorized to revoke the certificate of authority of any company so offending or to cancel the license of any such agent who violates any provisions of section 10-1-114.

Source: L. 2003: Entire article RC&RE, p. 598, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-119 as it existed prior to 2002.

Cross references: For the revocation of a certificate of authority to do business, see § 10-1-110.

10-1-116. Defamation of other companies.

[ Editor's note: This version of this section is effective until March 1, 2022. ] It is unlawful for any insurance company doing business in this state, or any officer, director, clerk, employee, or agent thereof, to make, verbally or otherwise, publish, print, distribute, or circulate, or cause the same to be done, or in any way to aid, abet, or encourage the making, printing, publishing, distributing, or circulating of any pamphlet, circular, article, literature, or statement of any kind that is defamatory of any other insurance company doing business in this state, or licensed to sell its capital stock within this state, that contains any false and malicious criticism or false and malicious statement calculated to injure such company in its reputation or business. Any officer, director, clerk, employee, or agent of any insurance company violating the provisions of this section is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than five hundred dollars, or by imprisonment in the county jail for a term of not more than twelve months, or by both such fine and imprisonment.

10-1-116. Defamation of other companies.

[ Editor's note: This version of this section is effective March 1, 2022. ] It is unlawful for any insurance company doing business in this state, or any officer, director, clerk, employee, or agent thereof, to make, verbally or otherwise, publish, print, distribute, or circulate, or cause the same to be done, or in any way to aid, abet, or encourage the making, printing, publishing, distributing, or circulating of any pamphlet, circular, article, literature, or statement of any kind that is defamatory of any other insurance company doing business in this state, or licensed to sell its capital stock within this state, that contains any false and malicious criticism or false and malicious statement calculated to injure such company in its reputation or business. Any officer, director, clerk, employee, or agent of any insurance company violating the provisions of this section commits a petty offense.

Source: L. 2003: Entire article RC&RE, p. 598, § 1, effective July 1. L. 2021: Entire section amended, (SB 21-271), ch. 462, p. 3146, § 107, effective March 1, 2022.

10-1-117. Company unauthorized in other states.

If, upon investigation, the commissioner finds that any insurance company incorporated under the laws of Colorado is doing business in another state or territory without having first procured a license or authority from such state or territory, if any is required, authorizing it to do business therein, the commissioner may revoke the authority of such company to do business in this state.

Source: L. 2003: Entire article RC&RE, p. 598, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-121 as it existed prior to 2002.

Cross references: For the revocation of a certificate of authority to do business, see § 10-1-110.

10-1-118. Foreign companies - unsatisfied judgments - suspension.

1. If a judgment against a foreign insurance company is unsatisfied, and execution has issued on said judgment, and the return of the sheriff discloses that the sheriff cannot fully satisfy such judgment, the judgment creditor or judgment creditor's attorney may file with the commissioner, in triplicate, a complaint setting forth such facts. The commissioner shall mail a copy of such complaint to the home office of such insurance company, at the address shown in the records of the division of insurance, and a copy to the Colorado office or the Colorado general agent of such insurance company.
2. If said insurance company does not, within thirty days after such mailing, pay and discharge said judgment or show good cause to the commissioner for the failure to pay such judgment, the commissioner, upon satisfactory proof of the allegations of the complaint, shall forthwith suspend the license or right of such insurance company to do business in this state. If good cause, previously shown, ceases to exist and the judgment remains unpaid, the commissioner shall suspend such license or right.
3. The commissioner shall reinstate the license or right to do business in this state when the insurance company has fully paid such judgment.

Source: L. 2003: Entire article RC&RE, p. 598, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-122 as it existed prior to 2002.

Cross references: For the suspension of a certificate of authority to do business, see § 10-1-110.

10-1-119. Insurance vending machines prohibited.

No policy or contract of insurance of any kind shall be sold or dispensed through any mechanical device or vending machine, but this section shall not be construed as to prevent the use of office machines of any type by an insurance company. Insurance shall be sold only by an insurance producer, as defined in section 10-2-103 (6).

Source: L. 2003: Entire article RC&RE, p. 599, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-123 as it existed prior to 2002.

10-1-120. Reporting of medical malpractice claims.

1. Each insurance company licensed to do business in this state and engaged in the writing of medical malpractice insurance for licensed practitioners shall send to the Colorado medical board, in the form prescribed by the commissioner of insurance, information relating to each medical malpractice claim against a licensed practitioner that is settled or in which judgment is rendered against the insured.
2. The insurance company shall provide such information as is deemed necessary by the Colorado medical board to conduct a further investigation and hearing.

Source: L. 2003: Entire article RC&RE, p. 599, § 1, effective July 1. L. 2010: Entire section amended, (HB 10-1260), ch. 403, p. 1977, § 49, effective July 1.

Editor's note: This section is similar to former § 10-1-124 as it existed prior to 2002.

10-1-120.5. Reporting of malpractice claims against nurses.

1. Each insurance company licensed to do business in this state and engaged in writing malpractice insurance for nurses shall send to the state board of nursing, in the form prescribed by the commissioner, information relating to each malpractice claim against a licensed nurse that is settled or in which judgment is rendered against the insured.
2. The information must include information deemed necessary by the state board of nursing to conduct a further investigation and hearing.

Source: L. 2020: Entire section added, (HB 20-1216), ch. 190, p. 867, § 7, effective July 1.

Cross references: For the legislative declaration in HB 20-1216, see section 1 of chapter 190, Session Laws of Colorado 2020.

10-1-121. Reporting of malpractice claims against physical therapists.

1. Each insurance company licensed to do business in this state and engaged in the writing of malpractice insurance for physical therapists licensed under article 285 of title 12 shall send to the director of the division of professions and occupations, in the department of regulatory agencies, in the form prescribed by the commissioner of insurance, information relating to each claim involving physical therapy malpractice or against any such physical therapist that is settled or in which judgment is rendered against the insured.
2. Every insurance company licensed to do business in this state that makes payment under a policy of insurance in settlement of a claim of physical therapy malpractice, or in satisfaction of a judgment for such malpractice, shall report to the secretary of health and human services, in accordance with 42 U.S.C. secs. 11131 and 11134, the following information:
   1. The name of any physical therapist for whose benefit the payment is made;
   2. The amount of the payment;
   3. The name, if known, of any hospital with which the physical therapist is affiliated or associated;
   4. A description of the acts or omissions and injuries or illnesses upon which the action or claim was based; and
   5. Such other information as the secretary of health and human services determines is required for appropriate interpretation of the information so reported.

Source: L. 2003: Entire article RC&RE, p. 599, § 1, effective July 1. L. 2019: (1) amended, (HB 19-1172), ch. 136, p. 1650, § 29, effective October 1.

Editor's note: This section is similar to former § 10-1-124.2 as it existed prior to 2002.

10-1-122. Reporting of malpractice claims against architects.

Each insurance company doing business in this state and engaged in the writing of malpractice insurance for architects shall send to the state board of licensure for architects, professional engineers, and professional land surveyors, in the form prescribed by the commissioner, information relating to each malpractice claim against a licensed architect or a corporation, partnership, or group of persons practicing architecture that is settled or in which judgment is rendered against the insured within ninety days after the effective date of such settlement or judgment.

Source: L. 2003: Entire article RC&RE, p. 600, § 1, effective July 1. L. 2006: Entire section amended, p. 741, § 3, effective July 1.

Editor's note: This section is similar to former § 10-1-124.5 as it existed prior to 2002.

Cross references: For the provisions concerning architects, see part 4 of article 120 of title 12.

10-1-123. Reporting of claims against plumbers.

Each insurance company licensed to do business in this state and engaged in the writing of insurance for plumbers shall send within ninety days to the examining board of plumbers, in the form prescribed by the commissioner, information relating to each malpractice claim against a licensed plumber that is settled or in which judgment is rendered against the insured.

Source: L. 2003: Entire article RC&RE, p. 600, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-124.6 as it existed prior to 2002.

Cross references: For the provisions concerning plumbers, see article 155 of title 12.

10-1-124. Reporting of podiatric malpractice claims.

1. Each insurance company licensed to do business in this state and engaged in the writing of malpractice insurance for licensed podiatrists shall send to the Colorado podiatry board, in the form prescribed by the commissioner, information relating to each malpractice claim against a licensed podiatrist that is settled or in which judgment is rendered against the insured.
2. Such information shall include any information deemed necessary by the Colorado podiatry board to conduct a further investigation and hearing.

Source: L. 2003: Entire article RC&RE, p. 600, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-124.7 as it existed prior to 2002.

Cross references: For the provisions concerning podiatrists, see article 290 of title 12.

10-1-125. Reporting of malpractice claims against optometrists.

1. Each insurance company licensed to do business in this state and engaged in the writing of malpractice insurance for optometrists shall send to the state board of optometry, in the form prescribed by the commissioner, information relating to each malpractice claim against a licensed optometrist that is settled or in which judgment is rendered against the insured.
2. Such information shall include any information deemed necessary by the state board of optometry to conduct a further investigation and hearing.

Source: L. 2003: Entire article RC&RE, p. 601, § 1, effective July 1. L. 2011: Entire section amended, (SB 11-094), ch. 129, p. 450, § 28, effective April 22.

Editor's note: This section is similar to former § 10-1-124.9 as it existed prior to 2002.

Cross references: For the provisions concerning optometrists, see article 275 of title 12.

10-1-125.3. Reporting of malpractice claims against pharmacists and pharmacies.

1. Each insurance company licensed to do business in this state and engaged in writing malpractice insurance for licensed pharmacists and registered pharmacies, and each pharmacist or pharmacy that self-insures, shall send to the state board of pharmacy, in the form prescribed by the commissioner in collaboration with the state board of pharmacy, information relating to each malpractice claim against a licensed pharmacist or registered pharmacy that is settled or in which judgment is rendered against the insured.
2. The insurance company or self-insured pharmacist or pharmacy shall provide information relating to each malpractice claim that the state board of pharmacy deems necessary to conduct a further investigation and hearing.

Source: L. 2021: Entire section added, (SB 21-094), ch. 314, p. 1944, § 32, effective September 1.

Editor's note: This section is similar to former § 12-280-111 (1) and (2) as they existed prior to 2021. For a detailed comparison of this section, see SB 21-094, L. 2021, p. 1944 .

10-1-125.5. Reporting of malpractice claims against naturopathic doctors.

Each insurance company licensed to do business in this state and engaged in writing malpractice insurance for naturopathic doctors registered under article 250 of title 12 shall send to the director of the division of professions and occupations in the department of regulatory agencies, in the form prescribed by the commissioner, information relating to each malpractice claim against a registered naturopathic doctor that is settled or in which judgment is rendered against the insured naturopathic doctor. The insurance company shall include any information the director determines necessary to enable the director to conduct a further investigation and hearing.

Source: L. 2017: Entire section added, (SB 17-106), ch. 302, p. 1649, § 6, effective August 9. L. 2019: Entire section amended, (HB 19-1172), ch. 136, p. 1650, § 30, effective October 1.

10-1-125.7. Reporting of malpractice claims against audiologists.

1. Each insurance company licensed to do business in this state and engaged in the writing of malpractice insurance for audiologists shall send to the director of the division of professions and occupations in the department of regulatory agencies, in the form prescribed by the commissioner, information relating to each malpractice claim against a licensed audiologist that is settled or in which judgment is rendered against the insured.
2. The information must include information deemed necessary by the director of the division of professions and occupations in the department of regulatory agencies to conduct a further investigation and hearing.

Source: L. 2020: Entire section added, (HB 20-1219), ch. 300, p. 1493, § 6, effective September 1.

10-1-126. Training program for persons working with the aging.

The division of insurance shall develop a training program for persons working with the aging on the local level that will enable them to assist the elderly in dealing with their medicare supplemental insurance problems.

Source: L. 2003: Entire article RC&RE, p. 601, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-125 as it existed prior to 2002.

10-1-127. Discretionary use of administrative law judges.

Whenever the commissioner or the division of insurance pursuant to this title or any other provision of law is obligated or authorized to hold a hearing, the commissioner, at his or her discretion, may designate an employee of the division of insurance who has administrative responsibilities to act as a hearing officer or may use the services of an administrative law judge appointed pursuant to part 10 of article 30 of title 24, C.R.S., to conduct the hearing according to the "State Administrative Procedure Act". Any decision by such a designated hearing officer or appointed administrative law judge shall be an initial decision and, in the absence of an appeal to the division of insurance or a review upon motion of the commissioner as provided in section 24-4-105, C.R.S., shall thereupon become the decision of the division of insurance. Any final decision of the commissioner or the division of insurance shall be subject to judicial review by the court of appeals pursuant to section 24-4-106 (11), C.R.S.

Source: L. 2003: Entire article RC&RE, p. 601, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-126 as it existed prior to 2002.

Cross references: For the provisions concerning the "State Administrative Procedure Act", see article 4 of title 24.

10-1-128. Fraudulent insurance acts - immunity for furnishing information relating to suspected insurance fraud - legislative declaration.

1. For purposes of this title 10, articles 40 to 47 of title 8, articles 200, 215, 220, 240, 245, 255, 270, 275, 285, 290, and 300 of title 12, and article 20 of title 44, a fraudulent insurance act is committed if a person knowingly and with intent to defraud presents, causes to be presented, or prepares with knowledge or belief that it will be presented to or by an insurer, a purported insurer, or any producer thereof any written statement as part or in support of an application for the issuance or the rating of an insurance policy or a claim for payment or other benefit pursuant to an insurance policy that the person knows to contain false information concerning any fact material thereto or if the person knowingly and with intent to defraud or mislead conceals information concerning any fact material thereto. For purposes of this section, "written statement" includes a client medical record as such term is defined in section 18-4-412 (2)(a) and any bill for medical services.
2. 1. The general assembly finds and declares that insurance fraud is expensive; that it increases premiums and places businesses at risk; and that it reduces consumers' ability to raise their standards of living and decreases the economic vitality of this state. The general assembly further finds and declares that the state of Colorado must aggressively confront the problem of insurance fraud by facilitating the detection of and reducing the occurrence of fraud through stricter enforcement and deterrence and by encouraging greater cooperation among consumers, the insurance industry, and the state in coordinating efforts to combat insurance fraud.
   2. Colorado has addressed insurance fraud in various statutes, including but not limited to the civil and administrative provisions found in this section, part 4 of article 2 of this title, parts 1, 2, 9, and 11 of article 3 of this title, and numerous other provisions of this title. It has also been addressed in criminal provisions found in parts 1, 2, and 3 of article 2 of title 18, part 1 of article 4 of title 18, part 1 of article 5 of title 18, and section 18-5-205, C.R.S. These statutory provisions impose regulatory oversight and severe civil and criminal penalties on authorized and unauthorized insurance companies and other persons who commit insurance fraud. The purpose of this section is to further improve regulatory oversight of licensed persons who commit insurance fraud and provide additional remedies to aggrieved persons.
3. An allegation of a fraudulent insurance act shall not excuse an insurance company from its duty to promptly investigate a claim.
4. 1. Each insurance company licensed to do business in this state that, in a lawsuit involving a fraudulent insurance act, obtains a judgment or settlement against a person who is licensed by the state of Colorado and whose services are compensated in whole or in part, directly or indirectly, by insurance claim proceeds shall send notice of such settlement or judgment to the appropriate Colorado state licensing board, in the form prescribed by the executive director of the department of regulatory agencies. No cause of action shall arise against any insurance company or individual for providing information as provided in this subsection (4).
   2. Every person who, in a lawsuit involving a fraudulent insurance act, obtains a judgment or settlement against a person who is licensed by the state of Colorado and whose services are compensated in whole or in part, directly or indirectly, by insurance claim proceeds, may send to the appropriate Colorado state licensing board notice of such settlement or judgment. No cause of action shall arise against any person for providing information as provided in this subsection (4).
   3. Every person who obtains a judgment or settlement involving a fraudulent insurance act by an insurance company or an agent of an insurance company may send to the Colorado division of insurance within the department of regulatory agencies notice of such judgment or settlement, including any evidence of a fraudulent insurance act. No cause of action shall arise against any person for providing information as provided in this subsection (4).
5. 1. Every licensed insurance company doing business in Colorado shall prepare, implement, and maintain an insurance anti-fraud plan; except that this subsection (5) shall not apply to entities whose principal business is the assumption of reinsurance, reinsurance agreements, or reinsurance claims transactions. Insurance companies approved by the commissioner under article 5 of this title may be required, as a condition of such approval, to maintain an insurance anti-fraud plan. Each anti-fraud plan shall outline specific procedures, appropriate to the type of insurance provided by the insurance company in Colorado, to:
      1. Prevent, detect, and investigate all forms of insurance fraud, including fraud by the insurance company's employees and agents, fraud resulting from false representations or omissions of material fact in the application for insurance, renewal documents, or rating of insurance policies, claims fraud, and security of the insurance company's data processing systems;
      2. Educate appropriate employees about fraud detection and the company's anti-fraud plan;
      3. Provide for the hiring of or contracting for one or more fraud investigators;
      4. Report suspected or actual insurance fraud to the appropriate law enforcement and regulatory entities in the investigation and prosecution of insurance fraud.
   2. The commissioner of insurance may review a licensed insurance company's anti-fraud plan in connection with a market conduct examination to determine whether such plan complies with the requirements of paragraph (a) of this subsection (5).
   3. Every licensed insurance company doing business in this state shall include, as part of its annual report as required in section 10-3-109, a summary of its anti-fraud efforts as described in paragraph (a) of this subsection (5).
   4. The anti-fraud plan of an insurance company and the summary of anti-fraud efforts prepared as required in paragraph (c) of this subsection (5) are not public records and are exempted from article 72 of title 24, C.R.S.; are proprietary and not subject to public examination; and are not discoverable or admissible under the Colorado rules of civil procedure in any civil litigation.
   5. Any insurance company or producer of an insurance company that has committed a fraudulent insurance act shall be subject to available disciplinary action by the commissioner of insurance.
   6. The responsibility of an insurance company under this section to prevent, detect, and investigate insurance fraud shall not excuse its duty to comply with section 10-3-1104 or any other applicable insurance law.
6. 1. Each insurance company shall provide on all printed applications for insurance, or on all insurance policies, or on all claim forms provided and required by an insurance company, or required by law, whether printed or electronically transmitted, a statement, in conspicuous nature, permanently affixed to the application, insurance policy, or claim form substantially the same as the following:
   2. This subsection (6) shall not apply to reinsurance contracts, reinsurance agreements, or reinsurance claims transactions.

It is unlawful to knowingly provide false, incomplete, or misleading facts or information to an insurance company for the purpose of defrauding or attempting to defraud the company. Penalties may include imprisonment, fines, denial of insurance, and civil damages. Any insurance company or agent of an insurance company who knowingly provides false, incomplete, or misleading facts or information to a policyholder or claimant for the purpose of defrauding or attempting to defraud the policyholder or claimant with regard to a settlement or award payable from insurance proceeds shall be reported to the Colorado division of insurance within the department of regulatory agencies.

Source: L. 2003: Entire article RC&RE, p. 601, § 1, effective July 1. L. 2006: (2)(b) amended, p. 1489, § 8, effective June 1. L. 2019: (1) amended, (HB 19-1172), ch. 136, p. 1651, § 31, effective October 1. L. 2020: (1) amended, (HB 20-1183), ch. 157, p. 695, § 32, effective July 1; (1) amended, (HB 20-1230), ch. 274, p. 1347, § 14, effective September 14.

10-1-129. Fraudulent insurance acts - enforcement.

The attorney general shall have concurrent jurisdiction with the district attorneys of this state to investigate and prosecute allegations of criminal conduct related to insurance fraud pursuant to this title and titles 8 and 18, C.R.S. The cost to the attorney general of such investigations and prosecutions shall be paid from fees collected from entities regulated by the division pursuant to section 24-31-104.5, C.R.S.

Source: L. 2003: Entire article RC&RE, p. 604, § 1, effective July 1. L. 2010: Entire section amended, (HB 10-1385), ch. 204, p. 883, § 3, effective May 5. L. 2012: Entire section amended, (SB 12-110), ch. 158, p. 561, § 5, effective July 1.

Editor's note: This section is similar to former § 10-1-127.5 as it existed prior to 2002.

10-1-130. Availability of sickness, health, and accident insurance.

1. The commissioner shall assess the availability of sickness, health, and accident insurance in Colorado with a view to identifying specific groups of persons to whom such coverage is unavailable by virtue of cost, preexisting condition, or other circumstances.
2. Repealed.

Source: L. 2003: Entire article RC&RE, p. 604, § 1, effective July 1; entire section amended, p. 2053, § 2, effective August 6.

10-1-131. Duties to third parties - rules.

1. Pursuant to rules promulgated by the commissioner, an insurer shall notify any additional insured by endorsement on a general liability policy, whose interests are affected by a claim, of the results of the insurer's investigation of such claim and the status of the claim within a reasonable period of time as determined by the commissioner. Such notice shall include a statement confirming or denying coverage of the claim and, if coverage is denied, the reasons for denying coverage of the claim or any portion of the claim. In the event coverage has not been determined, a copy of the reservation of rights letter shall constitute sufficient notice.
2. Failure to notify any additional insured by endorsement on a general liability policy pursuant to this section shall subject the insurer to the provisions of sections 10-3-1108 and 10-3-1109.
3. The provisions of this section shall not apply to those claims under a general liability policy upon which a lawsuit has been filed.

Source: L. 2003: Entire article RC&RE, p. 604, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-132 as it existed prior to 2002.

10-1-132. Oversight of the general assembly.

Nothing in this title shall limit the ability of the general assembly to direct the accounting principles to be used by insurers authorized in this state in order to create uniformity.

Source: L. 2003: Entire article RC&RE, p. 605, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-133 as it existed prior to 2002.

10-1-133. Consumer insurance council - creation - advisory body - appointment of members - meetings - repeal.

1. There is hereby created in the division the consumer insurance council, also referred to in this section as the "council". The council is an advisory body to the commissioner concerning insurance matters of interest to the public. Nothing in this section divests the commissioner of the commissioner's authority to regulate the business of insurance.
2. 1. The council consists of at least six and not more than fifteen members appointed by the commissioner, all of whom must represent consumer organizations or be consumers who are not engaged, directly or indirectly, in the insurance industry or any other industry, business, or profession that might present a conflict of interest, as determined by the commissioner. To the greatest extent possible, the council must reflect the geographic and demographic diversity of the state. Insurance producers, insurance industry representatives, actively practicing health-care providers, and any other individuals who may have a conflict of interest, as determined by the commissioner, are not eligible for membership on the council.
   2. The commissioner shall appoint members of the council in a timely manner. Members shall serve two-year terms with a maximum of three consecutive terms.
   3. Three or more unexcused absences of a member of the council constitute grounds for the removal of the member. The chair of the council, in consultation with the commissioner, shall determine whether a member with three or more unexcused absences may continue service on the council. If a member is removed, the commissioner shall appoint a new member to serve the remaining portion of the two-year term.
   4. Members of the council shall serve without compensation but are entitled to reimbursement for actual and necessary expenses incurred in traveling to and from council meetings, including any required dependent care and dependent or attendant travel, food, and lodging expenses.
3. 1. The council shall elect a chair from its membership. The chair shall serve a one-year term and may be elected to another one-year term.
   2. The council shall elect a vice-chair from its membership. The vice-chair shall serve in the absence of the chair. The vice-chair shall serve a one-year term and may be elected to another one-year term.
4. 1. The council shall meet quarterly and may request up to four additional meetings per year. All meetings of the council are open to the public. General meetings of the council shall be held at the office of the division. The council may meet in other locations of the state as agreed upon by the council. Members of the council may participate in meetings via telephonic communications.
   2. A council member may request a special meeting. Requests for special meetings must be made to the chair of the council.
   3. All members of the council may request topics of discussion for the council.
   4. The council must act by consensus.
   5. The council may submit recommendations to the commissioner, including legislative recommendations. If the council submits a recommendation to the commissioner, the commissioner shall provide a response to the council, in a timely manner, regarding the recommendation and how the commissioner will address the recommendation.
5. This section is repealed, effective September 1, 2029. Before the repeal, the council is scheduled for review in accordance with section 2-3-1203.

Source: L. 2008: Entire section added, p. 158, § 1, effective July 1; (5.5) added, p. 2255, § 8, effective July 1. L. 2009: (5.5) and (6) amended, (SB 09-292), ch. 369, p. 1940, § 9, effective August 5. L. 2019: Entire section RC&RE, (HB 19-1150), ch. 113, p. 483, § 1, effective August 2.

Editor's note: Subsection (6) provided for the repeal of this section, effective July 1, 2018. (See L. 2008, p. 158 .)

10-1-134. Office of insurance ombudsman - plan - report to joint budget committee.

On or before September 15, 2008, the commissioner shall present a plan to the joint budget committee of the general assembly regarding the establishment of an office of insurance ombudsman. The plan shall include an assessment of the need to establish the office, a plan to implement the office, and the estimated costs associated with establishing and maintaining the office. The plan shall require the ombudsman to assist consumers with issues related to insurance availability, claims processing, coverage questions, and other matters related to insurance consumer education and assistance.

Source: L. 2008: Entire section added, p. 2247, § 2, effective August 5.

10-1-135. Reimbursement for benefits - limitations - notice - definitions - legislative declaration.

1. The general assembly hereby finds and declares that:
   1. When a payer of benefits seeks repayment of the benefits provided to an injured party, the repayment reduces the amount available to the injured party to compensate him or her for injuries and damages other than the cost of medical care and medical services;
   2. Reimbursement or repayment of benefits should not be permitted when the injured party would not be fully compensated for his or her injuries and damages;
   3. It is in the best interests of the citizens of this state to ensure that each insured injured party recovers full compensation for bodily injury caused by the act or omission of a third party, and that such compensation is not diminished by repayment, reimbursement, or subrogation rights of the payer of benefits;
   4. This law regulating insurance and health benefit plans is intended to ensure that an injured party who recovers damages for bodily injuries caused by a third party and receives benefits pursuant to an insurance policy, contract, or benefit plan is fully compensated for his or her injuries and damages before the payer of benefits may seek repayment of benefits provided to the injured party;
   5. In the absence of this section, payers of benefits may seek repayment of benefits out of a recovery obtained by the injured party without paying attorney fees incurred by the injured party in obtaining the recovery, thereby benefitting from attorney services for which they did not pay;
   6. This section is intended to require a payer of benefits to pay a proportionate share of the attorney fees when the payer of benefits is a beneficiary of the attorney services paid for by the injured party.
2. As used in this section, unless the context otherwise requires:
   1. "Benefits" means payment or reimbursement of health-care expenses, health- care services, disability payments, lost wage payments, or any other benefits of any kind, including discounts and write-offs, provided to or on behalf of an injured party under a policy of insurance, contract, or benefit plan with an individual or group, whether or not provided through an employer.
   2. "Injured party" means a person who has sustained bodily injury as the result of the act or omission of a third party, has pursued a personal injury or similar claim against the third party or has made a claim under his or her uninsured or underinsured motorist coverage, and has received benefits as a policyholder, participant, or beneficiary from the payer of benefits. "Injured party" includes the personal representative of the estate of an injured party or the legal representative of a person under a disability as provided in article 81 of title 13, C.R.S.
   3. 1. "Payer of benefits" means any insurer, health maintenance organization, health benefit plan, preferred provider organization, employee benefit plan, other insurance policy or plan, or any other payer of benefits. "Payer of benefits" includes a fiduciary of an insurer, plan, or other payer of benefits.
      2. "Payer of benefits" does not include a program of medical assistance under the "Colorado Medical Assistance Act", articles 4 to 6 of title 25.5, C.R.S., or the children's basic health plan, as defined in article 8 of title 25.5, C.R.S.
   4. "Recovery" means recovery of a monetary award from a third party through either settlement or judgment to compensate an injured party for bodily injury sustained as a result of an act or omission of the third party. "Recovery" includes benefits paid or settlement of claims under uninsured or underinsured motorist coverage pursuant to section 10-4-609.
3. 1. 1. Reimbursement or subrogation pursuant to a provision in an insurance policy, contract, or benefit plan is permitted only if the injured party has first been fully compensated for all damages arising out of the claim. Any provision in a policy, contract, or benefit plan allowing or requiring reimbursement or subrogation in circumstances in which the injured party has not been fully compensated is void as against public policy. (3) (a) (I) Reimbursement or subrogation pursuant to a provision in an insurance policy, contract, or benefit plan is permitted only if the injured party has first been fully compensated for all damages arising out of the claim. Any provision in a policy, contract, or benefit plan allowing or requiring reimbursement or subrogation in circumstances in which the injured party has not been fully compensated is void as against public policy.
      2. This paragraph (a) does not limit the right of an insurer to seek reimbursement or subrogation to recover amounts paid for property damage or the right of an insurer providing uninsured or underinsured motorist coverage pursuant to section 10-4-609 to an injured party to pursue claims against an at-fault third party, and any amounts recovered by such insurer shall not be reduced pursuant to paragraph (c) of this subsection (3).
   2. If the injured party is fully compensated and reimbursement or subrogation of benefits is authorized, the reimbursement or subrogation amount cannot exceed the amount actually paid by the payer of benefits to cover benefits under the policy, contract, or benefit plan or, for health-care services provided on a capitated basis, the amount equal to eighty percent of the usual and customary charge for the same services by health-care providers that provide health-care services on a noncapitated basis in the geographic region in which the services are rendered.
   3. The amount recoverable, if any, by the payer of benefits for reimbursement or subrogation shall be reduced by an amount equal to the payer of benefits' proportionate share of the attorney fees and expenses incurred by or on behalf of the injured party in making the recovery, based on the ratio of the amount of attorney fees and expenses incurred to the amount of the recovery.
   4. 1. If the injured party makes a recovery of an amount that is less than the total amount of coverage available under any third-party liability insurance policy or uninsured or underinsured motorist coverage pursuant to section 10-4-609, there is a rebuttable presumption that the injured party has been fully compensated. If the injured party makes a recovery of an amount equal to the total amount of coverage available under all third-party liability insurance policies and uninsured or underinsured motorist coverages, there is a rebuttable presumption that the injured party has not been fully compensated.
      2. If the injured party obtains a judgment, the amount of the judgment is presumed to be the amount necessary to fully compensate the injured party.
4. 1. 1. Any disputes between the payer of benefits and the injured party regarding entitlement to reimbursement or subrogation shall be resolved in accordance with this paragraph (a), regardless of whether administrative remedies contained in the policy, contract, or benefit plan documents have been exhausted by the injured party. (4) (a) (I) Any disputes between the payer of benefits and the injured party regarding entitlement to reimbursement or subrogation shall be resolved in accordance with this paragraph (a), regardless of whether administrative remedies contained in the policy, contract, or benefit plan documents have been exhausted by the injured party.
      2. If the injured party obtains a recovery that is less than the sum of all damages incurred by the injured party and intends to enforce the requirements of subsection (3) of this section, the injured party shall notify the payer of benefits within sixty days of receipt of each recovery. The notice shall include the total amount and source of the recovery; the coverage limits applicable to any available insurance policy, contract, or benefit plan; and the amount of any costs charged to the injured party. If recovery was obtained through a settlement agreement that contains a confidentiality provision that affects the information required by this subparagraph (II), the confidentiality provision is unenforceable as to the disclosure of the required information.
      3. If the payer of benefits disputes that the injured party's recovery is less than the sum of all damages incurred by the injured party, the dispute shall be resolved by arbitration. The payer of benefits may request arbitration of the dispute to determine the extent to which the payer of benefits may be entitled to share in the recovery pursuant to subsection (3) of this section. The payer of benefits may request arbitration no later than sixty days after receipt of any notice under subparagraph (II) of this paragraph (a).
      4. If the payer of benefits requests arbitration of the dispute, the injured party and the payer of benefits shall jointly choose an arbitrator to resolve the dispute. If the injured party and the payer of benefits cannot agree on an arbitrator, the dispute shall be resolved by a panel of three arbitrators selected as follows:
         1. The injured party shall select one arbitrator;
         2. The payer of benefits shall select one arbitrator; and
         3. The arbitrators chosen by the parties pursuant to sub-subparagraphs (A) and (B) of this subparagraph (IV) shall select the third arbitrator.
   2. If the arbitrator determines that the amount of the recovery does not fully compensate the injured party for his or her damages, the payer of benefits shall have no right to repayment, reimbursement, or subrogation.
5. A payer of benefits shall not deny or refuse to provide any plan benefits otherwise available to an injured party because of the existence of a potential personal injury or similar claim or the resolution of a personal injury or similar claim.
6. 1. 1. Except as provided in subparagraph (II) of this paragraph (a), a payer of benefits shall not bring a direct action for subrogation or reimbursement of benefits against a third party allegedly at fault for the injury to the injured party or an insurer providing uninsured motorist coverage. (6) (a) (I) Except as provided in subparagraph (II) of this paragraph (a), a payer of benefits shall not bring a direct action for subrogation or reimbursement of benefits against a third party allegedly at fault for the injury to the injured party or an insurer providing uninsured motorist coverage.
      2. If an injured party has not pursued a claim against a third party allegedly at fault for the injured party's injuries by the date that is sixty days prior to the date on which the statute of limitations applicable to the claim expires, a payer of benefits may bring a direct action for subrogation or reimbursement of benefits against an at-fault third party. Nothing in this subparagraph (II) precludes an injured party from pursuing a claim against the at-fault third party after the payer of benefits brings a direct action pursuant to this subparagraph (II), and the payer of benefits' right to reimbursement or subrogation is limited by subsection (3) of this section.
   2. A third party shall not include a payer of benefits that is claiming repayment or reimbursement pursuant to subsection (3) of this section as a copayee on any check or draft in payment of a settlement with or judgment for or on behalf of the injured party.
7. 1. A payer of benefits shall not delay, withhold, or otherwise reduce benefits:
      1. Because the obligation to pay benefits results from an act or omission for which a third party may be liable; or
      2. As a means of enforcing or attempting to enforce a claim for reimbursement or subrogation.
   2. Nothing in this subsection (7) prohibits the coordination of benefits between or among payers of benefits.
8. When a payer of benefits obtains reimbursement of benefits paid in accordance with this section, the payer of benefits shall apply the amount of the reimbursement as a credit against any lifetime maximum benefit contained in the policy, plan, or contract under which the benefits were paid.
9. Any language in an insurance policy, contract, or benefit plan that is contrary to this section is void and unenforceable. Although such language is unenforceable, nothing in this section requires an insurer to modify and refile with the commissioner, prior to the standard filing date, an insurance policy, contract, or benefit plan that contains language that is contrary to this section.
10. Nothing in this section modifies:
    1. The requirement of section 13-21-111.6, C.R.S., regarding the reduction of damages based on amounts paid for the damages from a collateral source. The fact or amount of any collateral source payment or benefits shall not be admitted as evidence in any action against an alleged third-party tortfeasor or in an action to recover benefits under section 10-4-609.
    2. Lien rights of hospitals pursuant to section 38-27-101, C.R.S., or of the department of health care policy and financing pursuant to section 25.5-4-301 (5), C.R.S.; or
    3. Subrogation and lien rights granted to workers' compensation carriers or self-insured employers pursuant to section 8-41-203, C.R.S.

Source: L. 2010: Entire section added, (HB 10-1168), ch. 164, p. 575, § 1, effective August 11.

10-1-136. Insurance policies - language other than English.

1. An insurer may conduct transactions in a language other than English.
2. An insurer authorized to offer insurance in this state may provide insurance policies, endorsements, riders, and any explanatory or advertising materials in a language other than English. If an insurer opts to provide an insurance policy, endorsement, or rider to the customer in a language other than English, the insurer must also provide the English version at the same time. In the event of a dispute or complaint regarding the insurance or advertising materials, the English language version of the insurance document controls the resolution of the dispute or complaint.
3. A non-English language policy delivered or issued for delivery in this state is deemed to be in compliance with articles 4 and 16 of this title if the insurer certifies that the policy is translated from an English language policy that is in compliance with this title. An insurer shall maintain copies of all translated policies, endorsements, riders, and any explanatory or advertising materials and make them available for review by the commissioner upon request.

Source: L. 2013: Entire section added, (HB 13-1233), ch. 17, p. 622, § 31, effective August 7. L. 2014: (2) amended, (HB 14-1282), ch. 128, p. 452, § 1, effective August 6.

10-1-137. Electronic delivery of documents - when permitted - definitions - consent - construction with other laws.

1. As used in this section, unless the context otherwise requires:
   1. Delivered or delivery "by electronic means" to a party includes:
      1. Delivery to an electronic mail address at which the party has consented to receive notices or documents; and
      2. Posting on an electronic network or website accessible to the party via the internet, mobile application, computer, mobile device, tablet, or any other electronic device if the party is given separate notice of the posting by either:
         1. Electronic mail to the electronic mail address at which the party has consented to receive notice; or
         2. Any other delivery method that has been consented to by the party.
   2. "Party" means any recipient of a notice or document required as part of an insurance transaction. The term includes an applicant, an insured, a policyholder, and an annuity contract holder.
2. Subject to subsection (4) of this section, any notice to a party or any other document required under applicable law in an insurance transaction or that is to serve as evidence of insurance coverage may be delivered, stored, and presented by electronic means if it meets the requirements of the "Uniform Electronic Transactions Act", article 71.3 of title 24, C.R.S.
3. Delivery of a notice or document in accordance with this section is equivalent to any delivery method required under applicable law, including delivery by first class mail; first class mail, postage prepaid; certified mail; certificate of mail; or certificate of mailing.
4. A notice or document may be delivered by electronic means by an insurer to a party under this section if:
   1. The party has affirmatively consented to that method of delivery and has not withdrawn the consent;
   2. The party, before giving consent, is provided with a clear and conspicuous statement informing the party of:
      1. Any right or option of the party to have the notice or document provided or made available in paper or another nonelectronic form;
      2. The right of the party to withdraw consent to have a notice or document delivered by electronic means and any conditions or consequences imposed if the consent is withdrawn;
      3. Whether the party's consent applies:
         1. Only to the particular transaction as to which the notice or document must be given; or
         2. To identified categories of notices or documents that may be delivered by electronic means during the course of the party's relationship with the insurer;
      4. The means, after consent is given, by which the party may obtain a paper copy of a notice or document delivered by electronic means; and
      5. The procedure a party must follow to withdraw consent to have a notice or document delivered by electronic means and to update information needed to contact the party electronically;
   3. The party:
      1. Before giving consent, is provided with a statement of the hardware and software requirements for access to and retention of a notice or document delivered by electronic means; and
      2. Consents electronically, or confirms consent electronically, in a manner that reasonably demonstrates that the party can access information in the electronic form that will be used for notices or documents delivered by electronic means as to which the party has given consent; and
   4. If, after the party consents, a change in the hardware or software requirements needed to access or retain a notice or document delivered by electronic means creates a material risk that the party will not be able to access or retain a subsequent notice or document to which the consent applies, the insurer:
      1. Provides the party with a statement of:
         1. The revised hardware and software requirements for access to and retention of a notice or document delivered by electronic means; and
         2. The right of the party to withdraw consent without the imposition of any condition or consequence that was not disclosed under subparagraph (II) of paragraph (b) of this subsection (4); and
      2. Provides the party with a complete and updated version of the information listed in paragraph (b) of this subsection (4).
5. This section does not affect any requirement related to the content or timing of a notice or other document required under applicable law.
6. If a provision of this title or other applicable law requiring a notice or document to be provided to a party expressly requires verification or acknowledgment of receipt of the notice or document, the notice or document may be delivered by electronic means only if the method used provides for verification or acknowledgment of receipt.
7. The legal effectiveness, validity, or enforceability of any contract or policy of insurance executed by a party shall not be denied solely because of the failure to obtain electronic consent or confirmation of consent of the party in accordance with subparagraph (II) of paragraph (c) of subsection (4) of this section.
8. 1. A withdrawal of consent by a party:

      (I) Does not affect the legal effectiveness, validity, or enforceability of a notice or document delivered by electronic means to the party before the withdrawal of consent is effective; and

      (II) Is effective within a reasonable period of time after receipt of the withdrawal by the insurer.

   2. An insurer's failure to comply with paragraph (d) of subsection (4) of this section may be treated, at the election of the party, as a withdrawal of consent for purposes of this section.
9. This section does not apply to a notice or document delivered by electronic means before August 6, 2014, to a party who, before that date, had consented to receive notice or documents in an electronic form otherwise allowed by law.
10. If the consent of a party to receive certain notices or documents in an electronic form is on file with an insurer before August 6, 2014, and the insurer intends to deliver additional notices or documents to such party in an electronic form pursuant to this section, then, before delivering the additional notices or documents by electronic means, the insurer shall notify the party of:
    1. Any notices or documents that may be delivered by electronic means under this section that were not previously delivered electronically; and
    2. The party's right to withdraw consent to have notices or documents delivered by electronic means.
11. 1. Except as otherwise provided by law, if an oral communication or a recording of an oral communication from a party can be reliably stored and reproduced by an insurer, the oral communication or recording qualifies as a notice or document delivered by electronic means for purposes of this section.
    2. If a provision of this title or other applicable law requires a signature or notice or document to be notarized, acknowledged, verified, or made under oath, the requirement is satisfied if the electronic signature of the person authorized to perform those acts, together with all other information required to be included by the provision, is attached to or logically associated with the signature, notice, or document.
12. 1. This section shall not be construed to modify, limit, or supersede the provisions of the federal "Electronic Signatures in Global and National Commerce Act", Pub.L. 106-229, as amended.
    2. In the event of any conflict between this section and the "Uniform Electronic Transactions Act", article 71.3 of title 24, C.R.S., this section controls.

Source: L. 2014: Entire section added, (HB 14-1344), ch. 207, p. 762, § 1, effective August 6.

10-1-138. Internet posting of standard insurance provisions - conditions - notice of revisions.

1. Notwithstanding any provision of section 10-1-137 to the contrary, standard insurance policies and endorsements that do not contain personally identifiable information may be mailed, delivered, or posted on the insurer's website. If the insurer elects to post insurance policies and endorsements on its website in lieu of mailing or delivering them to the insured, it shall comply with all of the following conditions:
   1. The policies and endorsements must be accessible on the website and remain so for as long as the policies are in force.
   2. The policies and endorsements must be posted in a manner that enables the insured to print and save the policies and endorsements using programs or applications that are widely available on the internet and free to use.
   3. The insurer shall provide the following information in, or simultaneously with, each declarations page provided at the time of issuance of the initial policy and any renewals of that policy:
      1. A description of the exact policy and endorsement forms purchased by the insured;
      2. A method by which the insured may obtain, upon request and without charge, a paper or electronic copy of each policy and endorsement purchased by the insured; and
      3. The internet address where the insured's policies and endorsements are posted.
   4. The insurer shall archive its expired policies and endorsements for at least five years and make them available upon request.
   5. The insurer shall provide the insured with notice, in the same manner in which the insurer customarily communicates with the insured, of:
      1. Any changes to the forms or endorsements;
      2. The insured's right to obtain, upon request and without charge, a paper copy of the forms or endorsements; and
      3. The internet address where the forms or endorsements are posted.

Source: L. 2014: Entire section added, (HB 14-1344), ch. 207, p. 762, § 1, effective August 6.

10-1-139. Confidentiality.

1. Except as otherwise provided by law, when the commissioner conducts an investigation, all documents, including working papers, claim files, recorded information, electronic mail, and all copies of those documents, that are produced or obtained by or disclosed to the commissioner or any other person in the course of the investigation shall be treated as confidential until the commissioner concludes the investigation. After an investigation is concluded, the records are subject to the "Colorado Open Records Act", part 2 of article 72 of title 24.
2. This section does not apply to an examination conducted pursuant to part 2 of this article 1 or to a market conduct surveillance conducted pursuant to part 3 of this article 1.

Source: L. 2017: Entire section added, (HB 17-1231), ch. 284, p. 1552, § 1, effective January 1, 2018.

10-1-140. Subpoena authority.

The division may issue subpoenas, administer oaths, and examine under oath any person as to any matter relevant to the regulatory authority of the division. Upon the failure or refusal of a person to obey a subpoena, the division may petition a court of competent jurisdiction for an order, which order is enforceable through contempt proceedings, compelling the person to appear and testify or produce documentary evidence. The commissioner may arrange for the services of an administrative law judge appointed pursuant to part 10 of article 30 of title 24 to take evidence and to make findings and report them to the commissioner.

Source: L. 2017: Entire section added, (HB 17-1231), ch. 284, p. 1552, § 1, effective January 1, 2018.

10-1-141. Investigations - rules.

1. The commissioner may contract, pursuant to section 24-50-504 (2)(c) and (2)(e), with a person that has technical or subject matter expertise or skill and experience in investigative techniques to assist the division in performing investigations of a company or producer pursuant to this title 10 when the commissioner determines that the division lacks sufficient technical expertise to perform the investigation. Investigations conducted pursuant to this section do not include market conduct surveillance actions conducted pursuant to part 3 of this article 1. The commissioner shall, by rule, establish when contract investigators may be used for investigations. The rules must include out-of-state travel requirements, criteria for when special expertise is required for the investigation, and a requirement that there must be a significant pattern of complaints or a well-documented allegation against a company for an investigation to be warranted.
2. The investigated company or producer shall pay the reasonable fees and expenses of a person retained or designated for investigations of the company or producer pursuant to subsection (1) of this section directly to the retained or designated person, as determined by the commissioner. The investigated company or producer may contest the amount of fees and expenses charged by the retained or designated person by filing an objection with the commissioner, setting forth the charges that the investigated company or producer considers to be unreasonable and the basis for the claim that the charges are unreasonable. A disputed amount is not due unless the commissioner reviews the objection and makes a written finding that the disputed charges were reasonable in relation to the investigation performed.

Source: L. 2017: Entire section added, (HB 17-1231), ch. 284, p. 1553, § 1, effective January 1, 2018.

10-1-142. Prohibition on denial of coverage or increase in premiums of insurance for living organ donors - commissioner to enforce - short title - definitions.

1. The short title of this section is the "Living Donor Protection Act of 2019".
2. Notwithstanding any other law, a person subject to regulation by the division pursuant to this title 10 shall not:
   1. Decline or limit coverage of a person under a policy or contract for life insurance, disability income insurance, health insurance, or long-term care insurance due to the status of the person as a living organ donor;
   2. Preclude a person from donating all or part of an organ as a condition of receiving a policy or contract for life insurance, disability income insurance, health insurance, or long-term care insurance;
   3. Consider the status of a person as a living organ donor in determining the premium rate for coverage of the person under a policy or contract for life insurance, disability income insurance, health insurance, or long-term care insurance; or
   4. Otherwise discriminate in the offering, issuance, cancellation, amount of coverage, price, or any other condition of a policy or contract for life insurance, disability income insurance, health insurance, or long-term care insurance for a person based solely and without any additional actuarial risks upon the status of the person as a living organ donor.
3. The commissioner may use any of the commissioner's enforcement powers to obtain a person's compliance with this section.
4. 1. The division shall provide information to the public on the access of a living organ donor to insurance as specified in this section. If the division receives materials related to live organ donation from a recognized live organ donation organization, the division shall make the materials available to the public.
   2. If the department of public health and environment receives materials related to live organ donation from a recognized live organ donation organization, the department of public health and environment shall make the materials available to the public.
   3. The division and the department of public health and environment may seek and accept gifts, grants, or donations from private or public sources for the purposes of this subsection (4).
5. As used in this section:
   1. "Disability income insurance" means a contract under which an entity promises to pay a person a sum of money in the event that an illness or injury resulting in a disability prevents the person from working.
   2. "Health insurance" means a health benefit plan as defined in section 10-16-102 (32).
   3. "Life insurance" has the same meaning as set forth in section 10-7-301.5 (5).
   4. "Living organ donor" means a living person who has donated all or part of an organ.
   5. "Long-term care insurance" has the same meaning as set forth in section 10-19-103 (5).

Source: L. 2019: Entire section added, (HB 19-1253), ch. 367, p. 3368, § 1, effective August 2.

10-1-201. Legislative declaration.

The general assembly finds, determines, and declares that it is necessary to establish an effective and efficient system for examining the activities, operations, financial conditions, and affairs of all persons transacting the business of insurance in this state and all persons otherwise subject to the jurisdiction of the commissioner. The provisions of this part 2 are intended to enable the commissioner to adopt a flexible system of examinations that directs resources as may be deemed appropriate and necessary for the administration of the insurance and insurance-related laws of this state.

Source: L. 2003: Entire article RC&RE, p. 605, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-201 as it existed prior to 2002.

10-1-202. Definitions.

As used in this part 2, unless the context otherwise requires:

1. "Company" means any person or group of persons engaging in or proposing or attempting to engage in any transaction or kind of insurance or surety business and any person or group of persons who may otherwise be subject to any administrative, regulatory, or taxing authority of the commissioner as well as any advisory organization or rating organization as defined in section 10-4-402.
2. "Examination" means a formal financial examination, as well as informal examinations, conducted by the commissioner for the purpose of determining compliance with the law.
3. "Examiner" means any individual or firm authorized by the commissioner to conduct an examination under this part 2.
4. "Informal examination" means all inquiries by the division into the financial condition of a company, other than the formal financial examination of a company that must be conducted once every five years pursuant to section 10-1-203 (1).
5. "Insurance department" means the commissioner or other government official or agency of a state other than Colorado exercising powers and duties substantially equivalent to those of the commissioner or the division.
6. "Insurer" means any person, firm, corporation, association, or aggregation of persons doing an insurance business and subject to the insurance supervisory authority of, or to liquidation, rehabilitation, reorganization, or conservation by, the commissioner or any equivalent insurance supervisory official of another state.
7. "NAIC" or "national association of insurance commissioners" means the organization of insurance regulators from the fifty states, the District of Columbia, and the four United States territories.
8. "Person" means any individual, aggregation of individuals, trust, association, partnership, or corporation, or any agent or affiliate thereof.

Source: L. 2003: Entire article RC&RE, p. 605, § 1, effective July 1. L. 2006: (1.5), (1.7), and (8) to (19) added and (7) amended, p. 960, § 3, effective January 1, 2007. L. 2017: Entire section amended, (HB 17-1231), ch. 284, p. 1553, § 2, effective January 1, 2018.

Editor's note: This section is similar to former § 10-1-202 as it existed prior to 2002.

Cross references: For the legislative declaration contained in the 2006 act enacting subsections (1.5), (1.7), and (8) to (19) and amending subsection (7), see section 1 of chapter 211, Session Laws of Colorado 2006.

10-1-203. Authority, scope, and scheduling of examinations.

1. The commissioner or the commissioner's designee may conduct an examination of any company as often as the commissioner, in the commissioner's sole discretion, deems appropriate but shall, at a minimum, conduct a formal financial examination of every insurer licensed in this state not less frequently than once every five years; except that this does not include eligible nonadmitted insurers regulated in accordance with article 5 of this title 10. In scheduling financial examinations and in determining their nature, scope, and frequency, the commissioner shall consider matters such as the results of financial statement analyses and ratios, changes in management or ownership, actuarial opinions, reports of independent certified public accountants, and other criteria as set forth in the most recent available edition of the examiners' handbook adopted by the national association of insurance commissioners.
2. For purposes of completing an examination of any company under this part 2, the commissioner may examine or investigate any person or the business of any person insofar as such examination or investigation is, in the sole discretion of the commissioner, necessary or material to the examination of the company.
3. In lieu of a financial examination under this part 2 of any foreign or alien insurer licensed in this state, the commissioner may accept an examination report on the company as prepared by the insurance department for the company's state of domicile or port-of-entry state; except that such reports may only be accepted if:
   1. The insurance department was, at the time of the examination, accredited under the national association of insurance commissioners' financial regulation standards and accreditation program; or
   2. The examination is performed under the supervision of an accredited insurance department or with the participation of one or more examiners who are employed by such an accredited state insurance department and who, after a review of the examination work papers and report, state under oath that the examination was performed in a manner consistent with the standards and procedures required by the examiners' insurance department.

Source: L. 2003: Entire article RC&RE, p. 606, § 1, effective July 1. L. 2012: (1) amended, (HB 12-1215), ch. 104, p. 354, § 7, effective August 8. L. 2017: (1) amended, (HB 17-1231), ch. 284, p. 1555, § 3, effective January 1, 2018.

Editor's note: This section is similar to former § 10-1-203 as it existed prior to 2002.

10-1-204. Conduct of examinations - conferences.

1. 1. In conducting the examination, the examiners shall observe those guidelines and procedures set forth in the examiners' handbook adopted by the national association of insurance commissioners and the Colorado insurance examiners handbook. The commissioner may also employ other guidelines or procedures as the commissioner deems appropriate.
   2. Repealed.
2. 1. Every company or person from whom information is sought and all officers, directors, and agents of the company or person shall provide to the examiners timely, convenient, and free access at reasonable hours at its offices to all books, records, accounts, papers, tapes, computer records, and other documents relating to the property, assets, business, and affairs of the company being examined. The company or person shall make the books, records, and documents available for examination or inspection at the office location of the division when the commissioner determines that it is reasonably cost-effective to do so. The officers, directors, employees, and agents of the company or person shall facilitate the examination and aid in the examination to the extent it is in their power to do so.
   2. 1. The refusal of any company or any of its officers, directors, employees, or agents to submit to examination or to comply with any reasonable written request of the examiners shall be grounds for suspension, revocation, denial, or nonrenewal of any license or authority held by the company and subject to the commissioner's jurisdiction.
      2. Proceedings for any suspension or revocation pursuant to this subsection (2) shall be conducted in accordance with section 10-1-110.
3. Repealed.
4. [ Editor's note: This version of subsection (4) is effective until March 1, 2022.] Any person who knowingly or willfully testifies falsely in reference to any matter material to an examination or inquiry is guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not more than five thousand dollars, by imprisonment in the county jail for not more than three months, or by both such fine and imprisonment.

   (4) [ Editor's note: This version of subsection (4) is effective March 1, 2022. ] Any person who knowingly or willfully testifies falsely in reference to any matter material to an examination or inquiry commits a class 2 misdemeanor.

5. [ Editor's note: This version of subsection (5) is effective until March 1, 2022.] Any person who knowingly or willfully makes any false certificate, entry, or memorandum upon any of the books or papers of a company or upon any statement filed or offered to be filed in the division or used in the course of any examination or inquiry, with the intent to deceive the commissioner or any person appointed by the commissioner to conduct or make the examination or inquiry, is guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not more than five thousand dollars, by imprisonment in the county jail for not less than two months nor more than twelve months, or by both such fine and imprisonment.

   (5) [ Editor's note: This version of subsection (5) is effective March 1, 2022. ] Any person who knowingly or willfully makes any false certificate, entry, or memorandum upon any of the books or papers of a company or upon any statement filed or offered to be filed in the division or used in the course of any examination or inquiry, with the intent to deceive the commissioner or any person appointed by the commissioner to conduct or make the examination or inquiry, commits a class 2 misdemeanor.

6. 1. In addition to any other powers granted to the commissioner in this section or in any other provision of law, the commissioner may require any company, entity, or new applicant to be examined by independent examiners certified by the society of financial examiners or the insurance regulatory examiners society, actuaries who are members of the American academy of actuaries, or by any other qualified and competent loss reserve specialists, independent risk managers, independent certified public accountants, auditors, other examiners of insurance companies, or combination of such persons. Any domestic company may make a request to the commissioner to be so examined.
   2. 1. The commissioner may accept, as part of an examination, reports made by any person qualified and competent to conduct the examination as set forth in this subsection (6); except that neither the person, nor any member of the person's immediate family, may be:
         1. An officer of, connected with, or financially interested in the company, entity, or applicant being examined, other than as a policyholder; or
         2. Financially interested in any other corporation or person affected by the examination or by any related investigation or hearing.
      2. A person that conducts an examination pursuant to this subsection (6) shall keep strictly confidential all information, regardless of its source, obtained through any examination or about any examinee and shall disclose the information only to the commissioner or the examinee upon the specific request of either. The commissioner shall establish guidelines for assuring the neutrality of those persons to be authorized to supplement the examination procedures authorized in this section.
      3. The examinee shall pay the reasonable expenses and charges of a person retained or designated pursuant to this subsection (6) directly to the person. The examinee may contest the amount of fees, costs, and expenses charged by the person by filing an objection with the commissioner, setting forth the charges that the examinee considers to be unreasonable and the basis for the claim that the charges are unreasonable. A disputed amount is not due to the examiner unless the commissioner reviews the objection and makes a written finding that the disputed charges were reasonable in relation to the examination performed.
7. Nothing contained in this part 2 shall be construed to limit the commissioner's authority to terminate or suspend any examination in order to pursue other legal or regulatory action pursuant to the insurance laws of this state. Findings of fact and conclusions made pursuant to any examination shall be prima facie evidence in any legal or regulatory action.
8. Nothing contained in this part 2 shall be construed to limit the commissioner's authority to use and, if appropriate, to make public, if consistent with section 10-3-414, any final or preliminary examination report, any examiner or company work papers or other documents, or any other information discovered or developed during the course of any examination in the furtherance of any legal or regulatory action that the commissioner may, in the commissioner's sole discretion, deem appropriate.
9. 1. For examinations of foreign companies made outside the borders of this state and of executive or branch offices of domestic companies located outside the borders of this state, the examined company shall pay the costs of the examination, including the expenses of the commissioner and the commissioner's assistants, who must be paid the same compensation as other examiners on such examinations.
   3. Repealed.
   4. When insurance companies not authorized to do business in this state, companies adjudged insolvent, or companies for any cause withdrawing from this state neglect, fail, or refuse to pay the reasonable charges for examination as approved by the commissioner, such charges shall be paid by the state treasurer from the general fund upon the order of the commissioner, and the amount so paid shall be a first lien upon all assets and property of such company and may be recovered by suit by the attorney general on behalf of the state of Colorado and restored to the general fund.
10. and (11) Repealed.

Source: L. 2003: Entire article RC&RE, p. 607, § 1, effective July 1. L. 2014: (11) added, (SB 14-210), ch. 267, p. 1068, § 1, effective August 6. L. 2017: (1)(a), (2)(a), (4), (5), (6)(b), and (9)(a) amended and (1)(b), (3), (9)(b), (9)(c), (10), and (11) repealed, (HB 17-1231), ch. 284, p. 1556, § 4, effective January 1, 2018. L. 2021: (4) and (5) amended, (SB 21-271), ch. 462, p. 3146, § 108, effective March 1, 2022.

10-1-205. Financial examination reports.

1. Examination reports must comprise only facts appearing upon the books, records, or other documents of the company, its agents, or other persons examined, or as ascertained from the testimony of its officers or agents or other persons examined concerning its affairs, and the conclusions and recommendations as the examiners find reasonably warranted based upon the facts.
2. No later than sixty days after completion of the examination, the examiner in charge shall file with the division a verified written report of examination under oath. Upon receipt of the verified report, the division shall transmit to the company examined both the report and a notice stating that the company examined shall be afforded a reasonable period not exceeding thirty days, within which to make a written submission or rebuttal with respect to any matters contained in the examination report.
3. Within thirty days after the end of the period allowed for the receipt of written submissions or rebuttals, the commissioner shall fully consider and review the report, any written submissions or rebuttals, and any relevant portions of the examiner's work papers and shall enter an order that does one or more of the following:
   1. Adopts the examination report as filed or with specified modifications or corrections; and if the examination report reveals that the company is operating in violation of any law, rule, or prior lawful order of the commissioner, the commissioner may order the company to take any action the commissioner considers necessary and appropriate to cure such violation; or
   2. Rejects the examination report and directs the examiners to reopen the examination for purposes of obtaining additional data, documentation, or information and to refile the report pursuant to subsection (1) of this section; or
   3. Calls for an investigatory hearing, upon no less than twenty days' notice to the company, for purposes of obtaining additional documentation, data, information, and testimony; or
   4. May impose a monetary penalty of not more than three thousand dollars for every act in violation of any law, rule, or prior lawful order of the commissioner described in the report of examination, but not to exceed an aggregate penalty of thirty thousand dollars unless the company knew or reasonably should have known that its conduct was in violation of any law, rule, or prior lawful order of the commissioner, in which case the penalty shall not be more than thirty thousand dollars for every act or violation, but not to exceed an aggregate penalty of seven hundred fifty thousand dollars annually.
4. 1. All orders entered pursuant to subsection (3)(a) of this section must be accompanied by findings and conclusions resulting from the commissioner's consideration and review of the examination report, relevant examiner work papers, and any written submissions or rebuttals. The order is a final agency decision and must be served upon the company by certified mail together with a copy of the adopted examination report. Notwithstanding the requirements of section 10-1-127, the final agency decision is subject to judicial review by the district court pursuant to section 24-4-106.Within thirty days after issuance of the adopted report, the company shall file affidavits executed by each of its directors stating under oath that the directors have received a copy of the adopted report and related orders.
   2. Any hearing conducted under paragraph (c) of subsection (3) of this section by the commissioner or an authorized representative shall be conducted as a nonadversarial, confidential, investigatory proceeding as necessary for the resolution of any inconsistencies, discrepancies, or disputed issues apparent upon the face of the filed examination report or raised by or as a result of the commissioner's review of relevant work papers or by the written submission or rebuttal of the company. Such hearing shall not be subject to the "State Administrative Procedure Act", article 4 of title 24, C.R.S. Within twenty days after the conclusion of any such hearing, the commissioner shall enter an order pursuant to paragraph (a) of subsection (3) of this section.
   3. The commissioner shall not appoint an examiner as an authorized representative to conduct the hearing. The hearing shall proceed expeditiously with discovery by the company limited to the examiner's work papers that tend to substantiate any assertions set forth in any written submission or rebuttal. The commissioner or representative may issue subpoenas for the attendance of any witnesses or the production of any documents deemed relevant to the investigation, whether under the control of the division, the company, or other persons. The documents produced shall be included in the record. Testimony taken by the commissioner or representative shall be under oath and preserved for the record.
   4. The hearing shall proceed with the commissioner or representative posing questions to the persons subpoenaed. Thereafter, the company and the division may present testimony relevant to the investigation. The company and the division shall be permitted to make closing statements and may be represented by counsel of their choice.
   5. Any order issued by the commissioner pursuant to subsection (3)(d) of this section may be appealed to the district court.
5. Upon the adoption of the examination report pursuant to paragraph (a) of subsection (3) of this section, the commissioner shall continue, for at least thirty days, to hold the content of the examination report as private and confidential information except to the extent provided in subsection (2) of this section. Thereafter, the commissioner may open the report for public inspection unless a court of competent jurisdiction has stayed its publication.
6. No provision of this title shall prevent or be construed as prohibiting the commissioner from disclosing the content of an examination report, preliminary examination report or results, or any matter relating thereto to the insurance division of this or any other state or country, or to law enforcement officials of this or any other state, or to any agency of the federal government at any time subject to the written agreement of the recipient to hold such information confidential and to treat it in a manner consistent with this part 2.
7. In the event the commissioner determines that regulatory action is appropriate as a result of any examination, the commissioner may initiate any proceedings or actions as provided by law.
8. Confidentiality of ancillary information.
   1. All working papers, recorded information, documents, and copies thereof that are produced or obtained by or disclosed to the commissioner or any other person in the course of an examination made under this part 2 or in the course of analysis of the financial condition of the company by the commissioner are confidential, are not subject to subpoena, and may not be made public by the commissioner or any other person except to the extent provided in subsection (5) of this section; except that the commissioner may grant the NAIC access to the materials. Disclosure of the materials may be made only upon the prior written agreement of the recipient to hold the information confidential as required by this section or upon the prior written consent of the company to which it pertains.
   2. Neither the commissioner nor any person who received the documents, materials, or other information while acting under the authority of the commissioner, including the NAIC and its affiliates and subsidiaries, may testify in any private civil action concerning any confidential documents, materials, or information subject to subsection (8)(a) of this section.

Source: L. 2003: Entire article RC&RE, p. 610, § 1, effective July 1. L. 2004: IP(3) amended, p. 1058, § 2, effective July 1. L. 2008: (3)(d) amended, p. 2171, § 1, effective August 5. L. 2017: (1), (4)(a), (4)(e), and (8) amended, (HB 17-1231), ch. 284, p. 1558, § 5, effective January 1, 2018.

Editor's note: This section is similar to former § 10-1-205 as it existed prior to 2002.

10-1-206. Conflict of interest.

1. No examiner may be appointed by the commissioner if such examiner, either directly or indirectly, has a conflict of interest or is affiliated with the management of or owns a pecuniary interest in any person subject to examination under this part 2; except that this section shall not be construed to automatically preclude an examiner from being:
   1. A policyholder or claimant under an insurance policy;
   2. A grantor of a mortgage or similar instrument on the examiner's residence to a regulated entity if done under customary terms and in the ordinary course of business;
   3. An investment owner in shares of regulated diversified investment companies; or
   4. A settlor or beneficiary of a "blind trust" into which any otherwise impermissible holdings have been placed.
2. Notwithstanding any provision of this section to the contrary, the commissioner may retain from time to time, on an individual basis, qualified actuaries, certified public accountants, or other similar individuals who are independently practicing their professions even though such persons may from time to time be similarly employed or retained by persons subject to examination under this part 2.

Source: L. 2003: Entire article RC&RE, p. 612, § 1, effective July 1.

Editor's note: This section is similar to former § 10-1-206 as it existed prior to 2002.

10-1-207. Immunity from liability - prohibited activity.

1. No cause of action shall arise, nor shall any liability be imposed, against the commissioner, the commissioner's authorized representatives, or any examiner appointed by the commissioner for any statements made or conduct performed in good faith while carrying out the provisions of this part 2.
2. No cause of action shall arise, nor shall any liability be imposed, against any person for the act of communicating or delivering information or data to the commissioner or the commissioner's authorized representative or examiner pursuant to an examination made under this part 2, if such act of communication or delivery was performed in good faith and without fraudulent intent or the intent to deceive.
3. This section does not abrogate or modify in any way any common-law or statutory privilege or immunity heretofore enjoyed by any person identified in subsection (1) of this section.
4. A person identified in subsection (1) of this section shall be entitled to an award of attorney fees and costs if such person is the prevailing party in a civil action for libel, slander, or any other relevant tort arising out of activities in carrying out the provisions of this part 2 and the party bringing the action was not substantially justified in doing so. For purposes of this section, a proceeding is "substantially justified" if it had a reasonable basis in law or fact at the time that it was initiated.
5. An insurer shall not take any retaliatory personnel action against an employee because the employee provides information to or testifies before the commissioner conducting an examination into the practices of the company.
6. 1. An employee who has been the subject of a retaliatory personnel action in violation of subsection (5) of this section may institute a civil action in a court of competent jurisdiction for relief within one year after the date of the alleged retaliatory action.
   2. A court of competent jurisdiction may order relief as follows:
      1. Reinstatement of the employee to the same position held before the retaliatory personnel action or an equivalent position;
      2. Reinstatement of full benefits and seniority rights; and
      3. Compensation for lost wages and benefits.
   3. Upon a determination that an insurer has taken a retaliatory personnel action, the court may award costs of the action together with reasonable attorney fees.

Source: L. 2003: Entire article RC&RE, p. 613, § 1, effective July 1. L. 2006: (5) and (6) added, p. 971, § 5, effective January 1, 2007. L. 2017: (5) amended, (HB 17-1231), ch. 284, p. 1560, § 6, effective January 1, 2018.

Editor's note: This section is similar to former § 10-1-207 as it existed prior to 2002.

Cross references: For the legislative declaration contained in the 2006 act enacting subsections (5) and (6), see section 1 of chapter 211, Session Laws of Colorado 2006.

10-1-208. Informal investigations. (Repealed)

Source: L. 2004: Entire section added, p. 72, § 1, effective March 8. L. 2017: Entire section repealed, (HB 17-1231), ch. 284, p. 1560, § 7, effective January 1, 2018.

10-1-209. Short title. (Repealed)

Source: L. 2006: Entire section added, p. 962, § 4, effective January 1, 2007. L. 2017: Entire section repealed, (HB 17-1231), ch. 284, p. 1560, § 7, effective January 1, 2018.

10-1-210. Market analysis procedures. (Repealed)

Source: L. 2006: Entire section added, p. 962, § 4, effective January 1, 2007. L. 2017: Entire section repealed, (HB 17-1231), ch. 284, p. 1560, § 7, effective January 1, 2018.

10-1-211. Protocols for market conduct actions. (Repealed)

Source: L. 2006: Entire section added, p. 964, § 4, effective January 1, 2007. L. 2012: (6) added, (HB 12-1266), ch. 280, p. 1494, § 7, effective July 1. L. 2013: (6) amended, (HB 13-1236), ch. 202, p. 840, § 5, effective May 11. L. 2017: Entire section repealed, (HB 17-1231), ch. 284, p. 1560, § 7, effective January 1, 2018.

10-1-212. Targeted, on-site market conduct examinations - rules. (Repealed)

Source: L. 2006: Entire section added, p. 965, § 4, effective January 1, 2007. L. 2017: Entire section repealed, (HB 17-1231), ch. 284, p. 1560, § 7, effective January 1, 2018.

10-1-213. Confidentiality requirements. (Repealed)

Source: L. 2006: Entire section added, p. 968, § 4, effective January 1, 2007. L. 2010: (5) added, (HB 10-1220), ch. 197, p. 852, § 8, effective July 1. L. 2017: Entire section repealed, (HB 17-1231), ch. 284, p. 1560, § 7, effective January 1, 2018.

10-1-214. Market conduct surveillance personnel. (Repealed)

Source: L. 2006: Entire section added, p. 970, § 4, effective January 1, 2007. L. 2017: Entire section repealed, (HB 17-1231), ch. 284, p. 1560, § 7, effective January 1, 2018.

10-1-215. Fines and penalties. (Repealed)

Source: L. 2006: Entire section added, p. 970, § 4, effective January 1, 2007. L. 2017: Entire section repealed, (HB 17-1231), ch. 284, p. 1560, § 7, effective January 1, 2018.

10-1-216. Participation in national market conduct databases. (Repealed)

Source: L. 2006: Entire section added, p. 970, § 4, effective January 1, 2007. L. 2017: Entire section repealed, (HB 17-1231), ch. 284, p. 1560, § 7, effective January 1, 2018.

10-1-217. Coordination with other states through NAIC.

The commissioner shall share information and coordinate the division's examination efforts with other states through the NAIC.

Source: L. 2006: Entire section added, p. 971, § 4, effective January 1, 2007. L. 2017: Entire section amended, (HB 17-1231), ch. 284, p. 1560, § 8, effective January 1, 2018.

Cross references: For the legislative declaration contained in the 2006 act enacting this section, see section 1 of chapter 211, Session Laws of Colorado 2006.

10-1-218. Additional duties of commissioner.

1. Repealed.
2. 1. The commissioner shall designate a specific person or persons within the division whose responsibilities shall include the receipt of information from employees of insurers and licensed entities concerning violations of laws or rules by insurers. The designated person or persons shall be provided with proper training on the handling of the information, including procedures to maintain the confidentiality of the communication for purposes of this section.
   2. The information received pursuant to this subsection (2) is a confidential communication and is not public information.

Source: L. 2006: Entire section added, p. 971, § 4, effective January 1, 2007. L. 2017: (1) repealed, (HB 17-1231), ch. 284, p. 1560, § 9, effective January 1, 2018.

Cross references: For the legislative declaration contained in the 2006 act enacting this section, see section 1 of chapter 211, Session Laws of Colorado 2006.

10-1-301. Legislative declaration.

The general assembly finds, determines, and declares that it is necessary to establish an effective and efficient system for reviewing, evaluating, and analyzing the activities, operations, and affairs of all persons transacting the business of insurance in this state and all persons otherwise subject to the jurisdiction of the commissioner. This part 3 is intended to enable the commissioner to adopt a flexible system of review, evaluation, and analysis that directs resources as may be deemed appropriate and necessary for the administration of the insurance and insurance-related laws of this state.

Source: L. 2017: Entire part added, (HB 17-1231), ch. 284, p. 1560, § 10, effective January 1, 2018.

10-1-302. Definitions.

As used in this part 3, unless the context otherwise requires:

1. "Commissioner" means the commissioner of insurance, the commissioner's deputies, or the division of insurance.
2. "Company" means any person or group of persons engaging in or proposing or attempting to engage in any transaction or kind of insurance or surety business or any person or group of persons who may otherwise be subject to any administrative, regulatory, or taxing authority of the commissioner, as well as any advisory organization or rating organization as defined in section 10-4-402.
3. "Complaint" means any written communication, or oral communication that is subsequently converted to a written form, that expresses a grievance or dissatisfaction with a specific person or entity subject to regulation by the division.
4. "Division" means the division of insurance, the commissioner of insurance, or a government official or agency of a state other than Colorado exercising powers and duties substantially equivalent to those of the commissioner or the division.
5. "Market analysis" means a process whereby market conduct surveillance personnel collect and analyze information from filed schedules, surveys, required reports, and other sources in order to develop a baseline understanding of the marketplace and to identify patterns or practices of companies that deviate from the norm or that may pose risk to the insurance consumer.
6. "Market conduct examination" includes any type of examination as set forth in the Market Regulation Handbook that assesses a company's compliance with the laws, rules, and regulations applicable to the company. Market conduct examinations include desk examinations, on-site examinations, follow up examinations, and targeted examinations.
7. "Market conduct surveillance" means any of the full range of activities that the commissioner may initiate to assess and address the market practices of any company licensed or registered pursuant to this title 10 to conduct business in this state, including market analysis, interrogatories, and market conduct examinations.
8. "Market conduct surveillance personnel" means those individuals employed by or under contract with the commissioner to collect, analyze, review, or act on information about the insurance marketplace that identifies patterns or practices of companies.
9. "Market Regulation Handbook" means the guidelines developed and issued by the NAIC that are designed to be used to conduct uniform, standardized market conduct surveillance.
10. "NAIC" or "national association of insurance commissioners" means the organization of insurance regulators from the fifty states, the District of Columbia, and the four United States territories.
11. "Person" means any individual, aggregation of individuals, trust, association, partnership, or corporation, or any agent or affiliate thereof.
12. "Standard data request" means the set of field names and descriptions developed and adopted by the NAIC for use by market conduct surveillance personnel in an examination.
13. "Third-party model or product" means a model or product provided by an entity separate from and not under direct or indirect corporate control of the company using the model or product.

Source: L. 2017: Entire part added, (HB 17-1231), ch. 284, p. 1561, § 10, effective January 1, 2018.

10-1-303. Market analysis - market conduct surveillance.

1. The commissioner may perform market analysis by gathering and analyzing information from data currently available to the commissioner, information from surveys, data calls, or reports that are submitted regularly to the commissioner, information collected by the NAIC, and information from a variety of other sources in both the public and private sectors in order to develop a baseline understanding of the marketplace and to identify for further review companies or practices that deviate from the norm or that may pose a potential risk to the insurance consumer. The commissioner shall use the Market Regulation Handbook as a guide in performing the market analysis.
2. 1. If the commissioner determines that further inquiry into a particular company or practice is needed, the commissioner may consider the continuum of other types of market conduct surveillance as specified in this subsection (2)(a). The commissioner shall inform the company in writing of the type of market conduct surveillance selected if it involves company participation or response. The types of market conduct surveillance include:
      1. Correspondence with the company;
      2. Company interviews;
      3. Information gathering;
      4. Policy and procedure reviews;
      5. Interrogatories;
      6. Review of company self-evaluations and voluntary compliance programs;
      7. Self-audits; and
      8. Market conduct examinations.
   2. 1. The commissioner shall take steps reasonably necessary to eliminate requests for information that duplicate information provided as part of a company's financial statement, the NAIC's market conduct annual statement, or other required surveys, data calls, or reports that are submitted regularly to the commissioner.
      2. The commissioner may coordinate the market conduct surveillance and findings of this state with market conduct surveillance and findings of other states.
3. Nothing in this section requires the commissioner to conduct market analysis prior to initiating any other type of market conduct surveillance.

Source: L. 2017: Entire part added, (HB 17-1231), ch. 284, p. 1562, § 10, effective January 1, 2018.

10-1-304. Authority and scope of market conduct surveillance - rules.

1. The commissioner may conduct market conduct surveillance of any company as often as the commissioner, in the commissioner's sole discretion, deems appropriate. When initiating market conduct surveillance and in determining its nature, scope, and frequency, the commissioner may consider any market analysis performed pursuant to section 10-1-303 and any other criteria as set forth in the most recent available edition of the Market Regulation Handbook.
2. For purposes of completing market conduct surveillance of any company under this part 3, the commissioner may review, evaluate, or analyze any person or the business of any person to the extent the action is, in the sole discretion of the commissioner, necessary or material to the market conduct surveillance.
3. In conducting market conduct surveillance, market conduct surveillance personnel shall consider those guidelines and procedures set forth in the most recent available edition of the Market Regulation Handbook. The commissioner may also employ other standard insurance industry guidelines or procedures the commissioner deems appropriate.
4. [ Editor's note: This version of subsection (4) is effective until March 1, 2022.] Any person who knowingly or willfully testifies falsely in reference to any matter material to any market conduct surveillance, or who knowingly or willfully makes any false certificate, entry, or memorandum upon any of the books or papers of a company or upon any statement filed or offered to be filed with the commissioner or used in the course of any market conduct surveillance or inquiry is guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not more than five thousand dollars, or by imprisonment in the county jail for not more than three months, or by both such fine and imprisonment.

   (4) [ Editor's note: This version of subsection (4) is effective March 1, 2022. ] Any person who knowingly or willfully testifies falsely in reference to any matter material to any market conduct surveillance, or who knowingly or willfully makes any false certificate, entry, or memorandum upon any of the books or papers of a company or upon any statement filed or offered to be filed with the commissioner or used in the course of any market conduct surveillance or inquiry commits a class 2 misdemeanor.

5. 1. Every company or person from whom information is sought and all officers, directors, and agents of the company or person shall provide to the market conduct surveillance personnel timely, convenient, and free access to all books, records, accounts, papers, tapes, computer records, and other documents relating to the property, assets, business, and affairs of the company. The officers, directors, employees, and agents of the company or person shall facilitate the market conduct surveillance and aid in the review, evaluation, or analysis to the extent it is in their power to do so.
   2. 1. The refusal of any company or any of its officers, directors, employees, or agents to submit to any type of market conduct surveillance or to comply with any reasonable written request of market conduct surveillance personnel is grounds for suspension, revocation, denial, or nonrenewal of any license or authority held by the company and subject to the commissioner's jurisdiction.
      2. Proceedings for any suspension or revocation pursuant to this subsection (5)(b) must be conducted in accordance with section 10-1-110.
6. 1. The company subject to market conduct surveillance shall pay the reasonable fees and expenses of the market conduct surveillance.
   2. 1. The commissioner or the commissioner's assistants shall conduct market conduct surveillance of a domestic company unless the commissioner determines that good cause exists to have the market conduct surveillance conducted by contract market conduct surveillance personnel.
      2. The commissioner shall adopt rules for determining when contract market conduct surveillance personnel may be used and the reasonable fees and expenses that the company subject to the market conduct surveillance shall pay. The rules must include factors such as travel requirements, workload needs, special expertise required for the market conduct surveillance, and market issues requiring any unanticipated market conduct surveillance.
   3. When an insurance company not authorized to do business in this state, a company adjudged insolvent, or a company withdrawing from this state for any cause neglects, fails, or refuses to pay the reasonable fees and expenses for market conduct surveillance as approved by the commissioner:
      1. The state treasurer shall pay the fees and expenses from the general fund upon the order of the commissioner; and
      2. The amount paid is a first lien upon all assets and property of the company and may be recovered by suit filed by the attorney general on behalf of the state of Colorado and credited to the general fund.
7. Nothing in this part 3 limits the commissioner's authority to terminate or suspend any market conduct surveillance in order to pursue other legal or regulatory action pursuant to the insurance laws of this state.
8. 1. Where the reasonable and necessary cost of any type of market conduct surveillance is to be assessed against the company subject to the market conduct surveillance, the fee must be consistent with the Market Regulation Handbook. The fees and expenses must be itemized and must include receipts for all applicable expenses, and invoices shall be provided to the division on at least a monthly basis for review prior to submission to the company for payment. The company subject to the market conduct surveillance shall pay fees and expenses at least monthly.
   2. The commissioner shall maintain active management and oversight of costs, including costs associated with the commissioner's own market conduct surveillance personnel and with retaining qualified contract market conduct surveillance personnel. To the extent the commissioner retains outside assistance, the commissioner shall have written protocols that:
      1. Establish and utilize a dispute resolution or arbitration mechanism to resolve conflicts with companies regarding fees and expenses; and
      2. Require disclosure of the terms of the contracts with the outside consultants that will be used, including the fees and hourly rates that may be charged.
   3. A company cannot be required to reimburse any portion of fees under this subsection (8) incurred by market conduct surveillance personnel that exceeds the fees prescribed in the Market Regulation Handbook and any successor documents to that handbook, unless the commissioner demonstrates that the fees prescribed in the Market Regulation Handbook are inadequate under the circumstances of the type of market conduct surveillance conducted.
   4. A company may request an independent audit of the fees and expenses charged within twelve months after the completion of any type of market conduct surveillance. The company is responsible for the cost of the independent audit. Market conduct surveillance personnel shall maintain documentation supporting the fees and expenses charged to the company for at least twelve months after the completion of the market conduct surveillance.

Source: L. 2017: Entire part added, (HB 17-1231), ch. 284, p. 1563, § 10, effective January 1, 2018. L. 2021: (4) amended, (SB 21-271), ch. 462, p. 3146, § 109, effective March 1, 2022.

Editor's note: Section 803(2) of chapter 462 (SB 21-271), Session Laws of Colorado 2021, provides that the act changing this section applies to offenses committed on or after March 1, 2022.

10-1-305. Market conduct examinations.

1. The commissioner may conduct a market conduct examination of any company as often as the commissioner, in the commissioner's sole discretion, deems appropriate; except that the commissioner shall rely upon the state of domicile to conduct market conduct examinations of those eligible nonadmitted insurers regulated in accordance with article 5 of this title 10.
2. To the extent practicable, the commissioner shall coordinate a market conduct examination of a foreign company authorized under this title 10 to do business in this state with the insurance commissioner of the company's state of domicile.
3. 1. Except when extraordinary circumstances indicating a risk to consumers requires immediate action, at least sixty days before starting a market conduct examination, the division shall notify the company that a market conduct examination will be performed.
   2. The division shall use the standard data request or a successor or modified product that is substantially similar to the standard data request.
   3. At the same time the notice is sent to the company, the division shall provide notice on the NAIC's examination tracking system or successor NAIC product that a market conduct examination has been scheduled.
4. 1. Except when extraordinary circumstances indicating a risk to consumers requires immediate action, at least thirty days before starting the market conduct examination, the division shall offer, in writing, to conduct a preexamination conference with the company's examination coordinator and key personnel to discuss:
      1. Early resolution and simplification of procedures;
      2. Avoidance of the production of unnecessary or duplicative information; and
      3. Facilitation of complete, accurate, just, speedy, and inexpensive disposition of the examination.
   2. Except when extraordinary circumstances indicating a risk to consumers requires immediate action, at least thirty days before starting the market conduct examination, the division shall prepare and provide to the company subject to the examination a work plan consisting of the following:
      1. The name and address of the company being examined;
      2. The name and contact information of the market conduct surveillance personnel who will be conducting the examination;
      3. The type of market conduct examination being conducted;
      4. The scope of the examination;
      5. The date the examination is scheduled to begin;
      6. A time estimate for the duration of the examination; and
      7. An estimated cost for the examination.
   3. If a market conduct examination is expanded beyond the scope provided to the company in the work plan, the division shall:
      1. Provide written notice to the company explaining the extent of and reasons for the expansion; and
      2. Provide the company with a revised work plan as soon as practicable.
5. Before concluding a market conduct examination, the division shall offer, in writing, to hold a predraft conference with the company subject to the examination at least thirty days before filing a draft report. If the company chooses to have a predraft conference, the division shall design and conduct the predraft conference in accordance with the examination report provisions of the Market Regulation Handbook to facilitate:
   1. Resolution of outstanding issues;
   2. Discussion of possible corrective actions;
   3. Review of the examination report before it is filed in draft form; and
   4. Complete, accurate, just, speedy, and inexpensive conclusion of the examination.
6. 1. The division shall adhere to the following procedure or timeline, unless a mutual agreement is reached with the company to modify the procedure or timeline:
      1. The division shall deliver the draft report to the company within sixty days after completion of the market conduct examination, which is the date when the division confirms in writing that the examination is completed.
      2. The company may respond with written submissions or rebuttals challenging any issue contained in the draft report within thirty days after the date of the draft report. Any issue in the draft report that is not challenged by the company is deemed accepted by the company. The company's written submissions and rebuttals must be included in the market conduct surveillance personnel's work papers.
      3. Unless a mutual agreement is reached to extend the deadline, within thirty days after the period allowed for the company's written submissions or rebuttals ends, the division shall provide to the company a final report. The division shall not include any issues in the final report that were not included in the draft report without providing the company an opportunity to supplement its submissions and rebuttals in order to respond to any new issue. The company must file any supplement to its submissions and rebuttals within fourteen days after the division issues the final report.
      4. Within thirty days after issuance of the final report, the company must accept the findings of the final report or request a written hearing.
   2. If the company accepts the findings of the final report, the following procedures apply:
      1. The commissioner shall issue an order adopting the final report as written or with specified modifications or corrections within thirty days after the company accepts the report.
      2. 1. The commissioner shall include with an order issued pursuant to subsection (6)(b)(I) of this section findings and conclusions resulting from the commissioner's consideration and review of the final report, relevant market conduct surveillance personnel work papers, and any written submissions or rebuttals.
         2. An order issued pursuant to subsection (6)(b)(I) of this section is a final agency action and shall be served upon the company by certified mail together with a copy of the adopted final report. Within sixty days after issuance of the adopted final report, the company shall file affidavits executed by each of its directors stating under oath that the directors have received a copy of the final report and related orders.
      3. Notwithstanding the requirements of section 10-1-127, if the final agency order modifies or corrects the final report accepted by the company, the company may appeal the modified or corrected portions of the final agency order, including the penalty or all or part of any fine or civil penalty imposed in the order, to the district court pursuant to section 24-4-106. In the absence of any modification or corrections to the final report accepted by the company, the company does not have a right to judicial review of the final agency action adopted by the commissioner except for the right to appeal the penalty or all or part of any fine or civil penalty imposed in the order to the district court pursuant to section 24-4-106.
   3. If the company requests a written hearing, the following procedures apply:
      1. The company must request the written hearing in writing and must specify the issues in the final report that the company is challenging. The company is limited to challenging the issues that were previously challenged in the company's written submission and rebuttal or supplemental submission and rebuttal as provided pursuant to subsections (6)(a)(II) and (6)(a)(III) of this section.
      2. The hearing shall be conducted by written arguments submitted to the commissioner.
      3. Discovery is limited to the market conduct surveillance personnel's work papers that are relevant to the issues the company is challenging. The relevant market conduct surveillance personnel's work papers are deemed admitted and included in the record. No other forms of discovery, including depositions and interrogatories, are allowed, except upon the written agreement of the company and the division.
      4. Only the company and the division may submit written arguments.
      5. The company must submit its written argument within thirty days after it requests the hearing.
      6. The division shall submit its written response within thirty days after the end of the period allowed for the company to submit its written argument.
      7. The commissioner shall issue a decision accompanied by findings and conclusions resulting from the commissioner's consideration and review of the written arguments, the final report, relevant market conduct surveillance personnel work papers, and any written submissions or rebuttals. The commissioner's order is a final agency action and shall be served upon the company by certified mail together with a copy of the final report. Unless the effective date of the final agency order is postponed pursuant to section 24-4-106 (5), within sixty days after issuance of the final agency order, the company shall file affidavits executed by each of its directors stating under oath that the directors have received a copy of the final report and related orders.
      8. Any portion of the final report that is not or cannot be challenged by the company is incorporated into the decision of the commissioner.
      9. Notwithstanding the requirements of section 10-1-127, the commissioner's decision is a final agency action appealable to the district court pursuant to section 24-4-106.
7. Findings of fact and conclusions of law in the commissioner's final agency action are prima facie evidence in any legal or regulatory action.
8. 1. The commissioner shall continue to hold the content of any final agency action of a market conduct examination as private and confidential for a period of forty-nine days after the final agency action. After the forty-nine-day period expires, the commissioner shall open the final agency action for public inspection if a court of competent jurisdiction has not stayed its publication.
   2. Nothing in this part 3 prevents the commissioner from disclosing the content of an examination report, preliminary examination report, or results, or any matter relating to a report or results, to the division or to the insurance division of any other state or agency or office of the federal government at any time if the division, agency, or office receiving the report or related matters agrees and has the legal authority to hold it confidential in a manner consistent with this part 3.

Source: L. 2017: Entire part added, (HB 17-1231), ch. 284, p. 1565, § 10, effective January 1, 2018.

10-1-306. Market conduct surveillance personnel.

1. Market conduct surveillance personnel must be qualified by education, experience, and, where applicable, professional designations. The commissioner may supplement the in-house market conduct surveillance staff with qualified outside professional assistance if the commissioner determines that outside assistance is necessary.
2. The commissioner shall not appoint market conduct surveillance personnel who, either directly or indirectly, have a conflict of interest or are affiliated with the management of or own a pecuniary interest in any person subject to any type of market conduct surveillance under this part 3; except that this section does not preclude market conduct surveillance personnel from being:
   1. A policyholder or claimant under an insurance policy;
   2. A grantor of a mortgage or similar instrument on the market conduct surveillance employee's residence to a regulated entity if done under customary terms and in the ordinary course of business;
   3. An investment owner in shares of regulated diversified investment companies; or
   4. A settlor or beneficiary of a blind trust into which any otherwise impermissible holdings have been placed.
3. Notwithstanding any provision of this section to the contrary, the commissioner may retain from time to time, on an individual basis, qualified actuaries, certified public accountants, or similar individuals who are independently practicing their professions even though those individuals may from time to time be similarly employed or retained by companies subject to market conduct surveillance under this part 3.

Source: L. 2017: Entire part added, (HB 17-1231), ch. 284, p. 1569, § 10, effective January 1, 2018.

10-1-307. Immunity from liability - prohibited activity.

1. A cause of action does not arise, and liability shall not be imposed, against the commissioner, the commissioner's authorized representatives, or any market conduct surveillance personnel employed or appointed by the commissioner for any statements made or conduct performed in good faith while carrying out the provisions of this part 3.
2. A cause of action does not arise, and liability shall not be imposed, against any person for communicating or delivering information or data to the commissioner, the commissioner's authorized representative, or any market conduct surveillance personnel pursuant to a market conduct surveillance performed under this part 3, if the communication or delivery was performed in good faith and without fraudulent intent or the intent to deceive.
3. This section does not abrogate or modify any common-law or statutory privilege or immunity enjoyed by any person identified in subsection (1) of this section.
4. A person identified in subsection (1) of this section is entitled to an award of attorney fees and costs if the person is the prevailing party in a civil action for libel, slander, or any other relevant tort arising out of activities in carrying out the provisions of this part 3, and the party bringing the action was not substantially justified in bringing the action. For purposes of this section, a proceeding is "substantially justified" if it had a reasonable basis in law or fact at the time that it was initiated.
5. 1. A company shall not take any retaliatory personnel action against an employee because the employee provides information pursuant to any type of market conduct surveillance examining the practices of the company.
   2. An employee who has been the subject of a retaliatory personnel action in violation of subsection (5)(a) of this section may institute a civil action in a court of competent jurisdiction for relief within one year after learning of the alleged retaliatory action.
   3. A court of competent jurisdiction may order relief as follows:
      1. Reinstatement of the employee to the same position held before the retaliatory personnel action or to an equivalent position;
      2. Reinstatement of full benefits and seniority rights; and
      3. Compensation for lost wages and benefits.
   4. Upon a determination that a company has taken a retaliatory personnel action, the court may award costs of the action together with reasonable attorney fees.

Source: L. 2017: Entire part added, (HB 17-1231), ch. 284, p. 1570, § 10, effective January 1, 2018.

10-1-308. Rules.

In accordance with article 4 of title 24, the commissioner may promulgate reasonable rules that are necessary or proper for implementing and administering this part 3, including rules necessary to align state law with the requirements for accreditation set forth by the NAIC.

Source: L. 2017: Entire part added, (HB 17-1231), ch. 284, p. 1571, § 10, effective January 1, 2018.

10-1-309. Confidentiality requirements.

1. 1. Market conduct surveillance personnel have free and full access to the following documents of and persons associated with the company during regular business hours:
      1. Books;
      2. Records, including any self-evaluation or voluntary compliance program documents;
      3. Employees;
      4. Officers; and
      5. Directors.
   2. Upon request of market conduct surveillance personnel, a company utilizing a third-party model or product for any of the activities being reviewed shall make the details of the models or products available to the personnel.
   3. 1. The commissioner and any other person in the course of market conduct surveillance shall keep confidential all documents, including working papers, third-party models or products, complaint logs, and copies of any documents created, produced, obtained by, or disclosed to the commissioner, market conduct surveillance personnel, or any other person in the course of market conduct surveillance conducted pursuant to this part 3, and all documents obtained by the NAIC as a result of this part 3. The documents remain confidential beyond the termination of the market conduct surveillance, are not subject to subpoena, and must not be made public at any time or used by the commissioner or any other person, except as provided in subsections (2), (3), and (5) of this section and section 10-1-312.
      2. The commissioner, the division, and any other person in the course of market conduct surveillance shall keep confidential any self-evaluation or voluntary compliance program documents disclosed to the commissioner or other person by a company and the data collected via the NAIC market conduct annual statement. The documents are not subject to subpoena and shall not be made public or used by the commissioner or any other person, except as provided in subsections (2), (3), and (5) of this section and section 10-1-312.
2. Notwithstanding subsection (1) of this section, and consistent with subsection (3) of this section, in order to assist in the performance of the commissioner's duties, the commissioner may:
   1. Share documents, materials, communications, or other information, including the confidential and privileged documents, materials, or information specified in subsection (1) of this section, with other state, federal, and international regulatory agencies and law enforcement authorities and the NAIC, its affiliates, and subsidiaries, if the recipient agrees to and has the legal authority to maintain the confidentiality and privileged status of the document, material, communication, or other information;
   2. Receive documents, materials, communications, or information, including otherwise confidential and privileged documents, materials, or information, from the NAIC and its affiliates or subsidiaries, and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material, communication, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, communication, or information; and
   3. Enter into agreements governing the sharing and use of information consistent with this section.
3. Nothing in this part 3 limits:
   1. The commissioner's authority to use, if consistent with section 10-3-414, any final or preliminary examination report, any market conduct surveillance or company work papers or other documents, or any other information discovered or developed during the course of any market conduct surveillance, in the furtherance of any legal or regulatory action initiated by the commissioner that the commissioner may, in the commissioner's sole discretion, deem appropriate; or
   2. The ability of a company to conduct discovery in accordance with section 10-1-305 (6)(c)(III).
4. Disclosure to the commissioner of documents, materials, communications, or information required as part of any type of market conduct surveillance does not waive any applicable privilege or claim of confidentiality in the documents, materials, communications, or information.
5. Notwithstanding the confidentiality requirements in subsection (1)(c) of this section, when the commissioner performs any type of market conduct surveillance that does not rise to the level of a market conduct examination, the commissioner may make the final results of the market conduct surveillance, in an aggregated format, available for public inspection in a manner deemed appropriate by the commissioner.

Source: L. 2017: Entire part added, (HB 17-1231), ch. 284, p. 1571, § 10, effective January 1, 2018.

10-1-310. Fines and penalties.

1. As a result of any market conduct surveillance, the commissioner may order a monetary penalty of up to three thousand dollars for every act in violation of any law, rule, or prior lawful order of the commissioner, not to exceed an aggregate penalty of thirty thousand dollars for every act or violation. If the company knew or reasonably should have known that its conduct was in violation of any law, rule, or prior lawful order of the commissioner, the commissioner may order a penalty of up to thirty thousand dollars for every act or violation, not to exceed an aggregate penalty of two hundred thousand dollars in any one calendar year.
2. The commissioner shall ensure that fines and penalties levied as a result of market conduct surveillance or other action enforcing this part 3 are consistent, reasonable, and justified. Every fine or penalty must relate to the general business practices and compliance activities of insurers and not to clearly infrequent or unintentional random errors that do not cause significant consumer harm.
3. When determining the appropriate civil penalty for a company and whether to stay any portion of the civil penalty, the commissioner shall consider:
   1. Actions taken by the company to maintain membership in, and comply with the standards of, best-practice organizations that promote high ethical standards of conduct in the marketplace;
   2. The extent to which the company maintains regulatory compliance programs to self-assess, self-report, and remediate problems detected; and
   3. Regulatory compliance programs or corrective actions that a company has instituted voluntarily prior to or during the pendency of any market conduct surveillance in order to remedy violations.
4. If the commissioner stays any portion of the civil penalty, the commissioner may reinstate the full civil penalty, and may impose additional penalties, if the company fails to remedy the violations.
5. The commissioner shall include in the final agency order the civil penalty amount per violation for every act in violation of any law, rule, or prior lawful order of the commissioner.

Source: L. 2017: (2) amended, (SB 17-249), ch. 283, p. 1544, § 4, effective September 1; entire part added, (HB 17-1231), ch. 284, p. 1573, § 10, effective January 1, 2018.

10-1-311. Participation in national market conduct databases.

1. The commissioner shall report market data to the NAIC's market information systems, including the complaint database system, the examination tracking system, and the regulatory information retrieval system, or other successor NAIC products as determined by the commissioner.
2. 1. The commissioner shall report complaints to the NAIC complaint database system, or its successor product, in accordance with NAIC guidelines. However, before publication of company-specific complaint information by the commissioner, insurance industry personnel shall be given the opportunity to review Colorado-specific complaints assigned to their company in the commissioner's complaints database and request that corrections be made to the data. The commissioner shall review company objections to assigned complaints before publishing company-specific complaints information and shall make corrections to the commissioner's complaints database when appropriate. If the commissioner makes corrections to its complaints database based on errors identified by a company, the commissioner shall send corrected data to the NAIC complaint database system, or its successor product.
   2. The commissioner shall ensure that companies have until at least February 15 to review complaints data for the immediately preceding calendar year. In order for a company's objections to its complaints data information to be considered, the company must review and request any corrections to the prior calendar year's complaints data no later than February 15.
3. Information maintained by the commissioner shall be compiled in a manner that meets the requirements of the NAIC.

Source: L. 2017: Entire part added, (HB 17-1231), ch. 284, p. 1574, § 10, effective January 1, 2018.

10-1-312. Coordination with other states through NAIC.

1. The commissioner may share information and coordinate the commissioner's market surveillance efforts with other states through the NAIC.
2. Consistent with section 10-1-309, in order to assist in the performance of the commissioner's duties, the commissioner may:
   1. Share documents, materials, communications, or other information, including the confidential and privileged documents, materials, or information subject to section 10-1-309 (1), with other state, federal, and international regulatory agencies and law enforcement authorities and the NAIC, its affiliates, and subsidiaries, if the recipient agrees to and has the legal authority to maintain the confidentiality and privileged status of the document, material, communication, or other information;
   2. Receive documents, materials, communications, or information, including otherwise confidential and privileged documents, materials, or information, from the NAIC and its affiliates or subsidiaries, and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material, communication, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, communication, or information; and
   3. Enter into agreements governing the sharing and use of information consistent with this section.

Source: L. 2017: Entire part added, (HB 17-1231), ch. 284, p. 1574, § 10, effective January 1, 2018.

ARTICLE 2 LICENSES

Editor's note:

1. This article was numbered as articles 1 and 32 of chapter 72, C.R.S. 1963. Part 2 of this article was repealed and reenacted in 1977 and the substantive provisions of this article were repealed and reenacted in 1993, effective January 1, 1995, resulting in the addition, relocation, and elimination of sections as well as subject matter. For amendments to this article prior to 1993, consult the Colorado statutory research explanatory note and the table itemizing the replacement volumes and supplements to the original volume of C.R.S. 1973 beginning on page vii in the front of this volume. Former C.R.S. section numbers, prior to 1993, are shown in editor's notes following those sections that were relocated.
2. The effective date and applicability for this article are contained in § 10-2-1101.

Cross references: For an alternative disciplinary action that may be imposed upon persons licensed pursuant to this article, see § 24-34-106.

Section

PART 1 GENERAL PROVISIONS

PART 2 PRELICENSURE EDUCATION

PART 3 CONTINUING EDUCATION

PART 4 LICENSING AND APPOINTMENT OF INSURANCE PRODUCERS

PART 5 NONRESIDENT LICENSES

PART 6 BANKS AND BANK HOLDING COMPANIES

PART 7 BUSINESS CONDUCT OF LICENSEES

PART 8 DISCIPLINARY ACTIONS

PART 9 REINSURANCE INTERMEDIARY MODEL ACT

PART 10 MANAGING GENERAL AGENTS ACT

PART 11 EFFECTIVE DATE - APPLICABILITY

10-2-101. Short title.

This article shall be known and may be cited as the "Colorado Producer Licensing Model Act".

Source: L. 93: Entire article R&RE, p. 1348, § 1, effective January 1, 1995. L. 2001: Entire section amended, p. 1190, § 1, effective January 1, 2002.

10-2-102. Scope - applicability.

This article governs the qualifications and procedures for the licensing of insurance producers. This article is intended to simplify and organize some statutory language to improve efficiency, permit the use of new technology, and reduce costs associated with issuing, continuing, and renewing insurance licenses.

Source: L. 93: Entire article R&RE, p. 1348, § 1, effective January 1, 1995. L. 2001: Entire section amended, p. 1190, § 2, effective January 1, 2002.

Editor's note: This section is similar to former § 10-2-201 as it existed prior to 1993.

10-2-103. Definitions.

As used in this article, unless the context otherwise requires:

1. "Catastrophic disaster" means an event, as declared by the president of the United States or the governor, or both, which results in large numbers of deaths or injuries; causes extensive damage or destruction of property or facilities that provide and sustain human needs; produces an overwhelming demand on state and local response resources and mechanisms; causes a severe long-term effect on general economic activity; or severely affects state, local, and private sector capabilities to begin and sustain response activities.

   (1.5) "Commissioner" means the commissioner of insurance.

2. "Health coverage" means accident and health or sickness and accident policies or contracts including other health coverages provided by insurers, health maintenance organizations, or nonprofit hospital and surgical plans.

   (2.5) "Home state" means the District of Columbia and any state or territory of the United States in which an insurance producer meets the following:

   1. Maintains the producer's principal place of residence or principal place of business; and
   2. Is licensed to act as an insurance producer.
3. "Individual" means any private or natural person as distinguished from a partnership, corporation, association, or any foreign or domestic entity as defined in section 7-90-102, C.R.S.
4. "Insurance" means any of the lines of authority set forth in section 10-2-407 (1).
5. "Insurance agency" or "business entity" means a corporation, partnership, association, or foreign or domestic entity as defined in section 7-90-102, C.R.S., or other legal entity that transacts the business of insurance.
6. "Insurance producer" or "producer", except as otherwise provided in section 10-2-105, means:
   1. A person who solicits, negotiates, effects, procures, delivers, renews, continues, or binds:
      1. Policies of insurance for risks residing, located, or to be performed in this state;
      2. Membership in a prepayment plan as defined in parts 2 and 3 of article 16 of this title; or
      3. Membership enrollment in a health-care plan as defined in part 4 of article 16 of this title; and
   2. A public adjuster.

   (6.5) "Insurer" means every person engaged as principal, indemnitor, surety, or contractor in the business of making contracts of insurance.

7. "License" means a document issued by the commissioner that authorizes a person to act as an insurance producer for the lines of authority, specified in such document. The license itself does not create any authority, actual, apparent, or inherent, in the holder to represent or commit an insurance carrier to a binding agreement.

   (7.1) "Limited line insurance" means those lines of authority other than those defined in section 10-2-407 (1)(a) to (1)(e) or any other line of insurance that the commissioner may deem necessary to recognize for the purpose of complying with section 10-2-502.

   (7.3) "Limited line producer" means a person authorized by the commissioner to sell, solicit, or negotiate limited lines of insurance.

   (7.5) "Limited lines credit insurance" includes credit life, credit disability, credit property, credit unemployment, involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, guaranteed automobile protection insurance, and any other form of insurance offered in connection with an extension of credit that is limited to partially or wholly extinguishing the insured credit obligation that the commissioner determines should be designated a form of limited line credit insurance.

   (7.7) "Limited lines credit insurance producer" means a person who sells, solicits, or negotiates one or more forms of limited lines credit insurance coverage to individuals through a master, corporate, group, or individual policy.

   (7.9) "Negotiate" means the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms, or conditions of the contract, if the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers or acts as a public adjuster.

8. "Person" includes any individual or a business entity.

   (8.5) "Public adjuster" means any person who, for compensation or any other thing of value on behalf of the insured:

   1. Acts or aids, solely in relation to first-party claims arising under insurance contracts that insure the real or personal property or allied lines of the insured, on behalf of an insured in negotiating for, or effecting, the settlement of a claim for loss or damage covered by an insurance contract;
   2. Advertises for employment as a public adjuster of insurance claims or solicits business or represents himself or herself to the public as a public adjuster of first-party insurance claims for losses or damages arising out of policies of insurance that insure real or personal property or allied lines; or
   3. Directly or indirectly solicits business, investigates or adjusts losses, or advises an insured about first-party claims for losses or damages arising out of policies of insurance that insure real or personal property or allied lines for another person engaged in the business of adjusting losses or damages covered by an insurance policy for the insured.
9. (Deleted by amendment, L. 2001, p. 1190 , § 3, effective January 1, 2002.)
10. "Sell" means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurance company.
11. "Solicit" means attempting to sell insurance, asking or urging a person to apply for a particular kind of insurance from a particular company, or asking or urging a person to use the services of, or services in connection with activities as, a public adjuster.
12. "Terminate" means the cancellation of the relationship between an insurance producer and the insurer or the termination of a producer's authority to transact insurance.
13. "Uniform business entity application" means the current version of the national association of insurance commissioners' uniform business entity application for resident and nonresident business entities.
14. "Uniform application" means the current version of the national association of insurance commissioners' uniform application for resident and nonresident producer licensing.

Source: L. 93: Entire article R&RE, p. 1348, § 1, effective January 1, 1995. L. 2001: (2.5), (6.5), (7.1), (7.3), (7.5), (7.7), (7.9), (10), (11), (12), (13), and (14) added and (3), (4), (5), (7), (8), and (9) amended, p. 1190, § 3, effective January 1, 2002. L. 2009: (7.1), (7.3), (7.5), and (7.7) amended, (SB 09-292), ch. 369, p. 1940, § 10, effective August 5. L. 2013: (1), (6), (7.9), and (11) amended and (1.5) and (8.5) added, (HB 13-1062), ch. 61, p. 200, § 1, effective January 1, 2014.

Editor's note: This section is similar to former §§ 10-2-102 and 10-2-202 as they existed prior to 1993.

10-2-104. Authority of commissioner - rules.

Pursuant to the provisions of article 4 of title 24, C.R.S., the commissioner may promulgate reasonable rules for the implementation and administration of the provisions of this article. The commissioner may contract with any party for the purpose of performing any ministerial duty required of the commissioner under this article. All reasonable charges and expenses of such contractors shall be paid directly to the contractors by licensees.

Source: L. 93: Entire article R&RE, p. 1349, § 1, effective January 1, 1995. L. 2001: Entire section amended, p. 1192, § 4, effective January 1, 2002.

Editor's note: This section is similar to former § 10-2-220 as it existed prior to 1993.

10-2-105. Insurance producer - exemptions from definition.

1. Nothing in this article shall be construed to require an insurer to obtain an insurance producer license. In this section, the term "insurer" does not include an insurer's officers, directors, employees, subsidiaries, or affiliates.
2. Notwithstanding section 10-2-103 (6), "insurance producer" does not include the following:
   1. Any person who is a regularly salaried officer, director, or employee of an insurance company or an insurance producer and who is engaged in the performance of usual or customary executive, administrative, or clerical duties which do not include the negotiation or solicitation of insurance, so long as the officer, director, or employee does not receive any commission on policies written or sold to insure risks residing, located, or to be performed in this state;
   2. Any person who is a salaried employee in the office of an insurance producer or insurer and who devotes full time to clerical and administrative services, including the incidental taking of insurance applications and receipt of premiums in the office of such person's employer, so long as the person does not receive any commission on such applications and the person's compensation is not varied by the volume of applications or premiums taken or received;
   3. An officer, director, or employee whose activities are executive, administrative, managerial, clerical, or a combination of these, and are only indirectly related to the sale, solicitation, or negotiation of insurance;
   4. An officer, director, or employee whose function relates to underwriting, loss control, inspection, or the processing, adjusting, investigating, or settling of a claim on a contract of insurance;
   5. An officer, director, or employee who is acting in the capacity of a special agent or agency supervisor assisting insurance producers, where the officer's, director's, or employee's activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation, or negotiation of insurance;
   6. A person who secures and furnishes information for the purpose of group life insurance, group property and casualty insurance, group annuities, or group or blanket accident and health insurance or for the purpose of enrolling individuals under plans, issuing certificates under plans, or otherwise assisting in administering plans or performs administrative services related to mass marketed property and casualty insurance, where no commission is paid to the person for the service;
   7. Employers, associations, or their officers, directors, or employees, or the trustees of any employee trust plan, to the extent that such employers, associations, officers, directors, employees, or trustees are engaged in the administration or operation of any program of employee benefits for their own employees or the employees of their subsidiaries or affiliates, which program involves the use of insurance issued by an insurer; except that such employers, associations, officers, directors, employees, or trustees shall not in any manner be compensated, directly or indirectly, by the company issuing the contracts;
   8. Employees of insurers or insurance agencies or organizations employed by insurers or insurance agencies who are engaging in the inspection, rating, or classification of risks or in the supervision of the training of insurance producers and who are not individually engaged in the solicitation or negotiation of policies or contracts for insurance;
   9. Management associations, partnerships, or corporations whose operations do not entail solicitation of insurance from the public;
   10. Officers or employees of a motor vehicle rental company that offers coverage in connection with and incidental to the rental of motor vehicles under motor vehicle rental agreements, so long as such coverage is:
       1. Offered at the point of the rental transaction or by preselection of coverage in master, corporate, group, or individual rental agreements;
       2. Limited in scope to the parties to such motor vehicle rental agreements and to other authorized drivers or occupants of the vehicles being rented;
       3. Limited in duration to coverage of damages incurred as a result of events occurring during the rental period; and
       4. For traditionally recognized risks associated with motor vehicle operation and travel, including, without limitation, personal injury or death, personal liability and property damage, collision, damage to or loss of personal effects, roadside assistance, and emergency repairs;
   11. A person whose activities in this state are limited to advertising without the intent to solicit insurance in this state through communications in printed publications or other forms of electronic mass media whose distribution is not limited to residents of the state, so long as the person does not sell, solicit, or negotiate insurance that would insure risks residing, located, or to be performed in this state;
   12. A person who is not a resident of this state who sells, solicits, or negotiates a contract of insurance, for commercial property and casualty risks, to an insured with risks located in more than one state insured under that contract, so long as the person is otherwise licensed as an insurance producer to sell, solicit, or negotiate that insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state; or
   13. A salaried full-time employee who counsels or advises his or her employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer, so long as the employee does not sell or solicit insurance or receive a commission.

   (2.5) With respect to public adjusters, a license as a public adjuster is not required for:

   1. An attorney-at-law admitted to practice in this state, when acting in his or her professional capacity as an attorney;
   2. A person who negotiates or settles claims arising under a life or health insurance policy or an annuity contract;
   3. A person employed only for the purpose of obtaining facts surrounding a loss or furnishing technical assistance of an incidental nature to a licensed public adjuster, including a photographer, estimator, private investigator, engineer, or handwriting expert;
   4. A licensed health-care provider, or employee of a licensed health-care provider, who prepares or files a health claim form on behalf of a patient; or
   5. A person who settles subrogation claims between insurers.

Source: L. 93: Entire article R&RE, p. 1350, § 1, effective January 1, 1995. L. 98: (1)(g) added, p. 234, § 3, effective April 10. L. 2001: Entire section amended, p. 1192, § 5, effective January 1, 2002. L. 2013: (2.5) added, (HB 13-1062), ch. 61, p. 201, § 2, effective January 1, 2014.

Editor's note: This section is similar to former § 10-2-209 as it existed prior to 1993.

Cross references: For the legislative declaration contained in the 1998 act enacting subsection (1)(g), see section 1 of chapter 88, Session Laws of Colorado 1998.

10-2-201. Prelicensure education - when required.

1. 1. Except as otherwise provided in section 10-2-202, in addition to other requirements for licensure as specified under this article and as a condition of initial licensure, an individual applicant for qualification in life, sickness and accident, or property and casualty lines shall be required to provide evidence to the commissioner that the individual applicant has satisfactorily completed an approved prelicensure education or training course or program as follows:
      1. An individual seeking insurance producer licensure authority for life insurance shall complete at least fifty hours of an approved course or program for certification in life insurance; and, of the said fifty hours, at least three hours shall pertain specifically to insurance industry ethics;
      2. An individual seeking insurance producer licensure authority for health coverage shall complete at least fifty hours of an approved course or program for certification in sickness and accident insurance; and, of the said fifty hours, at least three hours shall pertain specifically to insurance industry ethics;
      3. An individual seeking insurance producer licensure authority for property or casualty insurance or both shall complete at least fifty hours of an approved course or program for certification in property or casualty insurance or both; and, of the said fifty hours, at least three hours shall pertain specifically to insurance industry ethics.
   2. An individual seeking an insurance producer license to include life, sickness and accident, property, or casualty lines or any combination thereof shall not be eligible to take the written examination provided for in section 10-2-402 until the prelicensure education requirements specified in this subsection (1) pertaining to the line or lines of insurance applied for have been satisfied.
2. The commissioner shall adopt all rules necessary to carry out the prelicensing education provisions of this section. Such rules shall set forth standards for courses and programs to qualify for approval by the commissioner and shall also prescribe a system of control and reporting.
3. An individual seeking an insurance producer license shall pay to the commissioner, in addition to any other applicable fees or charges, a fee established by the commissioner in accordance with section 10-2-413 for operation of the prelicensing education program.

Source: L. 93: Entire article R&RE, p. 1350, § 1, effective January 1, 1995.

10-2-202. Exemption from prelicensure education requirements.

1. Prelicensure education as set forth in section 10-2-201 shall not be required of an individual who is:
   1. Applying to reinstate a canceled or expired resident insurance producer license in this state when such license has been inactive for one year or less;
   2. Applying for temporary license authority under section 10-2-410;
   3. Applying for a resident insurance producer license in this state, was previously licensed in his or her former resident state, and has completed or satisfied prelicensure education as required by that state pertinent to the line or lines of insurance applied for in Colorado;
   4. Applying for a nonresident license in this state pertinent to the line or lines of authority held in the producer's home state.

Source: L. 93: Entire article R&RE, p. 1351, § 1, effective January 1, 1995. L. 2001: (1)(d) amended, p. 1194, § 6, effective January 1, 2002.

10-2-203. Course certification, registration, and review by commissioner.

1. Prelicensure education courses or programs that will be provided and offered to persons applying for life, sickness and accident, property, or casualty licensing are subject to review and certification by the commissioner, except that:
   1. Any full-time program of prelicensure education operated by a qualified domestic company or a company with a qualified home office located in Colorado shall not be subject to review and certification by the commissioner; and
   2. Any applicant or licensee who has attended such a course or program shall be deemed in compliance with the provisions of section 10-2-201 upon certification by the applicant that he or she has completed all required hours of instruction through such a course or program.
2. Course instruction, content, outline, and course instructors are subject to initial approval by the commissioner and, at the discretion of the commissioner, are also subject to periodic review for continuation. The course provider shall remit the fee as prescribed in accordance with section 10-2-413 to continue or renew such approved course or program.
3. If, upon review, the commissioner finds that a prelicensure education course or program is not in compliance with all applicable standards, as set forth by rule, the commissioner may order the course or program to be discontinued or revoke the approval of the course provider or both.

Source: L. 93: Entire article R&RE, p. 1352, § 1, effective January 1, 1995.

10-2-301. Continuing education requirement - rules.

1. Producers not exempt from the requirements of this section shall satisfactorily complete up to twenty-four hours of instruction by attending courses or programs of instruction approved by the commissioner. At least three of the twenty-four hours of continuing education must be for courses in ethics. For producers authorized to sell property or personal insurance lines of business, at least three of the twenty-four hours of continuing education must be for courses in homeowner's insurance coverage. The commissioner may adopt rules concerning testing requirements as a part of the certified continuing education. The producer shall complete the required hours of instruction within twenty-four months after the date the producer's license renews, beginning with renewal dates on or after January 1, 1993. A producer may accumulate no more than twelve carry-over credit hours during the one hundred twenty days before the licensing continuation date. Carry-over credits apply to the next continuing education period. If a producer has more than one license to sell insurance in this state, the producer shall complete the required hours of instruction within twenty-four months after the date of renewal of the first license. For good cause shown, the commissioner may grant an extension of time, not exceeding one additional year, within which to comply with this section. An instructor of an approved course of instruction qualifies for the same number of hours of continuing education as a person attending and successfully completing the course or program, but an instructor shall not receive credit more than once for a course or program given more than once during the twenty-four-month period described in this subsection (1).
2. Any producer who is subject to the requirements of this section shall furnish in a form satisfactory to the commissioner written proof of compliance with the requirements of this section. The requirements of this section are mandatory for any person specified in subsection (3)(a) of this section, and if any such person holds more than one license which is described in subsection (3) of this section, such person shall be required to complete the hours of instruction required under this section only once. For purposes of this section, the term "person" shall include any holder of a license to sell insurance under the laws of this state.
3. 1. The requirements of this section shall apply to any resident person licensed to solicit and sell the following types of insurance in this state:
      1. Life insurance and annuity contracts, including variable life and annuity contracts;
      2. Sickness, accident and health insurance;
      3. Property and casualty insurance; and
      4. Any other type of insurance for which the state requires an examination for licensure.
   2. This section shall not apply to any person holding a limited or restricted license if such license is in good standing with the division and no complaints have been filed against the licensee.
   1. (3.5) (a) An individual who holds a public adjuster license and who is not exempt under paragraph (b) of this subsection (3.5) shall satisfactorily complete continuing education courses as required by the commissioner under this section.
   2. Licensees holding nonresident public adjuster licenses who have met the continuing education requirements of their home state and whose home state gives credit to residents of this state on the same basis meet the requirements of this section.
4. Written certification of any course of instruction completed shall be executed by or on behalf of the sponsoring organization, in a form satisfactory to the commissioner.
5. Any person who fails to comply with the requirements of this section, or is found after a hearing before the division to have submitted a false or fraudulent certificate of compliance to the commissioner, shall have his or her license suspended until such person satisfactorily demonstrates to the commissioner that all of the requirements of this section, and any other applicable licensing requirement or other statute, have been met.
6. 1. The commissioner shall be responsible for administering the continuing insurance education requirements under this article and approving courses of instruction that qualify for such purposes. The commissioner shall promulgate such rules as the commissioner deems necessary to administer the continuing education requirements, including the provisions and requirements of this section. The commissioner shall also promulgate rules requiring that producers be required to provide to a continuing education administrator proof of compliance with the continuing education requirements as a condition of license renewal. For persons licensed pursuant to section 10-11-116 (1)(c), compliance with the continuing legal education credits requirements of the Colorado supreme court shall be deemed to meet the requirements of this section.
   2. The position of continuing education administrator shall be established by the commissioner either within the division of insurance or through a contractual arrangement with an outside service provider. All costs of such administrator shall be paid from continuing insurance education fees paid by producers in the manner provided by this section. In no event may the commissioner delegate course approval responsibilities to the continuing education administrator.
   3. Each producer licensed under this article is responsible for paying to the continuing education administrator a reasonable biennial fee for the operation of the continuing education programs, which fee is used to administer the provisions of this section.
   1. (6.5) (a) Continuing education course instruction, content, outline, and course providers are subject to initial approval by the commissioner and, at the discretion of the commissioner, are subject to periodic review for continuation.
   2. If, upon review, the commissioner determines that a continuing education course or program is not in compliance with all applicable standards, as set forth by rule, the commissioner may order the course or program to be discontinued or revoke approval of the course provider, or both.
7. Repealed.

Source: L. 93: Entire article R&RE, p. 1352, § 1, effective January 1, 1995. L. 94: (3)(b), (5), and (6)(b) amended, p. 1628, § 22, effective January 1, 1995. L. 95: (6.5) added, p. 89, § 1, effective March 30; (6)(a) and (6)(c) amended, p. 288, § 13, effective July 1. L. 99: (7) repealed, p. 104, § 1, effective March 24. L. 2001: (3) amended, p. 1195, § 7, effective January 1, 2002. L. 2004: (1) amended, p. 979, § 2, effective August 4. L. 2012: (6)(a) and (6)(c) amended, (HB 12-1266), ch. 280, p. 1494, § 8, effective July 1. L. 2013: (1) amended, (HB 13-1225), ch. 183, p. 676, § 4, effective January 1, 2014; (3.5) added, (HB 13-1062), ch. 61, p. 202, § 3, effective January 1, 2014.

Editor's note: This section is similar to former § 10-2-207.5 as it existed prior to 1993.

Cross references: In 2013, subsection (1) was amended by the "Homeowner's Insurance Reform Act of 2013". For the short title, see section 1 of chapter 183, Session Laws of Colorado 2013.

10-2-401. License required.

1. No person shall act as or hold oneself out to be an insurance producer unless duly licensed as an insurance producer in accordance with this article. Every insurance producer who solicits or negotiates an application for insurance of any kind on behalf of an insurer shall be regarded as representing the insurer and not the insured or any beneficiary of the insured in any controversy between the insurer and such insured or beneficiary. A person shall not sell, solicit, or negotiate insurance in this state for any class or classes of insurance unless the person is licensed for that line of authority in accordance with this article.
2. No insurance producer shall make application for, procure, negotiate for, or place for others any policies for any line or lines of insurance for which he or she is not then qualified and licensed.
3. 1. Any representative of a fraternal benefit society who solicits and negotiates insurance contracts is an insurance producer and is subject to the same licensing requirements as those for an insurance producer; except that a license is not required of any officer, employee, or secretary of a fraternal benefit society or of a subordinate lodge or branch thereof who devotes substantially all of his or her time to activities other than the solicitation or negotiation of insurance contracts and who receives no commission or other compensation directly dependent upon the number or amount of insurance contracts solicited or negotiated.
   2. Any agent, representative, or member of a fraternal benefit society who in the preceding calendar year solicited and procured life insurance contracts on behalf of any society in a face amount of insurance not exceeding fifty thousand dollars or, in the case of any other kind of insurance that the fraternal benefit society may write, solicited and procured such insurance on behalf of not more than twenty-five individuals, who received no commissions or other compensation therefor, and who does not reasonably expect to exceed soliciting or procuring insurance on behalf of more than twenty-five individuals in the current year, shall be exempt from the licensing requirements for an insurance producer.
4. No insurance producer license shall be granted or extended to any person if the license is being or will be used for the purpose of writing controlled business. As used in this section, "controlled business" means insurance procured or to be procured by or through such person upon:
   1. The person's own life, person, property, or risks, or those of his or her spouse; or
   2. The life, person, property, or risks of the person's employer or the person's own business.
5. Such a license shall be deemed to have been, or intended to be, used for the purpose of writing controlled business, if during any twelve-month period the aggregate amount of premiums on controlled business would exceed the aggregate amount of premiums on all other insurance business of the applicant or licensee.
6. A title insurance agent and a title insurance company, as defined in section 10-11-102 (9) and (10), shall disclose the names of all affiliated business arrangements to which the company or agent is a party at the time of application for a new license, on the continuation due date of an existing license, and upon a change to any identifying information, in a form and manner acceptable to the commissioner. The disclosure shall include the physical location of the affiliated businesses, identify the settlement producer with whom the company or agent is associated, and identify the underwriter of the title insurance business.

Source: L. 93: Entire article R&RE, p. 1355, § 1, effective January 1, 1995. L. 94: (3) amended, p. 740, § 1, effective January 1, 1995. L. 2001: (1) amended, p. 1195, § 8, effective January 1, 2002. L. 2006: (6) added, p. 268, § 3, effective July 1.

Editor's note: This section is similar to former §§ 10-2-102 and 10-2-204 as they existed prior to 1993.

Cross references: For the provisions pertaining to fraternal benefit societies, see article 14 of this title 10.

10-2-402. License examination requirement.

1. Unless exempt pursuant to section 10-2-403, a resident individual applying for an insurance producer license shall pass a written examination. The examination shall reasonably test the individual applicant's minimum acceptable level of competence as to the particular line or lines of authority for which the individual applicant seeks qualification, unless an individual applicant has been licensed as an insurance producer for the same line or lines of authority in another state within the twelve months immediately preceding the date of receipt of application and files with the commissioner a letter of clearance, issued by the public official having supervision of insurance in the applicant's former state of residence, stating the individual held a license for the same line or lines of authority during such twelve-month period and that the license was in good standing.
2. Examination for licensing shall be held at such reasonable times and places as are designated by the commissioner, and such times and places shall be made public.
3. 1. Each individual applying for an examination shall remit a nonrefundable fee as prescribed by the commissioner in accordance with section 10-2-413.
   2. The application for examination shall request the applicant to provide the following information:
      1. The applicant's name, age, residence address, business address, and mailing address;
      2. The name of any required prelicensing course he or she has completed or is in the process of completing;
      3. The method by which the applicant intends to qualify for the license if other than completing a prelicensing course;
      4. The highest level of education achieved by the applicant; and
      5. The applicant's gender, native language, and race or ethnicity; except that the application shall contain a statement that an applicant is not required to disclose his or her gender, native language, or race or ethnicity, that he or she will not be penalized for not doing so, and that the department will use this information exclusively for research and statistical purposes and to improve the quality and fairness of the examinations.
   3. No later than six months after August 5, 2008, and annually thereafter, the commissioner shall prepare and publish a report that summarizes statistical information relating to insurance producer examinations administered during the preceding calendar year. The report shall include the following information for all examinees combined and separately by race or ethnicity, gender, race or ethnicity within gender, education level, and native language:
      1. The total number of examinees;
      2. The percentage and number of examinees who passed the examination;
      3. The mean scaled scores on the examination; and
      4. Standard deviation of scaled scores on the examination.
   4. If the commissioner arranges to have the examinations for licensure administered by an independent testing service pursuant to section 10-2-402 (5), the commissioner may provide demographic information to the testing service if the commissioner requires the independent examiner to review and analyze examination results in conjunction with the gender, native language, education level, and race or ethnicity of the examinees.
4. (Deleted by amendment, L. 2001, p. 1195 , § 9, effective January 1, 2002.)
5. The commissioner shall give, conduct, and grade all examinations, or the commissioner may arrange to have examinations administered and graded by an independent testing service, as specified by contract, in a fair and impartial manner and without discrimination as to individuals examined. The commissioner may arrange for such testing service to recover the cost of the examination from the applicant.
6. There shall be a separate portion of the examination required for each line of insurance which the applicant proposes to transact under the license.
7. (Deleted by amendment, L. 2001, p. 1195 , § 9, effective January 1, 2002.)
8. An individual who fails to pass an examination shall remit the required fee and any forms required to retake the failed examination.
9. An individual who fails to appear for a scheduled examination shall remit the required fee and any forms required to reapply to take the examination.
10. Applicants for life, health coverages, property, or casualty examinations shall comply with prelicensure education requirements as prescribed in section 10-2-201 prior to taking the written examination.
11. An insurance producer license issued on or before January 1, 2002, for health maintenance organizations ("HMO") or nonprofits may be renewed or continued until the licensee fails to meet the requirements of this part 4.

Source: L. 93: Entire article R&RE, p. 1356, § 1, effective January 1, 1995. L. 97: (5) amended, p. 1616, § 3, effective July 1. L. 2001: (1), (4), and (7) amended and (11) added, p. 1195, § 9, effective January 1, 2002. L. 2008: (11) amended, p. 209, § 2, effective March 26; (3) amended, p. 1515, § 1, effective August 5.

Editor's note: This section is similar to former §§ 10-2-106 and 10-2-207 as they existed prior to 1993.

10-2-403. Exemption from license examination.

1. The following applicants shall be exempt from the written examination requirements set forth in section 10-2-402:
   1. An individual who applies for an insurance producer license in this state who was previously licensed for the same lines of authority in this state or another state shall not be required to complete any prelicensing education or examination. This exemption is only available to a nonresident applicant if:
      1. 1. The person is currently licensed in his or her home state for the same line or lines of authority; or
         2. The application is received within twelve months after the cancellation of the applicant's previous license; and
      2. 1. The prior state issues a certification that, at the time of cancellation, the applicant was in good standing in that state; or
         2. The state's producer database records, maintained by the national association of insurance commissioners or its affiliates or subsidiaries, indicate that the producer is or was licensed in good standing for the line of authority requested.
   2. An individual applicant for a health maintenance organization or nonprofit hospital representative producer license or a travel-ticket-selling insurance producer license to solicit, procure, and deliver accident and health or travel baggage insurance policies offered by a life, casualty, or multiple-line insurer licensed in this state;
   3. A person licensed as an insurance producer in another state who moves to this state shall make application within ninety days after establishing legal residence to become a resident licensee pursuant to section 10-2-404. No prelicensing education or examination shall be required of that person to obtain any line of authority previously held in the prior state except where the insurance commissioner determines otherwise by regulation.
   4. An individual applicant who holds the designation of chartered life underwriter ("CLU"); except that such individual is not exempt from that portion of the examination pertaining to Colorado laws and rules pertinent to life insurance and health coverage insurance;
   5. An individual applicant who has attained the designation of chartered property and casualty underwriter ("CPCU"); except that such individual is not exempt from taking that portion of the examination pertaining to Colorado laws and rules pertaining to property, casualty, or health coverage;
   6. A nonresident individual applicant who is in compliance with section 10-2-501 (1)(a);
   7. A licensed life insurance producer applicant for a variable contracts license who is in compliance with the qualification requirement in section 10-2-407;
   8. An individual applicant who holds the designation of chartered financial consultant ("ChFC"); except that such individual is not exempt from that portion of the examination pertaining to Colorado laws and rules pertinent to life insurance and health coverage insurance;
   9. An individual applicant who holds the designation of registered health underwriter ("RHU"); except that such individual is not exempt from that portion of the examination pertaining to Colorado laws and rules pertinent to life insurance and health coverage insurance.

Source: L. 93: Entire article R&RE, p. 1357, § 1, effective January 1, 1995. L. 95: (1)(c) amended, p. 90, § 3, effective March 30. L. 2001: (1)(a) and (1)(f) amended and (1)(b.5), (1)(g), and (1)(h) added, p. 1196, § 10, effective January 1, 2002. L. 2003: IP(1) amended, p. 1982, § 6, effective May 22.

Editor's note: This section is similar to former § 10-2-211 as it existed prior to 1993.

10-2-404. Application for license.

1. An applicant for a resident insurance producer license shall make application on a form specified by the commissioner and shall declare under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct, and complete to the best of the individual's knowledge and belief. Before approving the application, the commissioner shall verify that:
   1. The individual is at least eighteen years of age;
   2. The individual has not committed any act which is a ground for denial, suspension, or revocation as set forth in section 10-2-801;
   3. The individual is a resident of this state or is a resident of another state and meets the requirements of section 10-2-502;
   4. If the individual applicant is a nonresident, such applicant has furnished the commissioner with a current certification of license status pursuant to section 10-2-502 (1)(e);
   5. Unless exempt, the individual has satisfied minimum prelicensure education requirements pursuant to part 2 of this article;
   6. The individual has paid the license fee prescribed by the commissioner in accordance with section 10-2-413;
   7. The individual has successfully passed the examination or has satisfied examination qualification requirements for the line or lines of authority for which the individual has applied; and
   8. The individual is competent, trustworthy, and of good moral character and good business reputation.
2. An insurance agency or business entity acting as an insurance producer shall obtain an insurance producer license. Application shall be made on a form specified by the commissioner. Before approving the application, the commissioner shall verify that:
   1. The agency has disclosed to the insurance commissioner all officers, partners, and directors, whether or not they are licensed as insurance producers;
   2. The agency's officers, directors, or partners are trustworthy, of good moral character, and of good business reputation;
   3. The insurance agency or business entity has paid the fees prescribed by the commissioner in accordance with section 10-2-413;
   4. The insurance agency or business entity has designated a licensed producer who is an officer, partner, or director responsible for the insurance agency's or business entity's compliance with the insurance laws and rules of this state;
   5. The insurance agency or business entity has registered with the commissioner the name of each natural person who, as an officer, director, partner, owner, or member of the insurance agency or business entity, is acting as and is licensed as an insurance producer;
   6. The insurance agency or business entity has registered with the commissioner at least one individual who holds a valid insurance producer license for the line or lines of authority requested in the application;
   7. If the insurance agency's or business entity's filing status is nonresident, the insurance agency or business entity has complied with the qualification requirements of section 10-2-502.
3. The commissioner may require the filing of any documents reasonably necessary to verify the information contained or required in the application.
4. Each insurer that sells, solicits, or negotiates any form of limited line credit insurance shall provide to each individual whose duties will include selling, soliciting, or negotiating limited lines credit insurance, a program of instruction that may be approved by the insurance commissioner.

Source: L. 93: Entire article R&RE, p. 1357, § 1, effective January 1, 1995. L. 2001: IP(1), (1)(c), (1)(d), (1)(g), IP(2), (2)(c), (2)(d), (2)(e), (2)(f), and (2)(g) amended and (4) added, p. 1197, § 11, effective January 1, 2002.

Editor's note: This section is similar to former §§ 10-2-103 and 10-2-207 as they existed prior to 1993.

10-2-405. Residency - individuals - agencies.

1. The commissioner may qualify an applicant as a resident of this state and shall issue an insurance producer license to any qualified resident person of this state in accordance with the following:
   1. An individual applicant may qualify as a resident only if he or she resides in this state. Any license issued pursuant to any application claiming residency for licensing purposes shall constitute an election of residency in this state and shall be void if the licensee, while holding a resident license in this state, also holds or makes application for a license in or thereafter claims to be a resident of any other state or jurisdiction, or if the licensee ceases to be a resident of this state.
   2. An insurance agency or business entity may qualify as a resident if the agency has its principal office in this state;
   3. The resident person is in compliance with the requirements of section 10-2-404.

Source: L. 93: Entire article R&RE, p. 1359, § 1, effective January 1, 1995. L. 2001: (1)(b) amended, p. 1198, § 12, effective January 1, 2002.

Editor's note: This section is similar to former § 10-2-207 as it existed prior to 1993.

10-2-406. Licensing of agencies.

1. For the purposes set forth in section 10-2-701, an insurance agency or business entity shall be licensed as an insurance producer.
2. 1. The insurance agency or business entity shall register the name of every natural person who, as a member, officer, director, stockholder, owner, or employee of the agency or business entity, is acting as and is licensed as an insurance producer.
   2. A fee, prescribed by the commissioner in accordance with section 10-2-413, shall be paid for the registration of each insurance producer.
3. The insurance agency or business entity shall, within ten days, notify the commissioner, on a form prescribed by the commissioner, of every change relative to the licensed individual insurance producers registered and authorized to act as insurance producers for the insurance agency or business entity.
4. The insurance agency or business entity shall, within ten days, notify the commissioner, on a form prescribed by the commissioner, of any change relative to the insurance agency or business entity name, officers, directors, partners, or owners, to report a merger, or that the insurance agency or business entity has ceased doing business in this state.
5. When an insurance agency or business entity ceases to do business in this state, the insurance agency or business entity shall return the producer license to the commissioner within ten days after ceasing to do business.
6. When an insurance agency or business entity changes its principal address to another state, the insurance agency or business entity shall, within ten days, notify the commissioner and return the producer license for cancellation. Relicensing will be subject to the provisions of part 5 of this article.
7. 1. The insurance agency or business entity shall comply with section 10-2-404.
   2. A nonresident insurance agency shall also comply with the qualification requirements of section 10-2-501.

Source: L. 93: Entire article R&RE, p. 1359, § 1, effective January 1, 1995. L. 2001: (1), (2)(a), (3), (4), (5), (6), and (7)(a) amended, p. 1198, § 13, effective January 1, 2002.

10-2-407. License - definitions of lines of insurance - authority.

1. Unless a person is denied licensure pursuant to section 10-2-801, the division shall issue to a person who has met the requirements of sections 10-2-401 and 10-2-404 an insurance producer license. An insurance producer may receive qualification for a single license to include one or more of the following lines of authority:
   1. "Life", which means insurance coverage on human lives that:
      1. Shall include benefits of endowment and annuities; and
      2. May include benefits for:
         1. The event of death or dismemberment by accident; and
         2. Disability income;
   2. "Accident and health", which means insurance coverage for sickness, bodily injury, or accidental death and that may include benefits for disability income;
   3. "Variable life and variable annuity products", which means insurance coverage provided under variable life insurance contracts and variable annuities;
   4. "Property", which means insurance coverage for the direct or consequential loss or damage to property of every kind;
   5. "Casualty", which means insurance coverage against legal liability, including that for death, injury, or disability or damage to real or personal property;
   6. Repealed.
   7. Limited lines credit insurance;
   8. Crop hail;
   9. Title;
   10. Surplus lines;
   11. Travel insurance, as defined in section 10-2-414.5;
   12. Health maintenance organizations ("HMO"); except that no person shall be issued a new license for this individual line of authority on or after January 1, 2002, pursuant to section 10-2-402;
   13. Nonprofits; except that no person shall be issued a new license for this individual line of authority on or after January 1, 2002, pursuant to section 10-2-402;
   14. "Personal lines", which means property and casualty insurance sold to individuals and families for primarily noncommercial purposes; or
   15. Any other line of insurance permitted under state law or regulation.
2. (Deleted by amendment, L. 2001, p. 1199 , § 14, effective January 1, 2002.)
3. An insurance producer license for surplus lines may be issued to resident persons pursuant to article 5 of this title.

Source: L. 93: Entire article R&RE, p. 1360, § 1, effective January 1, 1995. L. 99: (1)(f) amended, p. 988, § 6, effective January 1, 2000. L. 2001: IP(1), (1)(a), (1)(b), (1)(c), (1)(d), (1)(e), (1)(g), (1)(h), (1)(l), (1)(m), and (2) amended and (1)(n) and (1)(o) added, p. 1199, § 14, effective January 1, 2002. L. 2008: (1)(h) amended, p. 209, § 3, effective March 26. L. 2012: IP(1) amended and (1)(f) repealed, (HB 12-1266), ch. 280, p. 1494, § 9, effective July 1. L. 2014: (1)(k) amended, (HB 14-1185), ch. 202, p. 734, § 1, effective August 6.

Editor's note: This section is similar to former §§ 10-2-104, 10-2-111, 10-2-204, and 10-2-207 as they existed prior to 1993.

10-2-408. License - contents - continuation due date.

1. The commissioner shall issue a perpetual insurance producer license to an applicant who has met the requirements of section 10-2-404.
2. The license shall state the name, address, and personal identification number of the licensee, the date of issuance, general conditions relative to expiration or cancellation, the line or lines of insurance covered by the license, and any other information the commissioner deems proper or necessary.
3. The license issued to an individual, as a sole proprietor, shall include the trade name under which the licensee acts in the solicitation or negotiation of insurance contracts.
4. Subject to continuation, each insurance producer license shall remain in effect unless revoked or suspended as long as the continuation fee as prescribed by the commissioner in accordance with section 10-2-413 is paid and education requirements are met on or before the due date.
5. The commissioner shall establish, by rule, the continuation due date and application procedures for continuation of the license and for the acceptance of a late filing fee.
6. Any person who holds either a Colorado insurance producer license, a resident surplus lines license, or the equivalent issued by another state or territory that offers Colorado surplus lines producers' nonresident licenses on a reciprocal basis and is deemed by the commissioner to be competent and trustworthy may be licensed as a surplus line producer upon the condition that the producer shall conduct business under the license in accordance with the provisions of this article and shall promptly remit the taxes provided by section 10-5-111.
7. A licensed insurance producer who fails to comply with license continuation or renewal procedures due to military service, long-term medical disability, or any other condition the commissioner deems appropriate, may request a waiver of those procedures. The producer may also request a waiver of any examination requirement or any other fine or sanction imposed for failure to comply with continuation or renewal procedures.

Source: L. 93: Entire article R&RE, p. 1361, § 1, effective January 1, 1995. L. 95: (6) amended, p. 489, § 1, effective May 16. L. 2001: (6) amended and (7) added, p. 1200, § 15, effective January 1, 2002.

Editor's note: This section is similar to former §§ 10-2-104, 10-2-111, and 10-2-207 as they existed prior to 1993.

10-2-409. License - amendment - reissuance.

1. An insurance producer licensee shall promptly notify the commissioner, on a form prescribed by the commissioner, of any change that will require amending a license to reflect that change, including without limitation a legal change of the licensee's name, a change of address, or change or removal of a trade name. The commissioner may require the licensee to furnish any documents necessary to verify any change and to properly amend the license.
2. Repealed.

Source: L. 93: Entire article R&RE, p. 1362, § 1, effective January 1, 1995. L. 2001: (2) repealed, p. 1201, § 16, effective January 1, 2002.

10-2-410. Temporary licensing.

1. The commissioner may issue a temporary license to an individual to act as an insurance producer for a period not to exceed one hundred eighty days, without requiring an examination, if the commissioner deems that such temporary license authority is necessary for the servicing of an insurance business in the following cases:
   1. To the surviving spouse or next of kin, or to the executor or an employee, of a licensed insurance producer who becomes deceased;
   2. To the surviving spouse or next of kin, or to an employee or the legal guardian, of a licensed insurance producer who becomes disabled;
   3. To a member, employee, or officer of a licensed insurance agency or business entity, licensed as an insurance producer upon the death or disability of an individual designated in or registered as to the agency or business entity license;
   4. To the designee of a licensed insurance producer upon entering active service in the armed forces of the United States;
   5. To any person in any other circumstance where the commissioner deems that the public interest will best be served by the issuance of such license.
2. The commissioner may, by order, limit the authority of any temporary licensee in any way deemed necessary to protect insureds and the public. The commissioner may require the temporary licensee to have a suitable sponsor who is a licensed producer or insurer and who assumes responsibility for all acts of the temporary licensee. The commissioner may impose other requirements designed to protect insureds and the public. The commissioner may, by order, revoke a temporary license if the interest of insureds or the public are endangered. A temporary license may not continue after the owner or the personal representative disposes of the business.

Source: L. 93: Entire article R&RE, p. 1362, § 1, effective January 1, 1995. L. 2001: IP(1) and (1)(c) amended and (2) added, p. 1201, § 17, effective January 1, 2002.

Editor's note: This section is similar to former § 10-2-219 as it existed prior to 1993.

10-2-411. Duplicate license.

The commissioner may issue a duplicate license to any actively licensed insurance producer if such producer's license is lost, stolen, or destroyed upon an affidavit by the producer in a form prescribed and furnished by the commissioner concerning the facts of such loss, theft, or destruction.

Source: L. 93: Entire article R&RE, p. 1362, § 1, effective January 1, 1995. L. 2001: Entire section amended, p. 1202, § 18, effective January 1, 2002.

10-2-412. Change of address - notification.

1. Individual and insurance agency producer licensees shall inform the commissioner in writing, in a form prescribed by the commissioner, of any change of address within thirty days after the change.
2. Failure of any licensee to inform the commissioner of any change to the licensee's address of record or residence address shall be grounds for the assessment of a penalty.

Source: L. 93: Entire article R&RE, p. 1362, § 1, effective January 1, 1995. L. 2001: Entire section amended, p. 1202, § 19, effective January 1, 2002.

10-2-413. Fees.

1. The commissioner shall, by rule, set reasonable fees and penalties for the following:
   1. Insurance producer license; and
   2. Continuation of license.
2. All fees payable to the commissioner pursuant to this section shall be nonrefundable. Fees shall be set at the levels necessary to ensure that revenues from such fees, together with revenues from all other fees and taxes collected by the division of insurance in any fiscal year, do not exceed the division's actual direct and indirect costs of operation for that year.

Source: L. 93: Entire article R&RE, p. 1363, § 1, effective January 1, 1995. L. 95: (1)(t) and (1)(u) added, p. 90, § 4, effective March 30. L. 99: (1)(o), (1)(p), and (1)(r) repealed, p. 663, § 1, effective January 1, 2000. L. 2001: (1) amended, p. 1202, § 20, effective January 1, 2002.

Editor's note: This section is similar to former §§ 10-2-110 and 10-2-207 as they existed prior to 1993.

10-2-414. Additional lines of authority - application for license.

An insurance producer licensee requesting licensure for any additional line or lines of authority shall comply with the requirements of section 10-2-404. Upon receipt of the application filing, any supporting documents as required by section 10-2-404, and the applicable fee, the commissioner may issue a replacement license to include the additional lines.

Source: L. 93: Entire article R&RE, p. 1364, § 1, effective January 1, 1995. L. 2001: Entire section amended, p. 1203, § 21, effective January 1, 2002.

Editor's note: This section is similar to former § 10-2-208 as it existed prior to 1993.

10-2-414.5. Travel insurance - limited lines license - travel insurance producers - definitions.

1. As used in this section:
   1. "Limited lines travel insurance producer" means a licensed insurance producer, including a limited lines producer, who is designated by an insurer as the travel insurance supervising entity.
   2. "Offer and disseminate" means to provide general information about travel insurance, including a description of the coverage and price, as well as processing the application, collecting premiums, and performing other nonlicensable activities permitted by the state.
   3. "Travel insurance" means insurance coverage for personal risks incident to planned travel, including: Interruption or cancellation of a trip or event; loss of baggage or personal effects; damages to accommodations or rental vehicles; or sickness, accident, disability, or death occurring during travel. "Travel insurance" does not include major medical plans that provide comprehensive medical protection for travelers with trips lasting six months or longer, including those working overseas as an expatriate or military personnel being deployed.
   4. "Travel retailer" means a business entity that makes, arranges, or offers travel services and may offer and disseminate travel insurance as a service to its customers on behalf of and under the direction of a limited lines travel insurance producer. For the purposes of this definition, the term "business entity" may include any individual working for or acting on behalf of the travel retailer.
2. 1. The commissioner may issue a limited lines travel insurance producer license to an individual or business entity that authorizes the limited lines travel insurance producer to sell, solicit, or negotiate travel insurance through a licensed insurer in a form and manner prescribed by the commissioner.
   2. A travel retailer may offer and disseminate travel insurance as a service to its customers, on behalf of and under the direction of a business entity that holds a limited lines travel insurance producer license. In doing so, the travel retailer must provide to prospective purchasers of travel insurance:
      1. A description of the material terms or the actual material terms of the insurance coverage;
      2. A description of the process for filing a claim;
      3. A description of the review or cancellation process for the travel insurance policy; and
      4. The identity and contact information of the insurer and limited lines producer.
   3. At the time of licensure, the limited lines travel insurance producer shall establish and maintain a register of each travel retailer that offers travel insurance on the limited lines producer's behalf on a form prescribed by the commissioner. The limited lines travel insurance producer must maintain and update the register annually and include: The name, address, and contact information of each travel retailer; the name, address, and contact information of an officer or person who directs or controls the travel retailer's operations; and the travel retailer's federal tax identification number. The limited lines travel insurance producer must submit the register to the commissioner upon request. The limited lines travel insurance producer must also certify that the travel retailer registered is not in violation of 18 U.S.C. sec. 1033.
   4. The limited lines travel insurance producer must designate one of its employees who is a licensed individual producer as the person responsible for the limited lines travel insurance producer's compliance with the travel insurance laws and rules of the state.
   5. The limited lines travel insurance producer shall require each employee and authorized representative of the travel retailer whose duties include offering and disseminating travel insurance to receive a program of instruction or training, which may be subject to review by the commissioner. The training material must include, at minimum, instructions on the types of insurance offered, ethical sales practices, and required disclosures to prospective customers.
3. A limited lines travel insurance producer and those registered under its license are exempt from the prelicensure educational requirements in section 10-2-201, continuing education requirements in section 10-2-301, and examination and continuing education requirements in section 10-2-403.
4. Any travel retailer offering or disseminating travel insurance shall make brochures or other written materials available to prospective purchasers that:
   1. Provide the identity and contact information of the insurer and the limited lines travel insurance producer;
   2. Explain that the purchase of travel insurance is not required in order to purchase any other product or service from the travel retailer; and
   3. Explain that an unlicensed travel retailer is permitted to provide general information about the insurance offered by the travel retailer, including a description of the coverage and price, but is not qualified or authorized to answer technical questions about the terms and conditions of the insurance offered by the travel retailer or to evaluate the adequacy of the customer's existing insurance coverage.
5. A travel retailer's employee or authorized representative who is not licensed as an insurance producer may not:
   1. Evaluate or interpret the technical terms, benefits, or conditions of the offered travel insurance coverage;
   2. Evaluate or provide advice concerning a prospective purchaser's existing insurance coverage; or
   3. Hold himself or herself out as a licensed insurer, licensed producer, or insurance expert.
6. A travel retailer whose insurance-related activities, and those of its employees and authorized representatives, are limited to offering and disseminating travel insurance on behalf of and under the direction of a limited lines travel insurance producer meeting the conditions stated in this section is authorized to receive related compensation for the services upon registration by the limited lines travel insurance producer.
7. Travel insurance may be provided under an individual policy or under a group or master policy.
8. The limited lines travel insurance producer is responsible for the acts of the travel retailer and shall use reasonable means to ensure that the travel retailer complies with this section.
9. The commissioner may take disciplinary action against a limited lines travel insurance producer pursuant to section 10-2-801.

Source: L. 2014: Entire section added, (HB 14-1185), ch. 202, p. 734, § 2, effective August 6.

10-2-415. Appointment of insurance producer by insurer - continuation - exceptions. (Repealed)

Source: L. 93: Entire article R&RE, p. 1364, § 1, effective January 1, 1995. L. 99: Entire section repealed, p. 663, § 2, effective January 1, 2000.

10-2-415.5. Appointment of insurance producer - continuation - renewal - exceptions.

1. No insurance producer shall claim to be a representative or authorized or appointed agent of, or use any other term implying a contractual relationship with, a particular bail insurance company or accept applications on behalf of the bail insurance company unless the insurance producer becomes through a written contract a producer appointee, appointed by that bail insurance company in accordance with this section, to act in the capacity of an agent of the bail insurance company.
2. 1. A bail insurance company shall notify the commissioner of each insurance producer appointment. Each bail insurance company shall file with the commissioner, monthly or at such other less frequent intervals as the commissioner may prescribe, a current list of insurance producers that it has appointed to solicit business on its behalf. The list shall contain all relevant appointment information as prescribed by the commissioner, including the effective date of appointment.
   2. Subject to renewal, each insurance producer appointment shall remain in effect until:
      1. The insurance producer's license is allowed to expire, discontinued, or canceled by the insurance producer or revoked by the commissioner; or
      2. Notice of termination of the appointment is filed with the commissioner by the insurer.
   3. 1. A bail insurance company shall not appoint an insurance producer to act as its agent to write bail bonds unless the agent is licensed as an insurance producer authorized to write bail bonds and has completed the prelicensure education required by this paragraph (c) and submitted to the bail insurance company evidence of satisfactory completion of the education. The education must be approved by the division and consist of at least:
         1. Eight clock hours regarding bail bonding, two of which concern the criminal court system, two of which concern bail bond industry ethics, and four of which concern the bail bond laws; and
         2. Sixteen clock hours of training in bail recovery practices that complies with standards established by the peace officers standards and training board under section 24-31-303 (1)(h), C.R.S.
      2. This paragraph (c) does not apply to a person who has successfully completed the required prelicensure training pursuant to section 12-7-102.5, C.R.S., as it existed prior to July 1, 2012.
      3. A bail insurance company failing to comply with this paragraph (c) is subject to discipline under section 10-1-110 or the assessment of a penalty.
3. Each active insurance producer appointment shall be subject to renewal on October 1 of the renewal year. The division shall provide a list of active insurance producer appointees to the bail insurance company along with a renewal invoice stating the fee required for the renewal of each active insurance producer appointment.
4. Any appointment that is not renewed on or before October 1 shall be deemed to have expired or been discontinued, effective on that date; except that the commissioner may renew an insurer's appointment upon receipt of the renewal invoice together with the renewal fees due and any applicable late fee.

Source: L. 2004: Entire section added, p. 1749, § 1, effective July 1. L. 2012: (1), (2)(a), IP(2)(b), (2)(b)(I), and (3) amended and (2)(c) added, (HB 12-1266), ch. 280, p. 1494, § 10, effective July 1.

10-2-415.6. Bail bond reports required - repeal. (Repealed)

Source: L. 2012: Entire section added, (HB 12-1266), ch. 280, p. 1496, § 11, effective July 1.

Editor's note: Subsection (4) provided for the repeal of this section, effective July 1, 2015. (See L. 2012, p. 1496 .)

10-2-415.7. Termination of insurance producer bail bonding agent - notice - penalty.

1. Upon the termination of the appointment of an insurance producer bail bonding agent, the insurer shall, within fifteen days, notify the commissioner and the appointee of such termination by certified mail.
2. If the termination of an agent's appointment is for any of the causes listed in section 10-1-128 or 10-2-801, the insurer shall notify the commissioner of the reason and, if the commissioner so requests, the insurer shall provide any information, records, statements, or other data pertaining to the termination that may be used by the division in any action taken under section 10-2-801.
3. Any information, documents, records, or statements provided pursuant to this section shall be privileged, and there shall be no liability on the part of, nor shall a cause of action of any nature arise against, the division, the insurance company, or any authorized representative for requesting or providing such information, documents, records, or statements; except that such information may be used by the division to pursue administrative or criminal prosecutions.
4. In addition to any other penalty or liability authorized by law, the failure or refusal of any insurer to comply with the requirements of subsection (1) or (2) of this section shall be cause for the assessment against the insurer of a civil penalty of up to one thousand dollars for each such failure or refusal if, after notice to the insurer and after a hearing in accordance with section 24-4-105, C.R.S., the commissioner finds that the insurer has violated this section.

Source: L. 2004: Entire section added, p. 1749, § 1, effective July 1. L. 2012: (2) amended, (HB 12-1266), ch. 280, p. 1497, § 12, effective July 1.

10-2-416. Notification to the commissioner of termination.

1. Termination for cause. An insurer or authorized representative of the insurer that terminates employment, a contract, or other insurance business relationship with a producer shall notify the commissioner within thirty days following the effective date of the termination, using a format prescribed by the commissioner, if the reason for termination is one of the reasons set forth in this article and article 3 of this title, or the insurer has knowledge the producer was found by a court, government body, or self-regulatory organization authorized by law to have engaged in any of the activities in this article and article 3 of this title. Upon the written request of the commissioner, the insurer shall provide additional information, documents, records, or other data pertaining to the termination or activity of the producer.
2. Ongoing notification requirement. The insurer or the authorized representative of the insurer shall promptly notify the commissioner, in a format prescribed by the commissioner, if, upon further review or investigation, the insurer discovers additional information that would have been reportable to the commissioner pursuant to subsection (1) of this section had the insurer known of its existence.
3. Copy of notification to be provided to producer. A copy of the notification pursuant to this subsection (3) shall be provided to the producer pursuant to the following requirements:
   1. Within fifteen days after making the notification required by subsections (1) and (2) of this section, the insurer shall mail a copy of the notification to the producer at the producer's last-known address. If the producer is terminated for cause as listed in section 10-2-801, the insurer shall provide a copy of the notification to the producer at the producer's last-known address by certified mail, return receipt requested and postage prepaid, or by overnight delivery using a nationally recognized carrier.
   2. Within thirty days after the producer has received the original or additional notification, the producer may file written comments concerning the substance of the notification with the commissioner. The producer shall, by the same means, simultaneously send a copy of the comments to the reporting insurer, and the comments shall become a part of the commissioner's file and accompany every copy of a report distributed or disclosed for any reason about the producer as permitted under subsection (5) of this section.
4. Immunities.
   1. In the absence of wilful and wanton behavior, an insurer, the authorized representative of the insurer, a producer, the commissioner, or an organization of which the commissioner is a member and that compiles the information and makes it available to other commissioners or regulatory or law enforcement agencies shall not be subject to civil liability, and a civil cause of action of any nature shall not arise against these entities or their respective agents or employees, as a result of any statement or information required by or provided pursuant to this section or any information relating to any statement that may be requested in writing by the commissioner, from an insurer or producer or a statement by a terminating insurer or producer to an insurer or producer limited solely and exclusively to whether a termination for cause under this paragraph (a) was reported to the commissioner, if the propriety of any termination for cause under subsection (1) of this section is certified in writing by an officer or authorized representative of the insurer or producer terminating the relationship.
   2. Paragraph (a) of this subsection (4) shall not abrogate or modify any existing statutory or common law privileges or immunities.
5. Confidentiality.
   1. 1. Except as provided in paragraph (e) of this subsection (5), any documents, materials, or other information in the control or possession of the division of insurance that is furnished by an insurer, producer, or employee or agent thereof acting on behalf of the insurer or producer, or obtained by the commissioner in an investigation pursuant to this section, shall not be subject to article 72 of title 24, C.R.S.
      2. The commissioner is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the commissioner's duties.
   2. Neither the commissioner nor any person who received documents, materials, or other information while acting under the authority of the commissioner shall be required to testify in any private civil action concerning any confidential documents, materials, or information subject to paragraph (a) of this subsection (5).
   3. In order to assist in the performance of the commissioner's duties under this article, the commissioner, if the recipient agrees to maintain the confidentiality and privileged status of the document, material, or other information, and has the authority to do so, may:
      1. Share documents, materials, or other information, including the documents, materials, or information subject to paragraph (a) of this subsection (5), with any of the following:
         1. Other state, federal, and international regulatory agencies;
         2. The national association of insurance commissioners or its affiliates or subsidiaries; and
         3. State, federal, and international law enforcement authorities.
      2. Receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information, from the national association of insurance commissioners, its affiliates or subsidiaries, and regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material, or information received with the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information; and
      3. Enter into agreements governing sharing and use of information consistent with this subsection (5).
   4. No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information shall occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized in paragraph (c) of this subsection (5).
   5. Nothing in this article shall preclude the commissioner or the commissioner's designee from releasing final disciplinary actions or closed files, including those portions of the record pertaining to for cause terminations that shall be open to public inspection pursuant to article 72 of title 24, C.R.S., and to a database or other clearinghouse service maintained by the national association of insurance commissioners or its affiliates or subsidiaries.
   6. Nothing in this article shall preclude the commissioner or the commissioner's designee from disclosing any information obtained pursuant to the provisions of this article to any state, federal, or international law enforcement agency for use in any criminal or civil investigation or prosecution, nor shall any such information be considered privileged and confidential in any criminal or civil matter, investigation, or prosecution by a government agency, except as provided in part 3 of article 72 of title 24, C.R.S.
   7. Nothing in this article shall preclude the commissioner or the commissioner's designee from disclosing any information obtained or developed pursuant to the provisions of this article for use in any private civil matter, nor shall any such information be considered privileged or confidential, except as provided in part 3 of article 72 of title 24, C.R.S. Any party in interest may request the commissioner or the commissioner's designee to find that disclosure of such information in any private civil matter shall cause substantial injury to the public interest. If the commissioner finds that disclosure shall cause substantial injury to the public interest, the commissioner or the commissioner's designee may apply to the district court for an order permitting restrictions on disclosure as authorized by section 24-72-204 (6), C.R.S.
6. Penalties for failing to report. An insurer, the authorized representative of the insurer, or producer that fails to report as required under the provisions of this section or that is found to have reported with actual malice by a court of competent jurisdiction, may, after notice and hearing, have the producer's license or insurer's certificate of authority suspended or revoked and may be fined in accordance with sections 10-2-804 (4) and 10-3-1108.

Source: L. 93: Entire article R&RE, p. 1365, § 1, effective January 1, 1995. L. 96: (2) amended, p. 289, § 3, effective July 1. L. 99: Entire section repealed, p. 663, § 2, effective January 1, 2000. L. 2001: Entire section RC&RE, p. 1203, § 22, effective January 1, 2002.

Editor's note: This section is similar to former § 10-2-216 as it existed prior to 1993.

10-2-416.5. Required availability to commissioner of list of producer appointees for enforcement purposes.

Each insurer shall maintain a current list of producers contractually authorized to accept applications on behalf of the insurer. Each insurer shall make such list available to the commissioner upon reasonable request for purposes of conducting investigations and enforcing the provisions of this title.

Source: L. 99: Entire section added, p. 663, § 3, effective January 1, 2000.

10-2-417. Public insurance adjusters - license required - financial responsibility - standards of conduct - rules.

1. 1. A person shall not act or hold himself or herself out as a public adjuster in this state unless the person is licensed as a public adjuster in accordance with this article. No person who, on or before January 1, 2014, holds a license as a public adjuster previously issued under the laws of this state is required to secure an additional license under this article, but is otherwise subject to this article including complying with the financial responsibility requirements of subsection (2) of this section. The previously issued license is, for all purposes, considered a license issued under this article.
   2. A person licensed as a public adjuster shall not misrepresent to an insured that he or she is an adjuster representing an insurer in any capacity, including acting as an employee of the insurer or acting as an independent adjuster, unless so appointed by an insurer in writing to act on the insurer's behalf for that specific claim or purpose. A licensed public adjuster is prohibited from charging an insured a fee if the public adjuster accepts an appointment by the insurer.
   3. A business entity acting as a public adjuster is required to obtain a public adjuster license. Application shall be made in the form required by the commissioner. Before approving the application, the insurance commissioner shall find that:
      1. The business entity has paid the fees set by the commissioner; and
      2. The business entity has designated a licensed public adjuster responsible for the business entity's compliance with the insurance laws and rules of this state.
      3. Must not be terminated unless at least thirty days' prior written notice is filed with the commissioner and given to the licensee.
2. 1. Before receiving a license as a public adjuster and for the duration of the license, the applicant shall secure evidence of financial responsibility in a format prescribed by the commissioner through a surety bond executed and issued by an insurer authorized to issue surety bonds in this state, which bond:

      (I) Must be in the minimum amount of twenty thousand dollars;

      (II) Must be in favor of this state and must specifically authorize recovery by the commissioner on behalf of any person in this state who sustained damages as the result of the applicant's erroneous acts, failure to act, conviction of fraud, or conviction of unfair practices in his or her capacity as a public adjuster; and

   2. The issuer of the evidence of financial responsibility shall notify the commissioner upon termination of the bond, unless otherwise directed by the commissioner.
   3. The commissioner may ask for the evidence of financial responsibility at any time the commissioner deems relevant.
   4. The commissioner shall summarily suspend the authority to act as a public adjuster if the evidence of financial responsibility terminates or becomes impaired.
3. A public adjuster shall not pay a commission, service fee, or other valuable consideration to a person for investigating or settling claims in this state if that person is required to be licensed under this article and is not licensed.
4. In the event of a catastrophic disaster, no public adjuster shall charge, agree to, or accept as compensation or reimbursement any payment, commission, fee, or other thing of value in excess of ten percent of any insurance settlement or proceeds. No public adjuster shall require, demand, or accept any fee, retainer, compensation, deposit, or other thing of value prior to settlement of a claim.
5. A public adjuster who receives, accepts, or holds any funds on behalf of an insured towards the settlement of a claim for loss or damage shall deposit the funds in a noninterest-bearing escrow or trust account in a financial institution that is insured by an agency of the federal government in the public adjuster's home state or where the loss occurred.
6. 1. A public adjuster is obligated, under his or her license, to serve with objectivity and loyalty the interest of his or her client alone and to render to the insured such information, counsel, and service, within the knowledge, understanding, and opinion in good faith of the licensee, as will best serve the insured's insurance claim needs and interests.
   2. A public adjuster shall not solicit, or attempt to solicit, an insured during the progress of a loss-producing occurrence, as defined in the insured's insurance contract.
   3. A public adjuster shall not permit an unlicensed employee or representative of the public adjuster to conduct business for which a license is required under this article.
   4. A public adjuster shall not have a direct or indirect financial interest in any aspect of the claim, other than the salary, fee, commission, or other consideration established in the written contract with the insured.
   5. A public adjuster shall not acquire any interest in salvage of property subject to the contract with the insured unless the public adjuster obtains written permission from the insured after settlement of the claim with the insurer.
   6. A public adjuster shall not refer or direct the insured to get needed repairs or services in connection with a loss from any person:
      1. With whom the public adjuster has a financial interest; or
      2. From whom the public adjuster may receive direct or indirect compensation for the referral.
   7. A public adjuster shall not participate directly or indirectly in the reconstruction, repair, or restoration of damaged property that is the subject of a claim adjusted by the public adjuster.
   8. A public adjuster shall not engage in any other activities that may reasonably be construed as presenting a conflict of interest, including soliciting or accepting any remuneration from, or having a financial interest in, any salvage firm, repair firm, or other firm that obtains business in connection with any claim the public adjuster has a contract or agreement to adjust.
   9. Public adjusters shall adhere to the following general ethical requirements:
      1. A public adjuster shall not undertake the adjustment of a claim if the public adjuster is not competent and knowledgeable as to the terms and conditions of the insurance coverage or if the adjustment of the claim otherwise exceeds the public adjuster's expertise.
      2. A public adjuster shall not knowingly make any oral or written material misrepresentations or statements which are false and intended to injure any person engaged in the business of insurance to any insured client or potential insured client.
      3. A public adjuster, while licensed in this state, shall not represent or act as a company adjuster or independent adjuster on the same claim.
      4. 1. The insured may rescind any contract or other form of agreement for representation in a property or casualty loss or claim if the insured exercises this right of rescission in writing addressed to the insurer and the public adjuster and puts the written rescission, postage prepaid, in the United States mail within seventy-two hours after signing a settlement representation agreement. All public adjusters taking a representative agreement to resolve a property or casualty loss or claim on behalf of an insured shall give to the insured written notice of, and direction as to, the ability to exercise the insured's right of rescission.
         2. A public adjuster shall not enter into a contract that prevents an insured from pursuing any civil remedy after the required rescission period under sub-subparagraph (A) of this subparagraph (IV).
      5. A public adjuster shall not enter into a contract or accept a power of attorney that vests in the public adjuster the effective authority to choose the persons who perform repair work.
      6. A public adjuster shall ensure that all contracts for the public adjuster's services are in writing and set forth all terms and conditions of the engagement.
   10. A public adjuster shall not agree to any loss settlement without the insured's knowledge and consent.
7. The commissioner may promulgate rules as necessary to carry out this section, including:
   1. Requirements and standards for written contracts between public adjusters and insureds; and
   2. The required retention of records by public adjusters.

Source: L. 95: Entire section added, p. 90, § 5, effective March 30. L. 2013: Entire section amended, (HB 13-1062), ch. 61, p. 202, § 4, effective January 1, 2014.

10-2-418. Bail bonding authority.

1. The division shall advise state court administrators that a person may furnish a bail bond if the person is a licensed insurance producer with a power of attorney from an insurance company, appears on the division's website as an active insurance producer with casualty authority, and is appointed by that insurance company.
2. The division shall issue credentials to each insurance producer who is appointed by a bail insurance company that clearly identifies the person as holding authority to act as a bail bond agent.

Source: L. 2012: Entire section added, (HB 12-1266), ch. 280, p. 1497, § 13, effective July 1.

10-2-501. Reciprocity.

1. The commissioner shall waive any requirements for a nonresident license applicant with a valid license from the applicant's home state, except those requirements imposed by section 10-2-502, if the applicant's home state awards nonresident licenses to residents of this state on the same basis.
2. A nonresident producer's satisfaction of a nonproducer's home state's continuing education requirements for licensed insurance producers shall constitute satisfaction of this state's continuing education requirements if the nonresident producer's home state recognizes the satisfaction of its continuing education requirements imposed upon producers from this state on the same basis.

Source: L. 93: Entire article R&RE, p. 1366, § 1, effective January 1, 1995. L. 2001: Entire section R&RE, p. 1206, § 23, effective January 1, 2002.

10-2-502. Nonresident licensing - qualification.

1. The commissioner may qualify an applicant as a nonresident, unless the applicant is denied licensure pursuant to section 10-2-801, and shall issue an insurance producer license to any qualified nonresident person in accordance with the following:
   1. The person maintains a license in good standing in the person's home state;
   2. An insurance agency or business entity may qualify as a nonresident if the agency or business entity has its principal office located in another state;
   3. The nonresident person holds a similar license that is awarded on the same basis in the nonresident's home state and for the same line or lines of authority applied for in this state;
   4. The person has submitted the proper request for licensure and has paid the fees set forth by regulation;
   5. The nonresident person has filed with the commissioner a current certification of license status for the purposes set forth in section 10-2-501;
   6. The person has submitted or transmitted to the insurance commissioner the application for licensure that the person submitted to his or her home state, or in lieu of the application, a completed uniform application.
2. The commissioner may verify the producer's licensing status through the producer database maintained by the national association of insurance commissioners or its affiliates or subsidiaries.
3. A license issued to a nonresident person shall confer the same rights and privileges as those afforded a resident licensee.

   (3.5) A nonresident producer who moves from one state to another state or a resident producer who moves from this state to another state shall file a change of address and provide certification from the new resident state within thirty days after the change of legal residence. No fee or license application is required.

4. If the insurance department of the nonresident insurance producer's resident state suspends, terminates, or revokes the producer's insurance license in that state, the nonresident insurance producer shall notify the commissioner and shall return the Colorado nonresident license pursuant to section 10-2-804.
5. Notwithstanding any other provision of this article, a person licensed as a surplus lines producer in the surplus lines producer's home state shall receive a nonresident surplus lines producer license pursuant to subsection (1) of this section; except that nothing in this section otherwise amends or supercedes any provision of this part 5.
6. Notwithstanding any other provision of this article, a person licensed as a limited lines credit insurance or other type of limited line producer in the limited line producer's home state shall receive a nonresident limited line producer license, pursuant to subsection (1) of this section, granting the same scope of authority granted under the license issued by the producer's home state. For the purposes of this subsection (6), limited lines insurance is any authority granted by the home state which restricts the authority of the license to less than the total authority prescribed in the associated major lines pursuant to section 10-2-407.

Source: L. 93: Entire article R&RE, p. 1366, § 1, effective January 1, 1995. L. 2001: (1), (2), and (3) amended and (3.5), (5), and (6) added, p. 1206, § 24, effective January 1, 2002. L. 2012: IP(1) amended, (HB 12-1266), ch. 280, p. 1497, § 14, effective July 1.

10-2-503. Commissioner as agent for service of process.

1. By the filing of the application and issuance of a nonresident insurance producer license, a nonresident insurance producer licensee shall be deemed to have appointed the commissioner and successors in office as said nonresident's agent upon whom all lawful process in any legal proceeding against the nonresident may be served and to have agreed that any such lawful process has the same legal force and validity as personal service of process upon such nonresident.
2. The commissioner shall, within ten working days after receiving three copies of the process served, forward a copy of such process by registered or certified mail to the person for whom the commissioner has received such process at the nonresident individual's address of record, or, if the nonresident is an insurance agency, at the agency's principal place of business. The commissioner shall keep a record of all process so served.
3. Service of process upon any such licensee in any action or proceeding instituted by the commissioner under this section shall be made by the commissioner by mailing such process by registered mail to an individual licensee at the licensee's last known address of record or to an insurance agency licensee at its principal place of business.

Source: L. 93: Entire article R&RE, p. 1367, § 1, effective January 1, 1995. L. 98: (2) amended, p. 1325, § 25, effective June 1. L. 2001: (2) amended, p. 1208, § 25, effective January 1, 2002.

10-2-601. Financial institutions may sell insurance - where - regulation.

1. For the purposes of this part 6:
   2. (Deleted by amendment, L. 97, p. 426 , § 1, effective April 24, 1997.)
   3. "Credit insurance" has the same meaning as set forth in section 10-10-103 (2) .
   4. "Credit life insurance" means insurance on the life of a debtor pursuant to or in connection with a specific loan or other credit transaction.
   5. "Financial institution" means a state bank, including a bank and trust company chartered by a state, a trust company, a savings and loan association, a credit union, or a national bank and the financial institution is located in this state. "Financial institution" includes federally chartered savings and loan associations and credit unions located in this state.
2. No financial institution or employee thereof shall be licensed or admitted, directly or indirectly, to sell insurance in this state; except that:
   1. A financial institution or employee thereof may engage in the activities of an insurance producer, an insurance agency, or a business entity in this state and shall be licensed pursuant to this article. Such producers, agencies, and business entities shall be subject to the provisions of this title and rules promulgated pursuant thereto.
   2. Unlicensed employees of financial institutions shall not sell insurance or annuities. Such employees may direct customers to licensed persons.
   3. A financial institution, or any subsidiary, affiliate, or employee thereof, may be licensed to sell insurance, credit insurance, and fixed and variable annuity contracts in accordance with regulations promulgated by the commissioner.
   4. Any financial institution, or any subsidiary, affiliate, or employee thereof, may be permitted to own an insurance company authorized to sell, and that insurance company's employees may be licensed to sell, insurance to guarantee the payment of any amounts due in connection with any securities or obligations described in section 11-57-101, C.R.S.; except that no financial institution, or any subsidiary or affiliate subject to the supervision of the banking board created in section 11-102-103, C.R.S., shall own such an insurance company without the consent of the banking board, and no financial institution subject to the supervision of the financial services board created in section 11-44-101.6, C.R.S., shall own such an insurance company without the consent of the financial services board, and no financial institution shall invest more than ten percent of its capital and surplus in such an insurance company.
   5. Any financial institution, or any subsidiary or affiliate thereof, may own, directly or indirectly, a captive insurance company operating under article 6 of this title.
   6. Any trade association organized primarily to promote the common interests of financial institutions, or an affiliate or subsidiary of such association, may hold stock or other interests in an insurance company, or an affiliate or subsidiary thereof.
4. (Deleted by amendment, L. 97, p. 426 , § 1, effective April 24, 1997.)
5. The commissioner shall promulgate such rules as are necessary to implement this part 6.

Source: L. 93: Entire article R&RE, p. 1367, § 1, effective January 1, 1995. L. 94: (2)(a) amended, p. 1353, § 4, effective January 1, 1995. L. 97: IP(1), (1)(a), (1)(b), and (2) to (5) amended and (1)(e) added, p. 426, § 1, effective April 24. L. 99: (1)(e) amended, p. 585, § 1, effective May 17. L. 2001: (2)(a) amended, p. 1208, § 26, effective January 1, 2002. L. 2003: (2)(d) amended, p. 1206, § 4, effective July 1. L. 2013: (1)(e) amended, (SB 13-154), ch. 282, p. 1470, § 27, effective July 1.

Editor's note: This section is similar to former § 10-2-221 as it existed prior to 1993.

10-2-602. Sale of annuities and insurance by financial institutions - certain tying arrangements prohibited.

1. In addition to the requirements of section 10-3-1105, no financial institution, or subsidiary or employee of a financial institution, shall extend credit, lease or sell property of any kind, furnish any service, or fix or vary the consideration for any such extension of credit, lease, sale, or service on the condition or requirement that the customer shall obtain an insurance contract or an annuity from such financial institution or any subsidiary or employee.
2. No financial institution may offer a financial product or service, or fix or vary the conditions of such product or service, conditioned on a requirement that the customer obtain insurance from such financial institution or any specific person.
3. No person shall require or imply that the purchase of an insurance product, or of an annuity from a financial institution, is a condition of the lending of money or extension of credit, maintenance of a trust account, establishment or maintenance of a checking, savings, deposit, or share account, or the provision of products or services related to such activities.

Source: L. 94: Entire section added, p. 1353, § 3, effective January 1, 1995. L. 97: Entire section amended, p. 429, § 2, effective April 24.

10-2-603. Bank sale of annuities - disclosure requirements.

1. Any financial institution, or any subsidiary or employee thereof, which sells a fixed or variable annuity contract shall receive written acknowledgment from the purchaser that the annuity which is being purchased may involve investment risk and is not insured by the federal deposit insurance corporation or the national credit union share insurance fund. Such written notice shall be clear and conspicuous and shall be given before or contemporaneously with the purchase of the annuity. This subsection (1) shall apply to an affiliate or subsidiary of a financial institution if such an affiliate or subsidiary sells insurance on the premises of a financial institution.
2. A clear and conspicuous notice substantially in the following form complies with this section:

Acknowledgment

___________________________________

(Complete name of investment)

I understand that the investment product I am purchasing is not a bank deposit and is not an obligation of, nor is it guaranteed by, any bank. This product is not insured or guaranteed by the federal deposit insurance corporation. In addition, I understand that the investment product purchased may be subject to investment risk, including possible loss of principal, and that any investment product's past performance should not be considered an indication of future results. _________________________ _________________________ (Date) (Signed)

Source: L. 94: Entire section added, p. 1354, § 7, effective July 1, 1995. L. 97: (1) amended, p. 429, § 3, effective April 24.

10-2-604. Disclosures.

1. A financial institution, and any person selling insurance with a cash value or a cash accumulation component on behalf of a financial institution, shall disclose to the financial institution's customers or members, and on any advertisements or promotional material, that insurance offered, recommended, sponsored, or sold by the financial institution, or on the premises of the financial institution:
   1. Is not a deposit;
   2. Is not insured by the federal deposit insurance corporation, the national credit union share insurance fund, or any agency of the state of Colorado or the federal government;
   3. Is not guaranteed by the financial institution or any affiliated insured depository institution;
   4. May involve investment risk, including loss of principal; and
   5. May be purchased from a producer of the customer's choice and that the customer's choice of another insurance provider will not affect the customer's relationship with the financial institution.

Source: L. 97: Entire section added, p. 429, § 4, effective April 24. L. 2001: (1)(e) amended, p. 1208, § 27, effective January 1, 2002.

10-2-605. Misleading advertising.

1. No financial institution, or any subsidiary, affiliate, or employee of a financial institution, may issue advertising that would lead a reasonable person to believe that the state of Colorado or the federal government:
   1. Is responsible for insurance sales activities of the financial institution or any subsidiary, affiliate, or employee thereof;
   2. Guarantees any return on insurance products or is a source of payment of any insurance obligations sold by the financial institution or any subsidiary, affiliate, or employee thereof.

Source: L. 97: Entire section added, p. 430, § 4, effective April 24.

10-2-606. Discrimination against affiliated agents.

1. No financial institution shall:
   1. Require, as a condition of providing or renewing a contract for providing a product or service to any customer, that the customer purchase, finance, or negotiate any policy or contract of insurance through any particular person;
   2. In connection with a loan or extension of credit that requires a borrower to obtain insurance, reject an insurance policy solely because such policy has been issued or underwritten by any person who is not associated with such institution;
   3. Impose any requirement on any insurance producer who is not associated with the financial institution that is not imposed on any insurance producer who is associated with such institution; or
   4. Unless otherwise authorized by applicable federal or state law, require any debtor, insurer, or producer to pay a separate charge in connection with the handling of insurance that is required under a contract.

Source: L. 97: Entire section added, p. 430, § 4, effective April 24. L. 2001: (1)(c) and (1)(d) amended, p. 1209, § 28, effective January 1, 2002.

10-2-607. Location of sales.

To the extent practicable, a financial institution's sale of insurance shall be in a location distinct from a teller window or common teller area. Unlicensed employees of financial institutions shall not sell insurance or annuities. Such employees may direct customers to licensed persons.

Source: L. 97: Entire section added, p. 431, § 4, effective April 24.

10-2-701. Assumed names - registration - rules.

Any insurance producer using an assumed name, including without limitation a trade or fictitious name, under which the insurance producer conducts business shall register the name with the insurance commissioner prior to using the assumed name. The commissioner shall not accept registration of any name that would tend to be misleading to the public or that is identical or similar to the name of any producer whose license has been revoked or suspended. Every insurance producer licensee shall promptly file with the commissioner a written notice of any change in or discontinuation of the use of any name. The commissioner may promulgate all rules necessary and proper to implement the provisions of this section.

Source: L. 93: Entire article R&RE, p. 1370, § 1, effective January 1, 1995. L. 2001: Entire section amended, p. 1209, § 29, effective January 1, 2002. L. 2008: Entire section amended, p. 210, § 4, effective March 26.

10-2-702. Commissions.

1. No insurer or insurance producer shall pay, directly or indirectly, any commission, service fee, brokerage, or other valuable consideration to any person selling, soliciting, or negotiating insurance within this state unless, at the time such services were performed, such person was a duly licensed insurance producer under this article for the performance of such services. In addition, no person, other than a person appropriately licensed by this state as an insurance producer at the time such services were performed, shall accept any such consideration; except that any person duly licensed under this article may pay or assign such person's commissions to, or direct that such person's commissions be paid to, a partnership of which the person is a member, employee, or agent or to a corporation of which the person is an officer, employee, or agent. This section shall not prevent payment or receipt of renewal or other deferred commissions to or by any person entitled thereto under this section.
2. An insurer or insurance producer may pay or assign commissions, service fees, brokerages, or other valuable consideration to an insurance agency, business entity, or persons who do not sell, solicit, or negotiate insurance in this state, unless the payment would violate section 10-3-1104 (1)(g).

Source: L. 93: Entire article R&RE, p. 1370, § 1, effective January 1, 1995. L. 95: Entire section amended, p. 89, § 2, effective March 30. L. 2001: Entire section amended, p. 1209, § 30, effective January 1, 2002. L. 2012: (2) amended, (HB 12-1266), ch. 280, p. 1497, § 15, effective July 1.

10-2-703. Countersignature not required. (Repealed)

Source: L. 93: Entire article R&RE, p. 1370, § 1, effective January 1, 1995. L. 2001: Entire section repealed, p. 1210, § 31, effective January 1, 2002.

10-2-704. Fiduciary responsibilities.

1. 1. All premiums belonging to insurers and all unearned premiums belonging to insureds received by an insurance producer licensee under this article shall be treated by such insurance producer in a fiduciary capacity. The commissioner may promulgate such rules as are necessary and proper relating to the treatment of such premiums.
   2. All premiums received, less commissions if authorized, shall be remitted to the insurer or its agent entitled thereto on or before the contractual due date or, if there is no contractual due date, within forty-five days after receipt.
   3. All returned premiums received from insurers or credited by insurers to the account of the licensee shall be remitted to or credited to the account of the person entitled thereto within thirty days after such receipt or credit.
   4. If any insurance producer has failed to account for any collected premium to the insurer to whom it is owing or to its agent entitled thereto for more than forty-five days after the contractual due date or, if there is no contractual due date, more than ninety days after receipt, the insurer or its agent shall promptly report such failure to the commissioner in writing.
2. Every insurer shall remit unearned premiums to the insured or the proper agent, or shall otherwise credit the account of the proper licensee, as soon as is practicable after entitlement thereto has been established, but in no event more than forty-five days after the effective date of any cancellation or termination effected by the insurer or after the date of entitlement thereto as established by notification of cancellation or of termination or as otherwise established. It shall be the responsibility of any insurance producer having knowledge of a failure on the part of any insurer to comply with this subsection (2) to promptly report such failure to the commissioner in writing.
3. No insurance producer under this article shall commingle premiums belonging to insurers and returned premiums belonging to insureds with the producer's personal funds or with any other funds except those directly connected with the producer's insurance business.
4. Any insurer that delivers, in this state, a policy of insurance to an insurance producer representing the interest of the insured upon the application or request of such producer shall be deemed to have authorized such producer to receive on the insurer's behalf any premium due upon issuance or delivery of the policy; and the insurer shall be deemed to have so authorized the producer.

Source: L. 93: Entire article R&RE, p. 1370, § 1, effective January 1, 1995. L. 2001: (4) amended, p. 1210, § 32, effective January 1, 2002.

10-2-705. Bail bond documents - requirements - rules.

1. The insurance producer who posts a bail bond with the court on behalf of a defendant shall ensure that the following documents comply with the following provisions:
   1. An indemnity agreement must:
      1. Be in writing;
      2. Be signed by the producer;
      3. Be signed by the defendant or indemnitor;
      4. Set forth the amount of bail set in the case, the name of the defendant released on the bail bond, the court case number if available, the court where the bond is executed, the premium charged, the amount and type of collateral held by the insurance producer, and the conditions under which the collateral is returned;
      5. Contain documentation that the indemnitor has received copies of signed and dated disclosure forms; and
      6. If the defendant or indemnitor is illiterate or does not read English, contain a note on the indemnity agreement that the producer or a third party has read or translated the agreement to the defendant or indemnitor and be affixed with an affidavit to the indemnity agreement attesting that the document was translated;
   2. A promissory note must be:
      1. In writing;
      2. Signed by the producer; and
      3. Signed by the defendant or indemnitor;
   3. A collateral receipt must:
      1. Be dated;
      2. Be in writing;
      3. Be signed by the producer;
      4. Be signed by the defendant or indemnitor;
      5. Be prenumbered;
      6. Contain a full description of the collateral, including the condition of the collateral at the time it is taken into custody; and
      7. Set forth the amount of bail set in the case, the name of the defendant released on the bail bond, the court case number, the court where the bond is executed, the premium charged, the amount and type of collateral held by the insurance producer, and the conditions under which the collateral is returned;
   4. A bail bond revocation request must be:
      1. Dated;
      2. In writing;
      3. Signed by the producer; and
      4. Signed by the defendant or indemnitor.
2. 1. Before accepting consideration, the insurance producer who writes bail bonds shall commit to writing, sign, date, and obtain the defendant's or indemnitor's signature on an arrangement for the payment of all or part of the premium, commission, or fee, including the payment schedule. The signature of the insurance producer who writes bail bonds is not an obligation to pay any debt owed to a lender. To be enforceable, interest and financial charges on any unpaid premium must comply with the "Uniform Consumer Credit Code", articles 1 to 9 of title 5, C.R.S.
   2. Before accepting consideration or taking collateral, the insurance producer who writes bail bonds shall provide, in a form prescribed by the commissioner, a disclosure statement to each defendant and indemnitor detailing the terms of the bail bond.
3. 1. An insurance producer who posts a bail bond with the court and who accepts consideration for a bail bond or undertaking shall, for each payment received, provide to the person tendering payment a prenumbered, signed receipt containing the following:
      1. The date;
      2. The defendant's name;
      3. A description of the consideration and amount of money received;
      4. The purpose for which it was received;
      5. The number of any power-of-attorney form attached to the bail bond;
      6. The penal sum of the bail bond;
      7. The name of the person tendering payment; and
      8. The terms under which the money or other consideration is released.
   2. The insurance producer who posts a bail bond with the court shall provide the person tendering payment a signed and dated receipt for each premium payment listing the amount paid.
   1. (3.5) (a) If the bond is to be secured by real estate, the bail bonding agent shall provide the property owner with a written disclosure statement in the following form at the time an initial application is filed:
   2. The disclosure required in paragraph (a) of this subsection (3.5) shall be printed in fourteen-point, bold-faced type either:
      1. On a separate and specific document attached to or accompanying the application; or
      2. In a clear and conspicuous statement on the face of the application.
   3. Before a property owner executes any instrument creating a lien against real property, the bail bonding agent shall provide the property owner with a completed copy of the instrument creating the lien against real property and the disclosure statement described in paragraph (a) of this subsection (3.5). If a bail bonding agent fails to comply fully with the requirements of paragraphs (a) and (b) of this subsection (3.5) and this paragraph (c), any instrument creating a lien against real property shall be voidable.
   4. The bonding agent shall deliver to the property owner a fully executed and notarized reconveyance of title, a certificate of discharge, or a full release of any lien against real property that secures performance of the conditions of a bail bond within thirty-five days after receiving notice that the time for appealing an order that exonerated the bail bond has expired. The bonding agent shall also deliver to the property owner the original canceled note as evidence that the indebtedness secured by any lien instrument has been paid or that the purposes of said instrument have been fully satisfied and the original deed of trust, security agreement, or other instrument that secured the bail bond obligation. If a timely notice of appeal is filed, the thirty-five-day period shall begin on the day the appellate court's affirmation of the order becomes final. If the bonding agent fails to comply with the requirements of this paragraph (d), the property owner may petition the district court to issue an order directing the clerk of such court to execute a full reconveyance of title, a certificate of discharge, or a full release of any lien against real property created to secure performance of the conditions of the bail bond. The petition shall be verified and shall allege facts showing that the bonding agent has failed to comply with the provisions of this paragraph (d).
   5. Any bail bonding agent who violates this subsection (3.5) is liable to the property owner for all damages that may be sustained by reason of the violation, plus statutory damages in the sum of three hundred dollars. The property owner shall be entitled to recover court costs and reasonable attorney fees, as determined by the court, upon prevailing in any action brought to enforce the provisions of this subsection (3.5).
4. The insurance producer shall prepare or execute separate agreements and documents for each time the producer posts a bail bond with the court. The producer shall give the indemnitor a copy of each document executed in the course of the bail bond transaction.
5. For three years after the date of discharge of a bail bond and return of any collateral or proof of notice to the defendant or indemnitor that any promissory note has been satisfied, the insurance producer who posts the bail bond with the court shall keep at the producer's business copies of each receipt, indemnity agreement, bond, disclosure statement, payment plan, bond revocation request, or other document or information related to the bond transaction the commissioner reasonably requires by rule and shall make these documents available for inspection by the commissioner or the commissioner's authorized representative during normal business hours.
6. The indemnitor may be the defendant.
7. The commissioner may examine the business practices, books, and records of any insurance producer as often as the commissioner deems appropriate.

Disclosure of lien against real property

Do not sign this document until you read and understand it! This bail bond will be secured by real property you own or in which you have an interest. Failure to pay the bail bond premiums when due or the defendant's failure to comply with the conditions of bail could result in the loss of your property!

Source: L. 2012: Entire section added, (HB 12-1266), ch. 280, p. 1498, § 16, effective July 1. L. 2013: (3.5) added, (HB 13-1236), ch. 202, p. 840, § 6, effective May 11.

10-2-706. Insurance producer designee - responsibility.

An insurance producer may use another properly licensed and appointed insurance producer as an agent to comply with the requirements of section 10-2-705, but the insurance producer who posts the bail bond with the court is responsible for compliance with section 10-2-705 and is subject to discipline for noncompliance with any provision of section 10-2-705.

Source: L. 2012: Entire section added, (HB 12-1266), ch. 280, p. 1500, § 16, effective July 1. L. 2013: Entire section amended, (HB 13-1300), ch. 316, p. 1664, § 12, effective August 7.

10-2-707. Business practices - price limits - collateral.

1. An insurance producer who writes bail bonds shall not charge a premium or commission of more than the greater of fifty dollars or fifteen percent of the amount of bail furnished. An insurance producer who writes bail bonds shall not assess fees for any bail bond posted by the producer with the court unless the fee is for payment of a bail bond filing charged by a court or law enforcement agency, the fee is for the actual cost of storing collateral in a secure, self-service public storage facility, or the fee is for premium financing.
2. If an insurance producer who posts the bail bond with the court has issued a disclosure statement in accordance with section 10-2-705 (2)(b), the producer may use collateral received from the defendant or indemnitor to secure the following obligations:
   1. Compliance with the bond issued on behalf of the principal;
   2. Any balance due on the premium, commission, or fee for the bail bond; and
   3. Any actual costs incurred by the insurance producer as a result of issuing the bail bond.
3. Subject to section 16-4-110 (1)(c) and (2), a bail premium is earned in its entirety by a compensated surety upon the defendant's release from custody.

Source: L. 2012: Entire section added, (HB 12-1266), ch. 280, p. 1500, § 16, effective July 1. L. 2017: (3) added, (HB 17-1231), ch. 284, p. 1575, § 11, effective January 1, 2018.

10-2-801. Licenses - denial, suspension, revocation, termination - reporting of actions - definitions.

1. The commissioner may place an insurance producer on probation; suspend, revoke, or refuse to issue, continue, or renew an insurance producer license; order restitution to be paid from an insurance producer; or assess a civil penalty pursuant to section 10-2-804 or 10-3-1108, if, after notice to the insurance producer licensee and after a hearing held in accordance with sections 24-4-104 and 24-4-105, C.R.S., the commissioner finds that as to the licensee or applicant any one or more of the following conditions exist:
   1. Any incorrect, misleading, incomplete, or materially untrue information in the license application;
   2. Any cause for which issuance of the license could have been refused had it then existed and been known to the commissioner at the time of issuance;
   3. Violation of, or noncompliance with, section 18-13-130, C.R.S., or any insurance law, or violation of any lawful rule, order, or subpoena of the commissioner or of the insurance department of another state;
   4. Obtaining or attempting to obtain any such license through misrepresentation or fraud;
   5. Improperly withholding, misappropriating, or converting to the licensee's or applicant's own use any moneys or property belonging to policyholders, insurers, beneficiaries, or others received in the course of the business of insurance;
   6. Misrepresentation of the terms of any actual or proposed insurance contract or application for insurance;
   7. 1. Conviction of a felony or misdemeanor involving moral turpitude.
      2. For the purposes of this paragraph (g), "moral turpitude" shall include any sexual offense against a child as defined in section 18-3-411, C.R.S.
   8. Commission of any unfair trade practice or fraud;
   9. The use of fraudulent, coercive, or dishonest practices or demonstrating incompetence, untrustworthiness, or financial irresponsibility in this state or elsewhere;
   10. Suspension, revocation, or denial of an insurance license in any other state, province, district, or territory;
   11. Forgery of another's name to an application for insurance or to any document related to an insurance transaction;
   12. Cheating on an examination, including, but not limited to, improperly using notes or any other reference material to complete an examination for an insurance license;
   13. Failure to fully meet the licensing requirements;
   14. Knowingly accepting insurance business from a person who is not licensed;
   15. Failing to comply with an administrative or court order imposing a child support obligation;
   16. Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax; or
   17. Profiting either directly or indirectly from the business of a cash-bonding agent or professional cash-bail agent unless the person profiting is registered as a cash-bonding agent or professional cash-bail agent and the profit is derived from their own business.

   (1.5) The commissioner shall revoke the license of an insurance producer licensee if, after notice to the insurance producer licensee and after a hearing held in accordance with sections 24-4-104 and 24-4-105, C.R.S., the commissioner finds that the licensee was convicted under section 18-5-211, C.R.S.

2. In the event that the action by the commissioner is to not renew or continue or to deny an application for a license, the commissioner shall notify the applicant or licensee of the reasons for such action and advise, in writing, the applicant or licensee of the reason for the denial or nonrenewal of the applicant's or licensee's license.
3. 1. A producer or business entity shall report to the commissioner any administrative action taken against the producer in another jurisdiction or by another governmental agency in this state within thirty days after the final disposition of the matter. This report shall include a copy of the order, consent to order, or other relevant legal document.
   2. A producer shall report within thirty days after the conviction to the commissioner if he or she is convicted under section 18-5-211, C.R.S.
4. Within thirty days after the initial pretrial hearing date, a producer or business entity shall report to the commissioner any criminal prosecution of the producer in any jurisdiction. The report shall include a copy of the initial complaint, the order resulting from the hearing, and any other relevant legal documents.
5. If the commissioner revokes the license of an insurance producer pursuant to this section, or if an insurance producer surrenders its license to avoid discipline by the commissioner, the insurance producer shall not be eligible to apply for a new insurance producer license for two years after the date the license is revoked or surrendered and returned to the commissioner pursuant to section 10-2-802 (1).
6. For the purposes of this section, "restitution" means benefits or moneys owed due to the regulated entity's violation of this title.

Source: L. 93: Entire article R&RE, p. 1371, § 1, effective January 1, 1995. L. 2001: Entire section amended, p. 1210, § 33, effective January 1, 2002. L. 2008: (5) added, p. 210, § 5, effective March 26; IP(1) amended and (6) added, p. 585, § 1, effective August 5. L. 2012: (1)(c) amended and (1)(q) added, (HB 12-1266), ch. 280, p. 1501, § 17, effective July 1. L. 2014: (1.5) added and (3) amended, (SB 14-092), ch. 190, p. 710, § 2, effective July 1.

Editor's note: This section is similar to former §§ 10-2-115, 10-2-116, 10-2-117, and 10-2-212 as they existed prior to 1993.

10-2-802. Surrender of license.

1. An insurance producer license issued under this article, although issued and delivered to the licensee, shall at all times be the property of the state of Colorado and shall be surrendered or returned promptly to the commissioner by personal delivery or by certified or registered mail within fifteen days under any of the following conditions:
   1. Suspension, revocation, or termination of the license;
   2. Discontinuation or nonrenewal of the license by the licensee;
   3. Cessation of residency in this state or, in the case of a nonresident licensee, cessation of residency in the licensee's resident state; or
   4. Suspension, termination, or revocation of a nonresident licensee's license in the state of residence.
2. The commissioner may require surrender of an insurance producer license for any proper reason in addition to the grounds stated in subsection (1) of this section.
3. As to any insurance producer license issued pursuant to this article which is lost, stolen, or destroyed while in the possession of the licensee, the commissioner may accept, in lieu of return of the license, the affidavit of the individual licensee or, in the case of an insurance agency or business entity, the person given responsibility for custody of the license, as to the facts concerning such loss, theft, or destruction.

Source: L. 93: Entire article R&RE, p. 1372, § 1, effective January 1, 1995. L. 2001: (3) amended, p. 1212, § 34, effective January 1, 2002.

Editor's note: This section is similar to former §§ 10-2-115, 10-2-116, 10-2-117, 10-2-207, and 10-2-215 as they existed prior to 1993.

10-2-803. Notice of penalty, suspension, termination, revocation, or denial.

1. The commissioner shall promptly notify any insurance producer licensee regarding any penalty assessed, suspension, revocation, termination, or denial of the licensee's license by the commissioner.
2. Upon assessment of a penalty, suspension, revocation, or termination of the license of a resident licensee, the commissioner shall notify the central office of the national association of insurance commissioners or its affiliate or subsidiary.

Source: L. 93: Entire article R&RE, p. 1373, § 1, effective January 1, 1995. L. 2001: Entire section amended, p. 1212, § 35, effective January 1, 2002.

10-2-804. Investigation by commissioner.

1. The commissioner may examine and investigate the business affairs and conduct of every person applying for or holding an insurance producer license under this article to determine whether such person has been or is engaged in any violation of the insurance laws or rules of this state or has engaged in unfair or deceptive acts or practices in any state.
2. On receipt of any information regarding the possible violation of the insurance laws or rules of this or any other state, or the possible use of unfair or deceptive practices by a person applying for or holding an insurance producer license under this article, the commissioner may require such person to appear and show cause why the commissioner should not discontinue, revoke, suspend, or refuse to issue or renew the person's license and may, upon the failure of such person to show cause, revoke, suspend, or refuse to issue or renew the license.
3. The license of an insurance agency or business entity may be suspended or revoked or the renewal or continuation refused if the commissioner finds, after hearing, that an individual licensee's violation was known or should have been known to one or more of the partners, officers, or managers acting on behalf of the insurance agency or business entity, including any foreign or domestic entity as defined in section 7-90-102, C.R.S., and that such violation was not reported to the division of insurance nor corrective action taken in relation thereto.
4. In addition to or in lieu of any applicable denial, suspension, or revocation of an insurance producer license, any person who violates any provision of this article may, after hearing, be subject to any remedy or civil penalty of not more than three thousand dollars for each such violation.
5. The commissioner shall retain the authority to enforce the provisions of and impose any penalty or remedy authorized by this article against any person who is under investigation for or charged with a violation of this article even if the person's license has been surrendered or has lapsed by operation of law.

Source: L. 93: Entire article R&RE, p. 1373, § 1, effective January 1, 1995. L. 2001: (2), (3), and (4) amended and (5) added, p. 1212, § 36, effective January 1, 2002. L. 2008: (4) amended, p. 2171, § 2, effective August 5.

Editor's note: This section is similar to former § 10-2-214 as it existed prior to 1993.

10-2-901. Short title.

This part 9 shall be known and may be cited as the "Reinsurance Intermediary Act".

Source: L. 93: Entire article R&RE, p. 1374, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 10-2-301 as it existed prior to 1993.

10-2-902. Definitions.

As used in this part 9, unless the context otherwise requires:

1. "Controlling person" means any person, firm, association, or corporation that directly or indirectly has the power to direct or cause to be directed, the management, control, or activities of the reinsurance intermediary.
2. "Insurer" means any person, firm, association, or corporation duly licensed in this state pursuant to applicable provisions of the insurance laws as an insurer.
3. "Licensed producer" means an insurance producer or reinsurance intermediary licensed in this state pursuant to applicable provisions of the insurance laws.
4. "Reinsurance intermediary" means a reinsurance intermediary-producer as defined in subsection (6) of this section or a reinsurance intermediary-manager as defined in subsection (5) of this section.
5. "Reinsurance intermediary-manager", referred to in this part 9 as "RM", means any person, firm, association, or corporation that has authority to bind or manages all or part of the assumed reinsurance business of a reinsurer (including the management of a separate division, department, or underwriting office) and acts as an agent for such reinsurer whether known as an RM, manager, or other similar term. Notwithstanding the provisions of this subsection (5), the following persons shall not be considered an RM, with respect to such reinsurer, for the purposes of this part 9:
   1. An employee of the reinsurer;
   2. A United States manager of the United States branch of an alien reinsurer;
   3. An underwriting manager who, pursuant to contract, manages all the reinsurance operations of the reinsurer and who is under common control with the reinsurer subject to the provisions of part 8 of article 3 of this title and whose compensation is not based on the volume of premiums written;
   4. The manager of a group, association, pool, or organization of insurers which engage in joint underwriting or joint reinsurance and are subject to examination by the commissioner or the equivalent insurance regulatory authority of the state in which the manager's principal business office is located.
6. "Reinsurance intermediary-producer", referred to in this part 9 as "RP", means any person, other than an officer or employee of the ceding insurer, firm, association, or corporation, that solicits, negotiates, or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of such insurer.
7. "Reinsurer" means any person, firm, association, or corporation duly licensed in this state pursuant to the applicable provisions of the insurance laws as an insurer with the authority to assume reinsurance.
8. "To be in violation" means that the reinsurance intermediary, insurer, or reinsurer for whom the reinsurance intermediary was acting failed to substantially comply with the provisions of this part 9.

Source: L. 93: Entire article R&RE, p. 1374, § 1, effective January 1, 1995. L. 2009: (4) to (6) amended, (SB 09-292), ch. 369, p. 1941, § 11, effective August 5.

Editor's note: This section is similar to former § 10-2-302 as it existed prior to 1993.

10-2-903. Licensure.

1. No person, firm, association, or corporation shall act as an RP in this state if the RP maintains an office either directly or as a member or employee of a firm or association, or an officer, director, or employee of a corporation:
   1. In this state, unless such RP is a licensed producer in this state; or
   2. In another state, unless such RP is a licensed producer in this state or another state having a law substantially similar to this part 9, or such RP is licensed in this state as a nonresident reinsurance intermediary.
2. No person, firm, association, or corporation shall act as an RM:
   1. For a reinsurer domiciled in this state, unless such RM is a licensed producer in this state;
   2. In this state, if the RM maintains an office either directly or as a member or employee of a firm or association, or an officer, director, or employee of a corporation in this state, unless such RM is a licensed producer in this state;
   3. In another state for a nondomestic insurer, unless such RM is a licensed producer in this state or another state having a law substantially similar to this part 9 or such person is licensed in this state as a nonresident reinsurance intermediary.
3. The commissioner may require an RM subject to subsection (2) of this section to:
   1. File a bond in an amount from an insurer acceptable to the commissioner for the protection of the reinsurer; and
   2. Maintain an errors and omissions policy in an amount acceptable to the commissioner.
4. 1. The commissioner may issue a reinsurance intermediary license to any person, firm, association, or corporation that has complied with the requirements of this part 9. Any such license issued to a firm or association will authorize all the members of such firm or association and any designated employees to act as reinsurance intermediaries under the license, and all such persons shall be named in the application and any supplements thereto. Any such license issued to a corporation shall authorize all of the officers, and any designated employees and directors thereof to act as reinsurance intermediaries on behalf of such corporation, and all such persons shall be named in the application and any supplements thereto.
   2. If the applicant for a reinsurance intermediary license is a nonresident, such applicant, as a condition precedent to receiving or holding a license, shall designate the commissioner as agent for service of process in the manner, and with the same legal effect, provided for by this part 9 for designation of service of process upon unauthorized insurers; and also shall furnish the commissioner with the name and address of a resident of this state upon whom notices or orders of the commissioner or process affecting such nonresident reinsurance intermediary may be served. Such licensee shall promptly notify the commissioner in writing of every change in its designated agent for service of process, and such change shall not become effective until acknowledged by the commissioner.
5. The commissioner may refuse to issue a reinsurance intermediary license if, in the commissioner's judgment, the applicant, any one named on the application, or any member, principal, officer, or director of the applicant, is not trustworthy, or that any controlling person of such applicant is not trustworthy to act as a reinsurance intermediary, or that any individual specified in this subsection (5) has given cause for revocation or suspension of such license, or has failed to comply with any prerequisite for the issuance of such license. Upon written request therefor, the commissioner shall furnish a summary of the basis for refusal to issue a license, which document shall be privileged and not subject to the provisions of part 2 of article 72 of title 24, C.R.S.
6. Licensed attorneys at law of this state when acting in their professional capacity as such shall be exempt from this section.

Source: L. 93: Entire article R&RE, p. 1375, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 10-2-303 as it existed prior to 1993.

10-2-904. Required contract provisions - reinsurance intermediary-producers.

1. Transactions between an RP and the insurer such RP represents shall only be entered into pursuant to a written authorization specifying the responsibilities of each party. The authorization shall, at a minimum, contain provisions that:
   1. The insurer may terminate the RP's authority at any time;
   2. The RP shall render accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges, and other fees received by, or owing to, the RP, and remit all funds due to the insurer within thirty days of receipt;
   3. All funds collected for the insurer's account shall be held by the RP in a fiduciary capacity in a bank which is a qualified United States financial institution;
   4. The RP shall comply with section 10-2-905;
   5. The RP shall comply with the written standards established by the insurer for the cession or retrocession of all risks;
   6. The RP shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.

Source: L. 93: Entire article R&RE, p. 1377, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 10-2-304 as it existed prior to 1993.

10-2-905. Books and records - reinsurance intermediary-producers.

1. For at least ten years after expiration of each contract of reinsurance transacted by the RP, the RP shall keep a complete record for each transaction showing:
   1. The type of contract, limits, underwriting restrictions, classes, or risks and territory;
   2. The period of coverage, including effective and expiration dates, cancellation provisions, and notice required of cancellation;
   3. The reporting and settlement requirements of balances;
   4. The rate used to compute the reinsurance premium;
   5. The names and addresses of assuming reinsurers;
   6. The rates of all reinsurance commissions, including the commissions on any retrocessions handled by the RP;
   7. Related correspondence and memoranda;
   8. Proof of placement;
   9. Details regarding retrocessions handled by the RP including the identity of retrocessionaires and the percentage of each contract assumed or ceded;
   10. Financial records, including but not limited to premium and loss accounts; and
   11. When the RP procures a reinsurance contract on behalf of a licensed ceding insurer:
       1. Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or
       2. If placed through a representative of the assuming reinsurer, other than an employee, written evidence that such reinsurer has delegated binding authority to the representative.
2. The insurer shall have access and the right to copy and audit all accounts and records maintained by the RP related to its business in a form usable by the insurer.

Source: L. 93: Entire article R&RE, p. 1377, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 10-2-305 as it existed prior to 1993.

10-2-906. Duties of insurers utilizing the services of a reinsurance intermediary-producer.

1. An insurer shall not engage the services of any person, firm, association, or corporation to act as an RP on its behalf unless such person is licensed as required by section 10-2-903 (1).
2. An insurer may not employ an individual who is employed by an RP with which it transacts business, unless such RP is under common control with the insurer and subject to the provisions of part 8 of article 3 of this title.
3. The insurer shall annually obtain a copy of statements of the financial condition of each RP with which it transacts business.

Source: L. 93: Entire article R&RE, p. 1378, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 10-2-306 as it existed prior to 1993.

10-2-907. Required contract provisions - reinsurance intermediary-managers.

1. Transactions between an RM and the reinsurer such RM represents shall only be entered into pursuant to a written contract specifying the responsibilities of each party, which shall be approved by the reinsurer's board of directors. At least thirty days before such reinsurer assumes or cedes business through such producer, a true copy of the approved contract shall be filed with the commissioner for approval. The contract shall, at a minimum, contain provisions that incorporate all of the following:
   1. The reinsurer may terminate the contract for cause upon written notice to the RM. The reinsurer may suspend the authority of the RM to assume or cede business during the pendency of any dispute regarding the cause for termination.
   2. The RM shall render accounts to the reinsurer accurately detailing all material transactions, including information necessary to support all commissions, charges, and other fees received by, or owing to, the RM, and remit all funds due under the contract to the reinsurer on not less than a monthly basis;
   3. All funds collected for the reinsurer's account shall be held by the RM in a fiduciary capacity in a bank that is a qualified United States financial institution as defined in section 10-1-102 (17). The RM may retain no more than three months' estimated claims payments and allocated loss adjustment expenses. The RM shall maintain a separate bank account for each reinsurer that such RM represents.
   4. For at least ten years after expiration of each contract of reinsurance transacted by the RM, the RM shall keep a complete record for each transaction showing:
      1. The type of contract, limits, underwriting restrictions, classes, or risks and territory;
      2. The period of coverage, including effective and expiration dates, cancellation provisions, notice required for cancellation, and disposition of outstanding reserves on covered risks;
      3. The reporting and settlement requirements of balances;
      4. The rate used to compute the reinsurance premium;
      5. The names and addresses of reinsurers;
      6. The rates of all reinsurance commissions, including the commissions on any retrocessions handled by the RM;
      7. Related correspondence and memoranda;
      8. Proof of placement;
      9. Details regarding retrocessions handled by the RM, as permitted by section 10-2-909 (4), including the identity of retrocessionaires and percentage of each contract assumed or ceded;
      10. Financial records, including but not limited to premium and loss accounts; and
      11. When the RM places a reinsurance contract on behalf of a ceding insurer:
          1. Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or
          2. If placed through a representative of the assuming reinsurer, other than an employee, written evidence that such reinsurer has delegated binding authority to the representative;
   5. The reinsurer shall have access and the right to copy all accounts and records maintained by the RM related to such RM's business in a form usable by the reinsurer;
   6. The contract cannot be assigned in whole or in part by the RM;
   7. The RM shall comply with the written underwriting and rating standards established by the insurer for the acceptance, rejection, or cession of all risks;
   8. The contract sets forth the rates, terms, and purposes of commissions, charges, and other fees which the RM may levy against the reinsurer;
   9. 1. If the contract permits the RM to settle claims on behalf of the reinsurer, all claims shall be reported to the reinsurer in a timely manner.
      2. A copy of the claim file shall be sent to the reinsurer at its request or as soon as it becomes known that the claim:
         1. Has the potential to exceed the lesser of an amount determined by the commissioner or the limit set by the reinsurer;
         2. Involves a coverage dispute;
         3. May exceed the RM claims settlement authority;
         4. Is open for more than six months; or
         5. Is closed by payment of the lesser of an amount set by the commissioner or an amount set by the reinsurer;
      3. All claim files shall be the joint property of the reinsurer and RM; however, upon an order of liquidation of the reinsurer, such files shall become the sole property of the reinsurer or its estate; the RM shall have reasonable access to and the right to copy the files on a timely basis;
      4. Any settlement authority granted to the RM may be terminated for cause upon the reinsurer's written notice to the RM or upon the termination of the contract. The reinsurer may suspend the settlement authority during the pendency of the dispute regarding the cause of termination.
   10. If the contract provides for a sharing of interim profits by the RM, that such interim profits will not be paid until one year after the end of each underwriting period for property business and five years after the end of each underwriting period for casualty business or a later period set by the commissioner for specified lines of insurance and not until the adequacy of reserves on remaining claims has been verified pursuant to section 10-2-909 (3);
   11. The RM shall annually provide the reinsurer with a statement of its financial condition prepared by an independent certified accountant;
   12. The reinsurer shall periodically and at least semiannually conduct an on-site review of the underwriting and claims processing operations of the RM;
   13. The RM shall disclose to the reinsurer any relationship such RM has with any insurer prior to ceding or assuming any business with such insurer pursuant to the contract;
   14. The acts of the RM shall be deemed to be the acts of the reinsurer on whose behalf it is acting.

Source: L. 93: Entire article R&RE, p. 1378, § 1, effective January 1, 1995. L. 2003: (1)(c) amended, p. 615, § 7, effective July 1.

Editor's note: This section is similar to former § 10-2-307 as it existed prior to 1993.

10-2-908. Prohibited acts.

1. The RM shall not:
   1. Bind retrocessions on behalf of the reinsurer; except that the RM may bind facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for such retrocessions. Such guidelines shall include a list of reinsurers with which such automatic agreements are in effect, and for each such reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules.
   2. Commit the reinsurer to participate in reinsurance syndicates;
   3. Appoint any producer without assuring that the producer is lawfully licensed to transact the type of reinsurance for which he is appointed;
   4. Without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or one percent of the reinsurer's policyholder's surplus as of December 31 of the last complete calendar year;
   5. Collect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, without prior approval of the reinsurer. If prior approval is given, a report shall be promptly forwarded to the reinsurer.
   6. Jointly employ an individual who is employed by the reinsurer;
   7. Appoint a sub-RM.

Source: L. 93: Entire article R&RE, p. 1381, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 10-2-308 as it existed prior to 1993.

10-2-909. Duties of reinsurers utilizing the services of a reinsurance intermediary-manager.

1. A reinsurer shall not engage the services of any person, firm, association, or corporation to act as an RM on its behalf unless such person is licensed as required by section 10-2-903 (2).
2. The reinsurer shall annually obtain a copy of statements of the financial condition of each RM which such reinsurer has engaged prepared by an independent certified accountant in a form acceptable to the commissioner.
3. If an RM establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the RM. This opinion shall be in addition to any other required loss reserve certification.
4. Binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who shall not be affiliated with the RM.
5. Within thirty days of termination of a contract with an RM, the reinsurer shall provide written notification of such termination to the commissioner.
6. A reinsurer shall not appoint to its board of directors, any officer, director, employee, controlling shareholder, or subproducer of its RM. This subsection (6) shall not apply to relationships governed by part 8 of article 3 of this title.

Source: L. 93: Entire article R&RE, p. 1382, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 10-2-309 as it existed prior to 1993.

10-2-910. Examination authority.

1. A reinsurance intermediary shall be subject to examination by the commissioner. The commissioner shall have access to all books, bank accounts, and records of the reinsurance intermediary in a form usable to the commissioner.
2. An RM may be examined as if it were the reinsurer.

Source: L. 93: Entire article R&RE, p. 1382, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 10-2-310 as it existed prior to 1993.

10-2-911. Penalties and liabilities.

1. A reinsurance intermediary, insurer, or reinsurer found by the commissioner, after a hearing conducted in accordance with article 4 of title 24, C.R.S., to be in violation of any provision of this part 9 shall:
   1. For each separate violation, pay a penalty in an amount not to exceed five thousand dollars;
   2. Be subject to revocation or suspension of its license; and
   3. If a violation was committed by the reinsurance intermediary, such reinsurance intermediary shall make restitution to the insurer, reinsurer, rehabilitator, or liquidator of the insurer or reinsurer for the net losses incurred by the insurer or reinsurer attributable to such violation.
2. The decision, determination, or order of the commissioner pursuant to subsection (1) of this section shall be subject to judicial review by the court of appeals pursuant to section 24-4-106 (11), C.R.S.
3. Nothing contained in this section shall affect the right of the commissioner to impose any other penalties provided in this title.
4. Nothing contained in this part 9 is intended to or shall in any manner limit or restrict the rights of policyholders, claimants, creditors, or other third parties or confer any rights to such persons.

Source: L. 93: Entire article R&RE, p. 1382, § 1, effective January 1, 1995.

10-2-912. Rules and regulations.

The commissioner may adopt reasonable rules and regulations for the implementation and administration of the provisions of this part 9.

Source: L. 93: Entire article R&RE, p. 1382, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 10-2-312 as it existed prior to 1993.

10-2-1001. Short title.

This part 10 shall be known and may be cited as the "Managing General Agents Act".

Source: L. 93: Entire article R&RE, p. 1383, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 10-2-401 as it existed prior to 1993.

10-2-1002. Definitions.

As used in this part 10, unless the context otherwise requires:

1. "Insurer" means any person, firm, association, or corporation duly licensed in this state as an insurance company pursuant to the applicable provisions of the insurance laws.
2. 1. "Managing general agent", referred to in this part 10 as "MGA", means any person, firm, association, or corporation who negotiates and binds ceding reinsurance contracts on behalf of an insurer or manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office, and acts as an agent for such insurer whether known as a managing general agent, manager, or other similar term, who, with or without the authority, either separately or together with affiliates, produces, directly or indirectly, and underwrites an amount of gross direct written premium equal to or more than five percent of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year together with one or both of the following:
      1. Adjusts or pays claims in excess of an amount determined by the commissioner; or
      2. Negotiates reinsurance on behalf of the insurer.
   2. Notwithstanding the provisions of paragraph (a) of this subsection (2), the following persons shall not be considered an MGA for the purposes of this part 10:
      1. An employee of the insurer;
      2. A United States manager of the United States branch of an alien insurer;
      3. An underwriting manager who, pursuant to contract, manages all the insurance operations of the insurer and who is under common control with the insurer subject to the provisions of part 8 of article 3 of this title and whose compensation is not based on the volume of premiums written;
      4. The attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurer or interinsurance exchange under powers of attorney.
3. "Underwrite" means the authority to accept or reject risk on behalf of the insurer.

Source: L. 93: Entire article R&RE, p. 1383, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 10-2-402 as it existed prior to 1993.

10-2-1003. Licensure.

1. No person, firm, association, or corporation shall act in the capacity of an MGA with respect to risks located in this state for an insurer licensed in this state unless such person is a licensed producer in this state.
2. No person, firm, association, or corporation shall act in the capacity of an MGA representing an insurer domiciled in this state with respect to risks located outside this state unless such person is licensed as a producer in this state (such license may be a nonresident license) pursuant to the provisions of this part 10.
3. The commissioner may require a bond in an amount acceptable to the commissioner for the protection of the insurer.
4. The commissioner may require the MGA to maintain an errors and omissions policy.

Source: L. 93: Entire article R&RE, p. 1384, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 10-2-403 as it existed prior to 1993.

10-2-1004. Required contract provisions.

1. No person, firm, association, or corporation acting in the capacity of an MGA shall place business with an insurer unless there is in force a written contract between the parties which sets forth the responsibilities of each party and where both parties share responsibility for a particular function, which specifies the division of such responsibilities, and which contains the following minimum provisions:
   1. The insurer may terminate the contract for cause upon written notice to the MGA. The insurer may suspend the underwriting authority of the MGA during the pendency of any dispute regarding the cause for termination.
   2. The MGA shall render accounts to the insurer detailing all transactions and remit all funds due under the contract to the insurer on not less than a monthly basis.
   3. All funds collected for the insurer's account shall be held by the MGA in a fiduciary capacity in a bank which is a member of the federal reserve system. This account shall be used for all payments on behalf of the insurer. The MGA may retain no more than three months' estimated claims payments and allocated loss adjustment expenses.
   4. Separate records of business written by the MGA shall be maintained. The insurer shall have access and right to copy all accounts and records related to its business in a form usable by the insurer, and the commissioner shall have access to all books, bank accounts, and records of the MGA in a form usable to the commissioner. Such records shall be retained for a period of five years commencing no later than the effective date of the last financial examination of the insurer.
   5. The contract may not be assigned in whole or part by the MGA.
   6. 1. Appropriate underwriting guidelines which shall include:
         1. The maximum annual premium volume;
         2. The basis of the rates to be charged;
         3. The types of risks which may be written;
         4. Maximum limits of liability;
         5. Applicable exclusions;
         6. Territorial limitations;
         7. Policy cancellation provisions; and
         8. The maximum policy period.
      2. The insurer shall have the right to cancel or nonrenew any policy of insurance subject to the applicable laws and regulations concerning the cancellation and nonrenewal of insurance policies.
   7. 1. If the contract permits the MGA to settle claims on behalf of the insurer, all claims shall be reported to the company in a timely manner.
      2. A copy of the claim file shall be sent to the insurer at its request or as soon as it becomes known that the claim:
         1. Has the potential to exceed an amount determined by the commissioner or exceeds the limit set by the company, whichever is less;
         2. Involves a coverage dispute;
         3. May exceed the MGA's claims settlement authority;
         4. Is open for more than six months; or
         5. Is closed by payment of an amount set by the commissioner or an amount set by the company, whichever is less.
      3. All claim files shall be the joint property of the insurer and the MGA; however, upon an order of liquidation of the insurer, such files shall become the sole property of the insurer or its estate. The MGA shall have reasonable access to and the right to copy the files on a timely basis.
      4. Any settlement authority granted to the MGA may be terminated for cause upon the insurer's written notice to the MGA or upon the termination of the contract. The insurer may suspend the settlement authority during the pendency of any dispute regarding the cause for termination.
   8. Where electronic claims files are in existence, the contract must address the timely transmission of the data;
   9. If the contract provides for a sharing of interim profits by the MGA, and the MGA has the authority to determine the amount of the interim profits by establishing loss reserves or controlling claim payments, or in any other manner, interim profits shall not be paid to the MGA until one year after they are earned for property insurance business and five years after they are earned on casualty business and not until the profits have been verified pursuant to section 10-2-1005.
2. The MGA shall not:
   1. Bind reinsurance or retrocessions on behalf of the insurer; except that the MGA may bind facultative reinsurance contracts pursuant to obligatory facultative agreements if the contract with the insurer contains reinsurance underwriting guidelines including, for both reinsurance assumed and ceded, a list of reinsurers with which such automatic agreements are in effect, the coverages and amounts or percentages that may be reinsured, and commission schedules;
   2. Commit the insurer to participate in insurance or reinsurance syndicates;
   3. Appoint any producer without assuring that the producer is lawfully licensed to transact the type of insurance for which such producer is appointed;
   4. Without prior approval of the insurer, pay or commit the insurer to pay a claim over a specified amount, net of reinsurance, which shall not exceed one percent of the insurer's policyholder's surplus as of December 31 of the last completed calendar year;
   5. Collect any payment from a reinsurer or commit the insurer to any claim settlement with a reinsurer, without prior approval of the insurer. If prior approval is given, a report shall be promptly forwarded to the insurer.
   6. Permit its subproducer to serve on the insurer's board of directors;
   7. Jointly employ an individual who is employed with the insurer;
   8. Appoint a sub-MGA.

Source: L. 93: Entire article R&RE, p. 1384, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 10-2-404 as it existed prior to 1993.

10-2-1005. Duties of insurers.

1. The insurer shall have on file an independent financial examination, in a form acceptable to the commissioner, of each MGA with which it has done business.
2. If an MGA establishes loss reserves, the insurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the MGA. This is in addition to any other required loss reserve certification.
3. The insurer shall periodically and at least semiannually conduct an on-site review of the underwriting and claims processing operations of the MGA.
4. Binding authority for all reinsurance contracts or participation in insurance or reinsurance syndicates shall rest with an officer of the insurer, who shall not be affiliated with the MGA.
5. Within thirty days of entering into or termination of a contract with an MGA, the insurer shall provide written notification of such appointment or termination to the commissioner. Notices of appointment of an MGA shall include a statement of duties which the applicant is expected to perform on behalf of the insurer, the lines of insurance for which the applicant is to be authorized to act, and any other information the commissioner may request.
6. An insurer shall review its books and records each quarter to determine if any producer has become an MGA as defined in section 10-2-1002 (2). If the insurer determines that a producer has become an MGA pursuant to section 10-2-1002 (2), the insurer shall promptly notify the producer and the commissioner of such determination and the insurer and producer shall fully comply with the provisions of this part 10 within thirty days.
7. An insurer shall not appoint to its board of directors an officer, director, employee, subproducer, or controlling shareholder of its MGA's. This subsection (7) shall not apply to relationships governed by part 8 of article 3 of this title.

Source: L. 93: Entire article R&RE, p. 1387, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 10-2-405 as it existed prior to 1993.

10-2-1006. Examination authority.

The acts of the MGA are considered to be the acts of the insurer on whose behalf the MGA is acting. An MGA may be examined as if said MGA were the insurer.

Source: L. 93: Entire article R&RE, p. 1388, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 10-2-406 as it existed prior to 1993.

10-2-1007. Penalties and liabilities.

1. If the commissioner finds, after a hearing conducted in accordance with article 4 of title 24, C.R.S., that any person has violated any provision of this part 10, the commissioner may order:
   1. For each separate violation, a penalty in an amount not to exceed five thousand dollars;
   2. Revocation or suspension of the producer's license; and
   3. The MGA to reimburse the insurer, the rehabilitator, or liquidator of the insurer for any losses incurred by the insurer caused by a violation of this part 10 committed by the MGA.
2. The decision, determination, or order of the commissioner pursuant to subsection (1) of this section shall be subject to judicial review by the court of appeals pursuant to section 24-4-106 (11), C.R.S.
3. Nothing contained in this section shall affect the right of the commissioner to impose any other penalties provided for in this title.
4. Nothing contained in this part 10 is intended to or shall in any manner limit or restrict the rights of policyholders, claimants, and auditors.

Source: L. 93: Entire article R&RE, p. 1388, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 10-2-407 as it existed prior to 1993.

10-2-1008. Rules and regulations.

The commissioner may adopt reasonable rules and regulations for the implementation and administration of the provisions of this part 10.

Source: L. 93: Entire article R&RE, p. 1388, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 10-2-408 as it existed prior to 1993.

10-2-1101. Effective date - applicability.

This article shall take effect January 1, 1995. Insurance agent and broker licenses issued pursuant to part 2 of this article prior to said date shall expire at such time as the commissioner shall determine by rule promulgated under the authority of this article. The holders of such licenses may obtain comparable licenses under this article by complying with the rules promulgated by the commissioner under the authority of this article.

Source: L. 93: Entire article R&RE, p. 1389, § 1, effective January 1, 1995.

ARTICLE 3 REGULATION OF INSURANCE COMPANIES

Section

PART 1 GENERAL

PART 2 FINANCIAL AFFAIRS

PART 3 UNIFORM GUARANTY DEPOSITS

PART 4 DELINQUENCIES

PART 5 INSURERS' REHABILITATION AND LIQUIDATION

PART 6 EXCHANGE OF INSURANCE SECURITIES ACT

PART 7 CREDIT FOR REINSURANCE MODEL ACT

PART 8 INSURANCE HOLDING COMPANY SYSTEMS

PART 9 UNAUTHORIZED INSURANCE

PART 10 UNAUTHORIZED INSURERS PROCESS ACT

PART 11 UNFAIR COMPETITION - DECEPTIVE PRACTICES

PART 12 SYSTEMS FOR HOLDING AND TRANSFERRING SECURITIES

PART 13 MODEL QUALITY REPLACEMENT PARTS ACT

PART 14 MODEL RISK RETENTION ACT

PART 15 OWN RISK AND SOLVENCY ASSESSMENT (ORSA)

PART 16 CORPORATE GOVERNANCE ANNUAL DISCLOSURES

PART 17 DOMESTIC STOCK INSURER DIVISION

10-3-101. Formation of insurance companies.

1. Whenever any number of persons associate to form an insurance company for any of the purposes named in section 10-3-102, they shall submit articles of incorporation to the commissioner and attorney general for examination. After being approved by the commissioner and the attorney general, the articles shall be filed in the office of the secretary of state, who shall issue a certificate of incorporation. A copy of such articles, certified by the secretary of state, shall be filed with the commissioner. Any filings made pursuant to this subsection (1) may be in an electronic format.
2. When not less than the amount required by section 10-3-201 has been paid in by the incorporators and deposited with the commissioner, as provided for in this title (except article 15) and article 14 of title 24, C.R.S., the commissioner shall cause an examination to be made either by the commissioner or some disinterested person especially appointed by the commissioner for the purpose, who shall certify that said provisions have been complied with by said company, as far as applicable thereto. Such certificate shall be filed in the office of the commissioner, who shall thereupon deliver to such company a certified copy thereof, which, together with a copy of the articles of incorporation, shall be filed in the office of the recorder of deeds of the county wherein the company is to be located, before the authority to commence business is granted. Any filings required to be made with the commissioner pursuant to this subsection (2) may be in an electronic format.
3. Whenever any such corporation thereafter desires to amend its articles of incorporation, it shall file its certificate of amendment with the commissioner before filing the same with the secretary of state, and if the commissioner, with the advice of the attorney general, finds the same to be legally adopted and in due legal form and not in conflict with the provisions of law governing such companies, then and not otherwise such certificate of amendment shall be filed with the secretary of state. Filings required pursuant to this subsection (3) may be in an electronic format.
4. To supplement the examination powers of the commissioner, as provided in this article, the commissioner may request or require a company, entity, or applicant, or the company, entity, or applicant may make a request to the commissioner, to be examined by independent examiners certified by the society of financial examiners, actuaries who are members of the American academy of actuaries, or other qualified loss reserve specialists, independent risk managers, independent certified public accountants, or other qualified examiners of insurance companies deemed competent by the commissioner, or any combination of such qualified persons. The commissioner may also accept as part of his examination reports made by any qualified person pursuant to this subsection (4). Neither such persons nor members of their immediate families shall be officers of, connected with, or financially interested in the entity, company, or applicant being examined other than as policyholders, nor shall they be financially interested in any other corporation or person affected by the examination, investigation, or hearing. The commissioner shall establish guidelines for assuring the neutrality of those persons to be authorized to supplement the examination procedures authorized in this article. The reasonable expenses and charges of such persons so retained or designated shall be paid directly by the company, entity, or applicant to any such outside authorized examiner.

Source: L. 13: p. 345, § 30. L. 15: p. 269, § 1. L. 21: p. 455, § 4. C.L. § 2501. CSA: C. 87, § 28. L. 41: p. 501, § 1. CRS 53: § 72-1-42. C.R.S. 1963: § 72-1-42. L. 89: (4) added, p. 432, § 2, effective June 7. L. 91: (4) amended, p. 1242, § 3, effective July 1. L. 92: (2) amended, p. 1535, § 22, effective May 20. L. 2004: (1), (2), and (3) amended, p. 1058, § 3, effective July 1. L. 2012: (2) amended, (HB 12-1266), ch. 280, p. 1501, § 18, effective July 1.

Cross references: For the necessity of certificate of authority to do insurance business, see § 10-3-105.

10-3-102. Purpose of organization or admittance.

1. Any domestic insurance company having the required amount of capital or guaranty fund and surplus, when permitted by its articles of incorporation or charter, may be authorized and licensed by the commissioner to make insurance under one of the following paragraphs:
   1. To make insurance or reinsurance on dwelling houses, stores, and all kinds of buildings and household furniture, and other property against loss or damage, including loss of use or occupancy, by fire, lightning, windstorm, tornado, cyclone, earthquake, hail, bombardment, invasion, insurrection, riot, civil war or commotion, military or usurped power, and by explosion whether fire ensues or not; also against loss or damage by water or other fluid to any goods or premises arising from the breakage or leakage of sprinklers, pumps, or other apparatus erected for extinguishing fires or of other conduits or containers or by waters entering through leaks or openings in buildings and of water pipes, and against accidental injury to such sprinklers, pumps, apparatus, conduits, containers, or water pipes, and upon vessels, boats, cargoes, goods, merchandise, freights, and other property against loss or damage by any of the risks of lake, river, canal, inland, and ocean navigation and transportation, including all personal property floater risks and including insurance upon automobiles and all types of aircraft, whether stationary or being operated under their own power, which include all of the hazards of fire, explosion, transportation, collision, loss by legal liability for damage to persons and to property resulting from the maintenance and use of automobiles, and airplanes, seaplanes, dirigibles, or other aircraft, and loss by burglary or theft, vandalism, or malicious mischief, or the wrongful conversion, disposal, or concealment of automobiles, and all types of aircraft, whether held under conditional sale contract or subject to chattel mortgages or any one or more of such hazards;
   2. To make insurance or reinsurance upon the lives of persons, and every insurance pertaining thereto or connected therewith, including health and accident insurance, and to grant, purchase, or dispose of annuities, group annuities, unallocated annuities, guaranteed investment contracts, and funding agreement contracts;
   3. To make any of the following kinds of insurance, or reinsurance:
      1. Upon the health of persons;
      2. Against injury, disablement, or death of persons, resulting from traveling or from accidents by land or water;
      3. Upon the lives of horses, cattle, and other livestock;
      4. Upon plate glass against breakage;
      5. Upon steam boilers, flywheels, and other forms of liability insurance, against explosion and against loss by damage to life or property resulting therefrom;
      6. Against loss by burglary or theft or both;
      7. To engage in the business of suretyship, and guaranteeing the fidelity of persons holding places of trust, public or private;
      8. Full coverage for motor vehicles;
      9. All forms of casualty insurance, including all personal property floater risks;
   4. To make insurance or reinsurance upon any of the risks set forth in paragraphs (a) and (c) of this subsection (1);
   5. To make title insurance or reinsurance.
2. Any foreign or alien insurance company having the required amount of capital or guaranty fund, surplus, and deposit, when permitted by its articles of incorporation or charter and by the proper insurance supervisory authority of its domiciliary jurisdiction, may be authorized and licensed by the commissioner to make insurance under any one of the subsections of this section if otherwise qualified according to law.
3. No foreign, alien, or domestic insurance company, excluding life insurance companies and title insurance companies, shall expose itself to loss in an amount exceeding ten percent of its paid-up capital or guaranty fund and surplus on any one risk or hazard, unless the same is reinsured through an insurance company which is licensed or accredited in this state, or otherwise through an insurance company acceptable to the commissioner.
4. Any insurance company authorized to transact the business of title insurance under section 72-1-41 (4)(i), C.R.S. 1963, prior to July 1, 1969, shall not, by reason of the provisions of this part 1, be prohibited from transacting said business.

Source: L. 13: p. 344, § 29. C.L. § 2500. CSA: C. 87, § 27. L. 47: p. 597, § 1. L. 51: p. 481, § 1. CRS 53: § 72-1-41. L. 57: p. 458, § 1. C.R.S. 1963: § 72-1-41. L. 69: p. 527, §§ 3, 4. L. 92: (3) amended, p. 1423, § 3, effective July 1. L. 2000: (1)(b) amended, p. 1729, § 1, effective August 15.

Cross references: For the nonapplicability of subsection (3) to pure captive insurance companies, see § 10-6-130 (1).

10-3-103. Names of companies.

No domestic insurance company shall adopt the name of any existing company transacting a similar business nor any name so similar as to be calculated to mislead the public, but any domestic mutual or mutual assessment insurance company, upon complying with the terms and conditions of this title (except article 15), and article 14 of title 24, C.R.S., may be reorganized and reincorporated as a joint stock company under the same name by which it was incorporated as a mutual or assessment company, with the omission of the word "mutual", and it is unlawful for any other company to be incorporated or transact business under or by the name under which any such mutual or mutual assessment company was operating at the time of reincorporation.

Source: L. 13: p. 334, § 19. C.L. § 2489. CSA: C. 87, § 17. CRS 53: § 72-1-15. C.R.S. 1963: § 72-1-15. L. 92: Entire section amended, p. 1535, § 23, effective May 20. L. 2004: Entire section amended, p. 898, § 9, effective May 21. L. 2012: Entire section amended, (HB 12-1266), ch. 280, p. 1501, § 19, effective July 1.

10-3-104. Unauthorized companies - penalties.

[ Editor's note: This version of this section is effective until March 1, 2022. ] Except for reinsurance by an authorized insurer or insurance effected pursuant to the provisions of article 5 or article 15 of this title, it is unlawful for any person, company, or corporation in this state to procure, receive, or forward applications for insurance in, or to issue or to deliver policies for, any company not legally authorized to do business in this state, as provided in this title and article 14 of title 24, C.R.S. Any person violating the provisions of this section commits a class 1 misdemeanor and shall be punished as provided in section 18-1.3-501, C.R.S.

10-3-104. Unauthorized companies - penalties.

[ Editor's note: This version of this section is effective March 1, 2022. ] Except for reinsurance by an authorized insurer or insurance effected pursuant to the provisions of article 5 or article 15 of this title 10, it is unlawful for any person, company, or corporation in this state to procure, receive, or forward applications for insurance in, or to issue or to deliver policies for, any company not legally authorized to do business in this state, as provided in this title 10 and article 14 of title 24. Any person violating the provisions of this section commits a class 2 misdemeanor and shall be punished as provided in section 18-1.3-501.

Source: L. 13: p. 334, § 20. C.L. § 2490. CSA: C. 87, § 18. L. 49: p. 472, § 17. CRS 53: § 72-1-16. C.R.S. 1963: § 72-1-16. L. 92: Entire section amended, p. 1536, § 24, effective May 20. L. 2003: Entire section amended, p. 849, § 1, effective July 1. L. 2006: Entire section amended, p. 1490, § 9, effective June 1. L. 2012: Entire section amended, (HB 12-1266), ch. 280, p. 1502, § 20, effective July 1. L. 2021: Entire section amended, (SB 21-271), ch. 462, p. 3147, § 110, effective March 1, 2022.

Editor's note: Section 803(2) of chapter 462 (SB 21-271), Session Laws of Colorado 2021, provides that the act changing this section applies to offenses committed on or after March 1, 2022.

10-3-105. Certificate of authority to do business - companies prohibited - definitions.

1. Except pursuant to the provisions of article 5 of this title, no foreign or domestic insurance company shall transact any insurance business in this state, unless it first procures from the commissioner a certificate of authority stating that the requirements of the laws of this state have been complied with and authorizing it to do business. The certificate of authority shall expire on June 30 each year and shall be renewed annually if the company has continued to comply with the laws of the state.
2. Except as provided by subsection (3) of this section, no certificate of authority to transact any kind of insurance business in this state shall be issued or renewed to any company which is owned, or financially controlled in whole or in part, by another state of the United States, or by a foreign government, or by any political subdivision, instrumentality, or agency of either, unless such company was so owned, controlled, or constituted prior to January 1, 1955, and also authorized to do business in this state on or prior to January 1, 1955.
3. 1. The ownership or financial control, in part, of any insurer by any state of the United States, or by a foreign government, or by any political subdivision, instrumentality, or agency of either shall not restrict the commissioner from issuing, renewing, or continuing in effect the license of that insurer to transact in this state the kinds of insurance business for which that insurer is otherwise qualified under the provisions of this title and under its charter, if the insurer has satisfied the commissioner that:
      1. It is not subject to any form of subsidy;
      2. It does not engage in practices that discriminate in violation of section 24-34-402, C.R.S.;
      3. The ownership or financial control will not create the presence of any sovereign immunity in the insurer;
      4. Appropriate measures and controls exist to avoid security problems resulting from the insurer's access to confidential information and data of its insured; and
      5. The ownership or financial control will not result in substantial or undue influence being asserted over the insurer.
   2. The provisions of paragraph (a) of this subsection (3) are a clarification of the provisions of subsection (2) of this section and not a substantive change in the provisions of said subsection (2) as said subsection (2) existed prior to March 11, 1991.
4. 1. The commissioner may order an insurer to pay restitution to a person, if, after notice to the insurer and after a hearing held in accordance with sections 24-4-104 and 24-4-105, C.R.S., the commissioner finds that the insurer has violated this title or that the insurer is financially responsible for the unfair business practices of an insurance producer pursuant to section 10-3-131.
   2. As used in this subsection (4), "insurance producer" shall have the same meaning as set forth in section 10-2-103 (6).
   3. For the purposes of this subsection (4), "restitution" means benefits or moneys owed due to the regulated entity's violation of this title, including, but not limited to, costs and expenses for lost time from work and attorney fees.

Source: L. 13: p. 334, § 21(1). C.L. § 2491. CSA: C. 87, § 19. L. 49: p. 472, § 18. CRS 53: § 72-1-17. C.R.S. 1963: § 72-1-17. L. 91: (2) amended and (3) added, p. 1239, § 1, effective March 11. L. 92: (1) amended, p. 1536, § 25, effective July 1. L. 2008: (4) added, p. 585, § 2, effective August 5; (4)(c) amended, p. 2174, § 6, effective August 5.

Cross references: For acts which constitute transacting business by an unauthorized insurer, see § 10-3-903.

10-3-106. Deemed incorporated under corporation law.

All insurance companies having capital stock, incorporated under the laws of this state, are deemed to be incorporated under the general corporation laws of this state; but, excepting any provision of existing insurance laws which may purport to prescribe the law under which insurance companies may be or have been incorporated, no law or provision of law specially or expressly applicable to insurance companies or the business of insurance shall be in any way repealed, modified, or affected by this section.

Source: L. 33: p. 615, § 3. CSA: C. 87, § 53. CRS 53: § 72-1-51. C.R.S. 1963: § 72-1-51.

Cross references: For the general corporation law, see articles 101 to 117 of title 7.

10-3-107. Appointment of registered agent - commissioner agent for service of process.

1. Except pursuant to the provisions of article 5 of this title, no foreign insurance company, directly or indirectly, shall issue policies, take risks, or transact business in this state until it has first appointed, in writing, the commissioner to be the true and lawful attorney of such company in and for this state, upon whom all lawful process in any action or proceeding against the company may be served with the same effect as if the company existed in this state. Such power of attorney shall stipulate and agree, upon the part of the company, that any lawful process against the company that is served on said attorney, or in the commissioner's absence any employee in charge of the commissioner's office, shall be of the same legal force and validity as if served on the company and that the authority shall continue in force so long as any liability remains outstanding against the company in this state. A certificate of such appointment, duly certified and authenticated, shall be filed in the office of the commissioner, and copies certified by the commissioner shall be deemed sufficient evidence, and service upon such attorney shall be deemed sufficient service upon the principal. The certificate of appointment may be filed in an electronic format.
   1. (1.5) (a) The provisions of subsection (1) of this section shall not apply to any insurance company maintaining a home office or a regional home office in this state.
   2. Each insurance company maintaining a home office or regional home office in this state shall file with the commissioner the name of a person designated to receive service of process. The commissioner shall maintain a list of persons so designated and shall make information from such list available to any person upon request. Each company must report any change in the name of the person designated to receive service of process to the commissioner within ten days after making such change. The information required to be filed with the commissioner pursuant to this subsection (1.5) may be filed in an electronic format.
2. Whenever lawful process against any insurance company is served upon the commissioner, three copies shall be furnished, and he shall forthwith forward a copy of the process served on him by certified mail, postpaid, to the secretary of the company or, in case of companies of foreign countries, to the resident manager in this country, and he shall also forward a copy thereof to the general agent of said company in this state.

Source: L. 13: p. 339, § 22. C.L. § 2492. CSA: C. 87, § 20. L. 49: p. 473, § 19. CRS 53: § 72-1-33. C.R.S. 1963: § 72-1-33. L. 73: p. 847, § 1. L. 86: (2) amended, p. 554, § 2, effective July 1. L. 89: (2) amended, p. 436, § 4, effective July 1. L. 91: (2) amended, p. 1228, § 2, effective June 5; (1.5) added, p. 1243, § 4, effective July 1. L. 2004: (1) and (1.5)(b) amended, p. 1059, § 4, effective July 1.

10-3-108. File duly certified copy of charter.

Except pursuant to the provisions of article 5 of this title, no foreign insurance company shall transact any business in this state unless it first files in the office of the commissioner a duly certified copy of its charter, articles of incorporation, or deed of settlement, together with a statement, under oath, of the president and secretary, or other chief officers of such company, showing the condition of affairs of such company on the thirty-first day of December next preceding the date of such oath. The statement shall be in the same form and shall set forth the same particulars as the annual statement required by this title (except article 15) and article 14 of title 24, C.R.S. After filing its articles of incorporation or charter with the secretary of state, no insurance company shall be required to file its annual report or any other instrument, except amendments to said articles of incorporation or charter, in the office of the secretary of state or to pay to the secretary of state an annual corporation tax. The filings required pursuant to this section may be made in an electronic format.

Source: L. 13: p. 339, § 23. C.L. § 2493. CSA: C. 87, § 21. L. 49: p. 473, § 20. CRS 53: § 72-1-34. C.R.S. 1963: § 72-1-34. L. 92: Entire section amended, p. 1536, § 26, effective May 20. L. 2004: Entire section amended, p. 1060, § 5, effective July 1. L. 2012: Entire section amended, (HB 12-1266), ch. 280, p. 1502, § 21, effective July 1.

10-3-109. Reports, statements, assessments, and maintenance of records - publication - penalties for late filing, late payment, or failure to maintain.

1. Every insurance company doing business in this state, on or before the first day of March in each year, shall submit to the commissioner a report, signed and certified by its chief officers, of its condition on the preceding thirty-first day of December, which shall include a detailed statement of assets and liabilities, the amount and character of its business transacted, and moneys received and expended during the year, and any further details of expenditures, and such other information, to be included in the report or supplementary thereto, as the commissioner deems necessary. A synopsis of such statement, together with the commissioner's certificate of authority to transact business in this state, shall be published in some newspaper of general circulation, published at the state capital, for at least four insertions. Such publication shall be made within thirty days after such certificate of authority is issued, and a copy of the paper containing such publication shall be filed in the office of the commissioner. The commissioner shall revoke and refuse to reissue the certificate of authority of any insurance company failing or refusing to furnish the reports or other information requested by the commissioner as provided in this section. The report required pursuant to this subsection (1) may be filed in an electronic format.
2. Repealed.
3. If any entity regulated by the division of insurance fails to file any other document required by law or rules and regulations to be filed with the division of insurance or fails to maintain complaint records as required by law, the commissioner may assess a penalty not to exceed five hundred dollars for an initial violation and a penalty not to exceed five thousand dollars for any subsequent failure to comply with any such filing requirement or requirement to maintain records. The commissioner, by rule and regulation, may establish a schedule for the assessment of penalties as authorized in this subsection (3) based upon the frequency and severity of noncompliance.

Source: L. 13: p. 340, § 24. C.L. § 2494. CSA: C. 87, § 22. CRS 53: § 72-1-35. C.R.S. 1963: § 72-1-35. L. 92: Entire section amended, p. 1536, § 27, effective May 20. L. 2001: (2) amended, p. 1051, § 35, effective July 1. L. 2004: (1) amended, p. 1060, § 6, effective July 1. L. 2013: (2) amended, (HB 13-1115), ch. 338, p. 1970, § 3, effective May 28.

Editor's note: Subsection (2)(b) provided for the repeal of subsection (2), effective March 31, 2015. (See L. 2013, p. 1970 .)

Cross references: For financial statements, see § 10-3-208; for nondisclosure of reports during periods of supervision or conservatorship, see § 10-3-414.

10-3-110. Remuneration of company officials. (Repealed)

Source: L. 13: p. 354, § 52. C.L. § 2525. CSA: C. 87, § 67. CRS 53: § 72-3-14. C.R.S. 1963: § 72-3-14. L. 71: p. 718, § 1. L. 81: Entire section repealed, p. 524, § 1, effective March 27.

10-3-111. Violations - penalty.

[ Editor's note: This version of this section is effective until March 1, 2022. ] Except for violations of section 10-3-104 or article 15 of this title, any officer, director, stockholder, attorney, or agent of any corporation or association who violates any of the provisions of this title and article 14 of title 24, C.R.S., who participates in or aids, abets, or advises or consents to any such violation, and any person who solicits or knowingly receives any money or property in violation of said references, is guilty of a misdemeanor and, upon conviction thereof, shall be punished by imprisonment in the county jail for not more than one year and by a fine of not more than one thousand dollars, and any officer aiding or abetting in any contribution made in violation of said references is liable to the company or association for the amount so contributed. No person shall be excused from attending and testifying or producing any books, papers, or other documents, before any court, upon any investigation, proceeding, or trial, for a violation of any of the provisions of said references upon the ground or for the reason that the testimony or evidence, documentary or otherwise, required of such person may tend to incriminate or degrade him or her; but no person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he or she may so testify or produce evidence, documentary or otherwise, and no testimony so given or produced shall be used against him or her upon any criminal investigation or proceeding.

10-3-111. Violations - penalty.

[ Editor's note: This version of this section is effective March 1, 2022. ] Except for violations of section 10-3-104 or article 15 of this title 10, any officer, director, stockholder, attorney, or agent of any corporation or association who violates any of the provisions of this title 10 and article 14 of title 24, who participates in or aids, abets, or advises or consents to any such violation, and any person who solicits or knowingly receives any money or property in violation of said references commits a class 2 misdemeanor, and any officer aiding or abetting in any contribution made in violation of said references is liable to the company or association for the amount so contributed. No person shall be excused from attending and testifying or producing any books, papers, or other documents, before any court, upon any investigation, proceeding, or trial, for a violation of any of the provisions of said references upon the ground or for the reason that the testimony or evidence, documentary or otherwise, required of such person may tend to incriminate or degrade him or her; but no person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he or she may so testify or produce evidence, documentary or otherwise, and no testimony so given or produced shall be used against him or her upon any criminal investigation or proceeding.

Source: L. 13: p. 354, § 53. C.L. § 2526. CSA: C. 87, § 68. CRS 53: § 72-3-15. C.R.S. 1963: § 72-3-15. L. 83: Entire section amended, p. 448, § 1, effective March 15. L. 92: Entire section amended, p. 1537, § 28, effective May 20. L. 2003: Entire section amended, p. 849, § 2, effective July 1. L. 2005: Entire section amended, p. 761, § 12, effective June 1. L. 2012: Entire section amended, (HB 12-1266), ch. 280, p. 1502, § 22, effective July 1. L. 2021: Entire section amended, (SB 21-271), ch. 462, p. 3147, § 111, effective March 1, 2022.

Editor's note: Section 803(2) of chapter 462 (SB 21-271), Session Laws of Colorado 2021, provides that the act changing this section applies to offenses committed on or after March 1, 2022.

10-3-112. Directors - terms - election - conflicts of interest - recovery of profits.

1. 1. The business of insurance companies incorporated under the laws of this state shall be managed by a board of directors consisting of such number of directors, not less than three, as may be prescribed by the articles of incorporation or bylaws, and said directors shall hold office until their successors are duly elected and qualified. Such directors shall be nominated and elected in the manner prescribed by the bylaws of the company not inconsistent with the laws of this state. No director may serve who has been convicted of fraud involving any financial institution or of a felony, but the commissioner may waive this provision regarding a felony if he or she determines that the particular felony does not jeopardize the person's ability to act as a director.
   2. 1. Each executive officer and director of a domestic company applying for a certificate of authority to do business in Colorado shall submit a set of fingerprints to the commissioner. The commissioner shall forward such fingerprints to the Colorado bureau of investigation for the purpose of conducting a state and national fingerprint-based criminal history record check utilizing records of the Colorado bureau of investigation and the federal bureau of investigation. Only the actual costs of such record check must be borne by the employer.
      2. When the results of a fingerprint-based criminal history record check of a person performed pursuant to this subsection (1)(b) reveal a record of arrest without a disposition, the commissioner shall require that person to submit to a name-based criminal history record check, as defined in section 22-2-119.3 (6)(d).
2. Every domestic insurance company shall report within thirty days to the commissioner any change in its executive officers or directors, including in its report a statement of the business and professional affiliations of any new executive officer or director. For purposes of this subsection (2), the term "executive officer" includes only the following: Chairman of the board of directors, president, executive vice-president, secretary, and treasurer.
3. No director, officer, or employee having any authority in the investment or disposition of the funds of a domestic insurance company shall accept, except on behalf of the company, or be the beneficiary of any fee, brokerage, gift, or other emolument because of any investment, loan, deposit, purchase, sale, payment, or exchange made by or for the company; but a director who is not otherwise an officer or employee of the company may receive reasonable compensation for necessary services performed for sales or purchases made to or for the company in the ordinary course of its business and in the usual private professional or business capacity of such director.
4. Any profit or gain received by or on behalf of any person in violation of subsection (3) of this section shall inure to and be recoverable by the company. Suit to recover such profit may be instituted in any court of competent jurisdiction by the company, or by any stockholder of the company in its name and in its behalf if the company fails or refuses to bring such suit within sixty days after request in writing or fails diligently to prosecute the same thereafter; but no such suit shall be brought more than two years after the date such profit was realized.

Source: L. 13: p. 346, § 31. C.L. § 2502. L. 33: p. 614, § 1. CSA: C. 87, § 29. CRS 53: § 72-1-43. C.R.S. 1963: § 72-1-43. L. 67: p. 163, § 1. L. 69: p. 510, § 1. L. 2002: (1) amended, p. 970, § 1, effective June 1. L. 2019: (1)(b) amended, (HB 19-1166), ch. 125, p. 537, § 2, effective April 18.

10-3-113. Increase of capital.

1. Any such corporation organized and duly licensed by the commissioner to conduct an insurance business may sell additional stock or increase its capital for the purpose, in the manner, and to the extent prescribed by law, but the expense incurred in connection with such sale shall not exceed twenty percent of the amount realized from the sale of its capital stock, whether in cash or notes, and said expense shall be paid from surplus funds of the corporation.
2. The provisions of this title (except article 15) and article 14 of title 24, C.R.S., also apply in the formation and authorization of domestic insurance companies formed upon the mutual plan, and to associations formed upon the assessment plan, that are organized with a guaranty fund in lieu of capital as provided in said references.

Source: L. 13: p. 346, § 2. L. 15: p. 270, § 1. L. 21: p. 457, § 5. C.L. § 2503. CSA: C. 87, § 30. L. 41: p. 502, § 2. CRS 53: § 72-1-44. L. 57: p. 758, § 9. C.R.S. 1963: § 72-1-44. L. 92: (2) amended, p. 1538, § 29, effective May 20. L. 2004: (2) amended, p. 898, § 10, effective May 21. L. 2012: (2) amended, (HB 12-1266), ch. 280, p. 1503, § 23, effective July 1.

10-3-114. Violations - penalty.

[ Editor's note: This version of this section is effective until March 1, 2022. ] Any officer, director, clerk, employee, or agent of any such company who receives or pays out, or orders the payment of, any money, or incurs any obligation for the payment of money, in violation of the terms of section 10-3-113 is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than five hundred dollars, or by imprisonment in the county jail for a term of not more than six months, or by both such fine and imprisonment.

10-3-114. Violations - penalty.

[ Editor's note: This version of this section is effective March 1, 2022. ] Any officer, director, clerk, employee, or agent of any such company who receives or pays out, or orders the payment of, any money, or incurs any obligation for the payment of money, in violation of the terms of section 10-3-113 commits a class 2 misdemeanor.

Source: L. 13: p. 346, § 33. C.L. § 2504. CSA: C. 87, § 31. CRS 53: § 72-1-45. C.R.S. 1963: § 72-1-45. L. 2021: Entire section amended, (SB 21-271), ch. 462, p. 3147, § 112, effective March 1, 2022.

Editor's note: Section 803(2) of chapter 462 (SB 21-271), Session Laws of Colorado 2021, provides that the act changing this section applies to offenses committed on or after March 1, 2022.

10-3-115. License required of foreign companies. (Repealed)

Source: L. 13: p. 347, § 34. C.L. § 2505. CSA: C. 87, § 32. CRS 53: § 72-1-46. C.R.S. 1963: § 72-1-46. L. 92: Entire section repealed, p. 1538, § 30, effective May 20.

10-3-116. Sale of stock without license - penalty. (Repealed)

Source: L. 13: p. 347, § 35. C.L. § 2506. CSA: C. 87, § 33. CRS 53: § 72-1-47. C.R.S. 1963: § 72-1-47. L. 92: Entire section repealed, p. 1538, § 31, effective May 20.

10-3-117. License automatically extended - when.

When the annual statement of an insurance company licensed to do business in this state has been filed and the company's check or cash for the amount of all fees and taxes required has been tendered, the company's license to do business in this state shall be automatically extended until the commissioner refuses to relicense such company, and, when a check or cash for the fee has been tendered by the company for renewal of an agent's license, the license shall automatically be extended until the commissioner refuses to renew the license.

Source: L. 25: p. 316, § 6. CSA: C. 87, § 47. CRS 53: § 72-2-7. C.R.S. 1963: § 72-2-6.

Cross references: For statements generally, see § 10-3-109; for financial statements, see § 10-3-208.

10-3-118. Reinsurance - conditions - credit for reinsurance. (Repealed)

Source: L. 25: p. 318, § 10. CSA: C. 87, § 51. L. 51: p. 488, § 1. CRS 53: § 72-2-12. C.R.S. 1963: § 72-2-10. L. 71: p. 707, § 1. L. 79: Entire section R&RE, p. 380, § 1, effective May 25. L. 85: (7)(a)(IV) added, p. 378, § 1, effective July 1. L. 86: (6)(c) and (6)(d) added, p. 554, § 3, effective July 1. L. 89: (6)(c) and (6)(d) amended, p. 436, § 5, effective July 1. L. 91: (6) amended, p. 1229, § 3, effective June 5. L. 92: Entire section amended, p. 1539, § 32, effective May 20. L. 95: (5)(d)(I) amended, p. 489, § 2, effective May 16. L. 2003: (5)(d)(I), IP(6), and (6)(c) amended, p. 615, § 8, effective July 1. L. 2005: Entire section amended, p. 552, § 1, effective August 8. L. 2014: Entire section repealed, (HB 14-1315), ch. 295, p. 1217, § 3, effective January 1, 2015.

10-3-119. Application for receivership. (Repealed)

Source: L. 25: p. 319, § 11. CSA: C. 87, § 52. CRS 53: § 72-2-13. L. 63: p. 290, § 8. C.R.S. 1963: § 72-2-11. L. 92: Entire section repealed, p. 1424, § 4, effective July 1.

10-3-120. Investments of officers, directors, and principal stockholders.

1. 1. Every person who is directly or indirectly the beneficial owner of more than ten percent of any class of equity security of a domestic stock insurance company or who is a director or an officer of such company shall file in the office of the commissioner within ten days after the person becomes such beneficial owner, director, or officer, a statement, in such form as the commissioner may prescribe, of the amount of all classes of equity securities of such company of which the person is the beneficial owner and within ten days after the close of each calendar month thereafter, if there has been a change in such ownership during such month, shall file in the office of the commissioner a statement, in such form as the commissioner may prescribe, indicating ownership at the close of the calendar month and such changes in ownership as have occurred during such calendar month.
   2. (Deleted by amendment, L. 96, p. 111 , § 1, effective March 25, 1996.)
2. For the purpose of preventing the unfair use of information which is obtained by such beneficial owner, director, or officer by reason of his relationship to such company, any profit realized by him from any purchase and sale, or any sale and purchase, of any equity security of such company within any period of less than six months, unless such equity security was acquired in good faith in connection with a debt previously contracted, shall inure to and be recoverable by the company, irrespective of any intention on the part of such beneficial owner, director, or officer in entering into such transaction of holding the equity security purchased or of not repurchasing the equity security sold for a period exceeding six months. Suit to recover such profit may be instituted at law or in equity in any court of competent jurisdiction by the company or by the owner of any security of the company in the name and in behalf of the company if the company fails or refuses to bring such suit within sixty days after request or fails diligently to prosecute the same thereafter, but no such suit shall be brought more than two years after the date such profit was realized. This subsection (2) shall not be construed to cover any transaction where such beneficial owner was not such both at the time of the purchase and sale, or the sale and purchase, of the equity security involved, or any transaction which the commissioner may by rules and regulations exempt as not comprehended within the purpose of this subsection (2).
3. It is unlawful for any such beneficial owner, director, or officer, directly or indirectly, to sell any equity security of such company if the person selling the equity security or his principal either does not own the equity security sold, or, if owning the equity security, does not deliver it against such sale within twenty days thereafter, or does not within five days after such sale deposit it in the mails or other usual channels of transportation; but no person is deemed to have violated this subsection (3) if he proves that, notwithstanding the exercise of good faith, he was unable to make such delivery or deposit within such time, or that to do so would cause undue inconvenience or expense.
4. The provisions of subsection (2) of this section shall not apply to any purchase and sale or sale and purchase, and the provisions of subsection (3) of this section shall not apply to any sale of an equity security not then or theretofore held by him in an investment account by a dealer in the ordinary course of his business and incident to the establishment or maintenance by him of a primary or secondary market, otherwise than on an exchange, as presently defined in the federal "Securities Exchange Act of 1934", as amended, for such security.
5. The provisions of this section shall not apply to foreign or domestic arbitrage transactions unless made in contravention of such rules and regulations as the commissioner may adopt in order to carry out the purposes of this section.
6. The term "equity security" means any stock or similar security; or any security convertible, with or without consideration, into such a security, or carrying any warrant or right to subscribe to or purchase such a security; or any such warrant or right; or any other security which the commissioner deems to be of similar nature and considers necessary or appropriate, by such rules and regulations as he may prescribe in the public interest or for the protection of investors, to treat as an equity security.
7. The provisions of this section shall not apply to equity securities of a domestic stock insurance company if:
   1. Such equity securities are registered, or are required to be registered, pursuant to section 12 of the federal "Securities Exchange Act of 1934", as amended; or
   2. Such domestic stock insurance company does not have any class of its equity securities held of record by one hundred or more persons on the last business day of the year next preceding the year in which equity securities of the company would be subject to the provisions of this section, except for the provisions of this paragraph (b).

Source: L. 65: p. 760, § 1. C.R.S. 1963: § 72-2-17. L. 95: (1) repealed, p. 196, § 7, effective April 13; (1) RC&RE, p. 718, § 1, effective May 23. L. 96: (1) amended, p. 111, § 1, effective March 25. L. 2008: (4) and (7)(a) amended, p. 1880, § 10, effective August 5.

Cross references: For the "Securities Exchange Act of 1934", see 15 U.S.C. § 78a et seq.

10-3-121. Regulation of proxies, consents, or authorizations.

1. The purpose of this section is to regulate the solicitation of proxies, consents, or authorizations by domestic stock insurers having one hundred or more stockholders of record in accordance with the intent of congress as expressed in the "Securities Acts Amendments of 1964", by declaring unlawful certain solicitation practices and providing for the regulation thereof.
2. No person shall, in contravention of such rules and regulations as the commissioner may prescribe as necessary or appropriate in the public interest or for the protection of investors, solicit, or permit the use of his name to solicit, any proxy or consent or authorization in respect of any security of a domestic stock insurer having one hundred or more stockholders of record.
3. Unless proxies, consents, or authorizations in respect of a security of a domestic stock insurer are solicited by or on behalf of the management of the insurer from the holders of record of such security in accordance with the rules and regulations prescribed under subsection (2) of this section, prior to any annual or other meeting of the holders of such security, such insurer shall, in accordance with the rules and regulations prescribed by the commissioner, file with the commissioner and transmit to all holders of record of such security information substantially equivalent to the information which would be required to be transmitted if a solicitation were made.
4. This section is applicable to all domestic stock insurers having one hundred or more stockholders of record; except that this section shall not apply to any insurer if ninety-five percent or more of its stock is owned or controlled by a parent or an affiliated insurer and the remaining shares are held by less than five hundred stockholders. A domestic stock insurer that files with the securities and exchange commission forms of proxies, consents, and authorizations complying with the requirements of the federal "Securities Exchange Act of 1934", as amended, is exempt from the provisions of this section.
5. The term "person" as used in this section includes a natural person, corporation, partnership, and association.
6. Repealed.

Source: L. 65: p. 763, § 1. C.R.S. 1963: § 72-2-18. L. 95: Entire section repealed, p. 196, § 8, effective April 13; entire section RC&RE, p. 718, § 2, effective May 23. L. 96: (6) repealed, p. 95, § 2, effective March 25. L. 2008: (4) amended, p. 1880, § 11, effective August 5.

Cross references: For the "Securities Acts Amendments of 1964" and the "Securities Exchange Act of 1934", see 15 U.S.C. § 78a et seq.

10-3-122. Duties of foreign companies.

Any foreign life or accident insurance company doing business in the state of Colorado, if the insurance contract is made in this state, shall pay its obligations when same are due and payable through its agent in the county where the contract was made, or at the office of its general agent within this state, after approval by the proper officers at the home office of the company, upon presentation of the insurance contract and proofs required thereunder by the insured, assigns, or beneficiaries. This insurance contract is deemed to be made and payable in the state of Colorado, if made through an authorized agent of such insurance company within this state, irrespective of where the insurance contract may be written.

Source: L. 13: p. 357, § 58. C.L. § 2531. CSA: C. 87, § 75. CRS 53: § 72-3-22. C.R.S. 1963: § 72-3-22.

Cross references: For life insurance generally, see article 7 of this title 10.

10-3-123. Assessment accident associations.

1. Every contract whereby a benefit is to accrue to a party named therein, upon the accidental death or physical disability from accident or sickness of a person, which benefit is in any degree conditioned upon the collection of an assessment upon persons holding similar contracts, is deemed a contract of accident or casualty insurance upon the assessment plan, and the business involving the issuance of such contract shall be carried on in this state only by duly authorized corporations, which are subject to the provisions and requirements of this section and the general laws governing insurance companies in this state, except as otherwise provided in this section; but nothing in this section shall be construed as applicable to organizations which conduct their business as fraternal societies, on the lodge system, or to organizations which do not employ paid agents in soliciting business or limit their certificate holders to a particular order or fraternity.
2. Twenty-five or more persons who are citizens of this state may form a corporation to carry on the business of casualty insurance on the assessment plan, but no such corporation shall begin to do business until a guaranty fund of at least ten thousand dollars is provided and deposited, in cash or in such securities as are permitted by law in the case of stock companies, with the commissioner under the conditions named in this title (except article 15) and article 14 of title 24, C.R.S. When this is done and at least two hundred persons have subscribed in writing to be insured, and when each has paid in at least one monthly assessment or premium, the commissioner, if the laws have been complied with, shall issue a certificate of authority for such corporation, which authorizes it to commence business. The word "association" shall be used in the title or name of all corporations organized under this section instead of the word "company".
3. Every policy or indemnity certificate issued by any casualty corporation doing business in this state shall show, in plain and legible print at the top and on the face of the same, these words: "Incorporated on the assessment plan".
4. There shall also be printed plainly and legibly in every such policy or certificate issued the minimum and maximum limits of the contingent mutual liability of the person to whom the policy is issued, which limits and the amount of liability, in the case of corporations incorporated under the Colorado laws, shall be fixed by the bylaws, and the rule shall be uniform. Such policies or certificates shall also specify the minimum sum of money to be paid upon each contingency insured against and the number of days after satisfactory proof of the happening of such contingency at which such payment shall be made. Upon the occurrence of such contingency, unless the contract has been voided by fraud or by breach of its conditions, the association is obligated to the beneficiary for such payment at the time and to the amount specified in the policy or certificate, and this indebtedness shall be a lien upon all the property, effects, and bills receivable of the association in this state, with priority over all indebtedness thereafter incurred, but the statement of said minimum sum shall not invalidate the rights of the party insured from receiving any further amount above such minimum sum that is based upon membership and to which he is entitled by the provisions of his policy.
5. Any corporation organized under the authority of any other state or government to issue policies or certificates of casualty insurance on the assessment plan, as a condition precedent to transacting business in this state, shall pay such fees and comply with the same requirements as exacted of stock casualty insurance companies of other states or countries, as provided by this title (except article 15) and article 14 of title 24, C.R.S., and thereafter be subject to the same general laws and penalties of this title, unless otherwise provided in this section, and it shall deposit with the commissioner or with the proper official of some other state, for the protection of all its policyholders, a sum not less than that required to be deposited by domestic casualty insurance companies organized upon the mutual assessment plan. Such corporation shall also file with the commissioner a copy of its policies or certificates and applications therefor, for approval by the commissioner, and a sworn statement from the proper officers of such corporation that they have received a copy of this section, and shall be governed thereby in issuing policies or certificates in this state. The commissioner may thereupon issue or renew the authority of such corporation to do business in this state.
6. The money or other benefit, charity, relief, or aid to be paid or provided or rendered by any corporation authorized to do casualty insurance on the assessment plan shall not be liable to attachment or other process and shall not be seized, taken, appropriated, or applied by any legal or equitable process, nor by operation of law, to pay any debts or liability of a policy or certificate holder, or any beneficiary named therein.
7. Any corporation doing a casualty insurance business in this state on April 15, 1913, that is incorporated to do business on the assessment plan may reincorporate under the provisions of this title (except article 15) and article 14 of title 24, C.R.S., but nothing in said references shall be construed as requiring any such corporation to reincorporate, and any such corporation may continue to exercise all rights, powers, and privileges conferred by said references, or its articles of incorporation not inconsistent with this subsection (7).

Source: L. 13: p. 369, § 75. C.L. § 2548. CSA: C. 87, § 92. CRS 53: § 72-3-26. C.R.S. 1963: § 72-3-25. L. 92: (2), (5), and (7) amended, p. 1544, § 33, effective May 20. L. 2004: (2), (5), and (7) amended, p. 899, § 11, effective May 21. L. 2012: (2), (5), and (7) amended, (HB 12-1266), ch. 280, p. 1503, § 24, effective July 1.

10-3-124. Advertisement for insurance - requirement. (Repealed)

Source: L. 73: p. 836, § 1. C.R.S. 1963: § 72-1-65. L. 77: Entire section repealed, p. 502, §§ 7, 8, effective January 1, 1978.

10-3-125. Redomestication of foreign insurers.

1. Any foreign insurer which is authorized or which may be authorized to do business in this state for the purpose of writing insurance may become a domestic insurer by complying with all of the requirements of law relative to the organization and licensing of a domestic insurer of the same type. Said domestic insurer shall be entitled to like certificates and licenses to transact business in this state and shall be subject to the authority and jurisdiction of this state.
2. Any domestic insurer may, upon the approval of the commissioner, transfer its domicile to any other state in which it is authorized to transact the business of insurance and, upon such a transfer, shall cease to be a domestic insurer and shall be admitted to this state if qualified as a foreign insurer. The commissioner shall approve any such proposed transfer unless he determines that such transfer is not in the interest of the policyholders of this state.
3. Any foreign insurance company admitted or which may be admitted to transact business in this state may, upon proper notice to the commissioner, change its domicile by merger, consolidation, or otherwise to another foreign state without interruption of its license and without reapplying as a foreign insurer if:
   1. The change in domicile does not result in a reduction in the company's assets or surplus below the requirements for admission as a foreign insurer; and
   2. There is no substantial change in the lines of insurance to be written by the company; and
   3. The change in domicile has been approved by the supervising regulatory officials of both the former and new state of domicile.
4. The certificate of authority, the agents' appointments and licenses, and the rates and other items which the commissioner allows, in his discretion, which are in existence at the time any insurer transfers its corporate domicile to this or any other state by merger, consolidation, or any other lawful method shall continue in full force and effect upon such transfer if such insurer remains duly qualified to transact the business of insurance in this state. All outstanding policies of any transferring insurer shall remain in full force and effect. In the event of a company name change, all outstanding policies shall be endorsed with the company's new name. Every transferring insurer shall file new policy forms with the commissioner on or before the effective date of the transfer. Such insurers may use existing policy forms with appropriate endorsements if allowed by and under such conditions as approved by the commissioner. Every such transferring insurer shall notify the commissioner of the details of the proposed transfer and shall file promptly any resulting amendments to corporate documents filed or required to be filed with the commissioner.

Source: L. 89: Entire section added, p. 443, § 1, effective April 19.

10-3-126. Alien insurers.

1. Any alien insurer, as defined in section 10-3-301 (1), may be admitted to do business in this state by qualifying and establishing an administrative office in this state and maintaining its corporate and insurance records in the United States for insurance of risks primarily in the United States of America, its territories, and its possessions and by complying with all of the requirements of law related to the organization and licensing of a domestic insurer of the same type.
2. Any alien insurer, as defined in section 10-3-301 (1), which is authorized to do business (whether as an admitted company or nonadmitted company) for the purpose of writing insurance may become a domestic insurer by complying with all of the requirements of law relative to the organization and licensing of a domestic insurer of the same type and by making its principal place of business at a place in this state. Said domestic insurer shall be entitled to like certificates and licenses to transact business in this state and shall be subject to the authority and jurisdiction of this state.

Source: L. 89: Entire section added, p. 444, § 1, effective April 19.

10-3-127. Domicile of nonprofit hospital, medical-surgical, and health services corporations.

1. A corporation organized under the laws of another state for the purposes set forth in section 10-16-302 may qualify under parts 1 and 3 of article 16 of this title to do business in this state as a nonprofit hospital, medical-surgical, and health services corporation, and upon notice to the commissioner may change its domicile by merger, consolidation, or otherwise under the procedures of section 10-3-125 for insurers. Except as specified in this section, any such corporation shall comply with all provisions of parts 1 and 3 of article 16 of this title with respect to the business of the corporation in this state.
2. The provisions of sections 10-16-304 (1) and 10-16-305 (1) shall apply to a foreign corporation to the extent such provisions do not conflict with the governing laws of the corporation's domicile.

Source: L. 89: Entire section added, p. 444, § 1, effective April 19. L. 92: Entire section amended, p. 1723, § 3, effective July 1.

10-3-128. Domestic insurer - requirement to maintain offices in this state.

1. Before granting the initial certificate of authority to an applicant to become a domestic insurer, the commissioner shall be satisfied by proper evidence that:
   1. The insurer's books and records are located or maintained in this state or are readily accessible to the examiners of this state; and
   2. The grant of a certificate of authority as a domestic insurer will provide benefit to the state of Colorado through either significant economic development or through the offering of insurance coverage desired by and beneficial to the Colorado insurance buying public.
2. No later than January 1, 1992, any domestic insurer licensed in this state prior to July 1, 1991, shall file a plan for compliance with this section.
3. The commissioner may modify or waive the requirements of this section for cause on a case by case basis.
4. The commissioner may promulgate such rules and regulations as are necessary to carry out the provisions of this section.

Source: L. 91: Entire section added, p. 1243, § 5, effective July 1.

10-3-129. Prohibition - display of social security number - insurance companies.

1. An insured may require that an insurance company or insurer doing business in Colorado not display the insured's social security number on his or her insurance identification card or proof of insurance card. If an insured makes the request, the insurance company or insurer shall reissue the insured an insurance identification card or proof of insurance card that does not display the insured's social security number.
2. After January 1, 2006, upon issuance or renewal of an insurance policy, an insurance company or insurer doing business in Colorado shall not issue an insurance identification card or proof of insurance card that displays the insured's social security number.

Source: L. 2004: Entire section added, p. 1959, § 4, effective August 4.

10-3-130. Certificate of authority application process - tracking compliance with uniform process.

The division shall make every effort to comply with the uniform process established and endorsed by the national association of insurance commissioners for applications for certificates of authority, including compliance with established deadlines for evaluating, approving, and denying applications for certificates of authority. The division shall track all aspects of the certificate of authority application process in order to monitor compliance with the uniform standards and to enable comparison with other states for purposes of determining areas for improvement.

Source: L. 2006: Entire section added, p. 76, § 2, effective March 27.

10-3-131. Acts of producers - responsibility of insurer - definitions.

1. An insurer authorized to conduct business in this state, who knew or should have known about the unfair business practices of an insurance producer, may be financially responsible for the unfair business practices of the insurance producer, who, while acting on behalf of the insurer, engaged in unfair business practices that violate this title.
2. As used in this section, "insurance producer" shall have the meaning set forth in section 10-2-103.

Source: L. 2008: Entire section added, p. 586, § 3, effective August 5.

10-3-201. Cash capital - guaranty fund - deposit.

1. 1. 1. to (IV) Repealed. (1) (a) (I) to (IV) Repealed.

      (V) No insurance company, issued a certificate of authority on or after July 1, 1995, shall be permitted to do any business in this state, unless, in addition to the other requirements of law, it possesses the minimum capital or guaranty fund and an accumulated surplus in the form of cash or marketable securities which combined are at least equal to:

TYPE OF COMPANY TOTAL CAPITAL OR GUARANTY FUND PLUS SURPLUS Life ................................... $1,500,000.00 Fire ................................... 1,500,000.00 Casualty ............................ 1,500,000.00 Multiple Line .................... 2,000,000.00 Title Insurance .................. 750,000.00 (b) To avoid situations where an insurer's transactions would create undue financial risks to its enrollees, subscribers, or policyholders or to the people of this state, the regulations specified in this paragraph (b) are authorized. The commissioner may by regulation establish standards consistent with those of the national association of insurance commissioners which require any insurer to maintain a greater minimum surplus level than the specific dollar minimums established by paragraph (a) of this subsection (1). Such minimum surplus level shall reflect the type, volume, and nature of the insurance business being transacted and the type of entity for which the surplus levels are being established. Such regulation may additionally require the submission of an opinion by a qualified actuary which states whether or not the surplus level of the entity is sufficient for the authority requested. (c) Companies already licensed on July 1, 1991, may continue to transact business and shall have until December 31, 1992, to increase their total capital or guaranty fund and surplus or file a plan with the commissioner. The commissioner may, upon showing of adequate justification by the company, extend the date for the company to attain the new levels specified in paragraph (a) of this subsection (1), or waive or reduce such new levels. (d) An insurance company subject to this section shall increase its capital and surplus to those limits set forth in paragraph (a) of this subsection (1) within thirty days after any change of control of the insurance company. Any extension granted pursuant to paragraph (c) of this subsection (1) shall be automatically rescinded in the event of such a change of control. The insurance company is not required to increase its capital and surplus if the transfer of ownership occurs because of death and the ownership is transferred solely to one or more natural persons, each of whom would be an heir of the decedent if the decedent had died intestate. (2) The cash or securities representing the minimum capital or guaranty fund and surplus required by paragraph (a) of subsection (1) of this section shall be deposited, in the case of domestic companies, with the commissioner in the manner provided by law and, in the case of foreign or alien companies, with the commissioner or with the duly authorized officer of some other state of the United States; except that the guaranty fund of mutual companies shall be construed to include deposits held for the benefit of policyholders as provided in this title (except article 15) and article 14 of title 24, C.R.S. (3) The deposit shall be held by the commissioner for the benefit of all policyholders wherever located. For a foreign or alien insurer to be allowed credit for deposits in other jurisdictions, such deposits must be held for the benefit of all policyholders wherever located and not solely or with preference for those in the depository jurisdiction.

Source: L. 13: p. 340, § 25. C.L. § 2495. CSA: C. 87, § 23. L. 51: p. 466, § 1. CRS 53: § 72-1-36. L. 63: p. 570, § 1. C.R.S. 1963: § 72-1-36. L. 69: p. 527, § 2. L. 79: (1)(c) and (1)(d) added, p. 359, § 4, effective July 1. L. 91: (1) and (2) R&RE, p. 1244, § 6, effective July 1. L. 92: (1)(b) amended, p. 1766, § 2, effective March 20; (2) amended, p. 1545, § 34, effective May 20. L. 2004: (2) amended, p. 899, § 12, effective May 21. L. 2012: (2) amended, (HB 12-1266), ch. 280, p. 1504, § 25, effective July 1.

Editor's note: Subsections (1)(a)(I)(B), (1)(a)(II)(B), (1)(a)(III)(B), and (1)(a)(IV)(B) provided for the repeal of subsections (1)(a)(I), (1)(a)(II), (1)(a)(III), and (1)(a)(IV), respectively, effective July 1, 1992. (See L. 91, p. 1244 .)

Cross references: For deposit and safekeeping of securities, see § 10-3-210.

10-3-202. Surplus ascertained - disposition of.

Surplus of domestic insurance companies shall be ascertained by offsetting as a liability against the company's admitted assets the par value of its outstanding capital stock, if any, its reserve liability, and its current obligations of every kind. The excess of said admitted assets over said liabilities shall be the company's surplus. Surplus of domestic stock insurance companies belongs to their stockholders, and such part of the surplus may be apportioned or paid to policyholders, beneficiaries, and annuity and supplementary contract holders as the companies may from time to time determine.

Source: L. 25: p. 312, § 1. CSA: C. 87, § 42. CRS 53: § 72-2-2. C.R.S. 1963: § 72-2-1. L. 69: p. 491, § 2. L. 2004: Entire section amended, p. 1061, § 7, effective July 1.

10-3-203. Additional deposits - withdrawals.

Any domestic insurance company depositing its insurance reserves with the commissioner under the optional reserve deposit law, section 10-7-101, at its option and in addition to its insurance reserves deposit, may also deposit with the commissioner approved securities not less in amount than the reserve required to mature any or all of the company's other contractual obligations of every kind designated at the time the deposits are made. Such additional deposits shall be to secure the payment of such other contractual obligations so designated. In determining the amount of deposit to be maintained with the commissioner on account of insurance or other reserves, he shall make proper deductions from the mathematical reserves for all indebtedness to the company on account of each policy and each contractual obligation not exceeding the reserve thereon, and for deferred and uncollected premiums on the policies and for the reserve on such part of each policy as may be reinsured as provided by law. Any amount at any time on deposit in excess of the amount required may be withdrawn by the depositing company. Whenever any such company makes an application to withdraw any excess deposit, the commissioner may accept the estimate or calculation of the company of such reserves or, at his option, may have a calculation or estimate thereof made for said purpose or an appraisal of the depositing company's securities, or both, at the expense of the company so applying, at such reasonable expense as may be agreed to by the company.

Source: L. 31: p. 421, § 1. CSA: C. 87, § 55. CRS 53: § 72-3-3. C.R.S. 1963: § 72-3-3.

10-3-204. Payment of dividends.

1. The amount of dividend payments by any domestic insurance company is wholly within the discretion of its directors or of the duly constituted executive committee thereof. No dividend shall be paid except from the company's surplus.
2. It is unlawful for the directors, trustees, managers, or officers of any domestic insurance company, directly or indirectly, to make or pay any dividends or pay any interest, bonus, or other allowance in lieu of dividends, other than premium refunds and deductions guaranteed, except from the company's surplus and from profits arising from the company's business. Any person who is found guilty of violating any provision of this section shall be punished by a fine of not more than one thousand dollars.

Source: L. 25: p. 313, § 2. L. 33: p. 615, § 2. CSA: C. 87, § 43. CRS 53: § 72-2-3. C.R.S. 1963: § 72-2-2.

10-3-205. Manner of paying surplus.

Every policyholder on all participating policies issued shall be permitted at the time the first dividend is declared to select from among the options set forth in the policy the manner and method of the payment of the surplus to be annually apportioned to his policy.

Source: L. 13: p. 353, § 49. C.L. § 2522. CSA: C. 87, § 63. CRS 53: § 72-3-10. C.R.S. 1963: § 72-3-10.

10-3-206. Security deposits - certificates.

1. The commissioner shall receive and hold on deposit, in the manner provided in this law, the securities of domestic companies that are deposited by any such company under the provisions of this title (except article 15) and article 14 of title 24, C.R.S., for the purpose of securing policyholders or to comply with any similar law of another state to enable the company to transact business in such state. All securities so offered for deposit shall belong to and be the sole property of such company and shall be free and clear of any claims whatsoever, and the commissioner shall determine the same by proper inquiry.
2. The commissioner shall furnish to such company a certificate, under his hand and official seal, certifying that he holds said securities in trust for the benefit of the policyholders of such company.

Source: L. 13: p. 325, § 10. L. 21: p. 454, § 2. C.L. § 2480. CSA: C. 87, § 9. CRS 53: § 72-1-9. C.R.S. 1963: § 72-1-9. L. 92: (1) amended, p. 1545, § 35, effective May 20. L. 2004: (1) amended, p. 900, § 13, effective May 21. L. 2012: (1) amended, (HB 12-1266), ch. 280, p. 1504, § 26, effective July 1.

Cross references: For procedure for deposit and commissioner's duty to safeguard, see § 10-3-210.

10-3-207. Fees paid by insurance companies.

1. Every entity regulated by the division in this state shall pay the following fees to the division:
   1. For investigating and processing an initial application for authorization or licensure as a foreign or domestic insurance company to do business in this state, a nonrefundable fee of five hundred dollars, which fee shall accompany each application for authorization or licensure;
   2. In each year subsequent to 1992, in addition to any fee collected under paragraph (a) of this subsection (1), every insurance company, interinsurance company, fraternal benefit society, health maintenance organization, and nonprofit hospital, medical-surgical, and health service corporation licensed or authorized in this state that is regulated by the division of insurance shall make an annual nonrefundable payment on or before March 1 of each year based on the schedule specified in this paragraph (b) at the time of authorization and each subsequent renewal year. For nonadmitted insurers and accredited reinsurers, the fee specified in this paragraph (b) shall be considered to include the fee pursuant to paragraph (a) of this subsection (1):
      1. For insurance companies, interinsurance companies, fraternal benefit societies, health maintenance organizations, and nonprofit hospital, medical-surgical, and health service corporations that have prior year's direct written premiums, gross contract funds, or charges received in Colorado not exceeding one million dollars, a fee of six hundred seventy dollars;
      2. For insurance companies, interinsurance companies, fraternal benefit societies, health maintenance organizations, and nonprofit hospital, medical-surgical, and health service corporations that have prior year's direct written premiums, gross contract funds, or charges received in Colorado in excess of one million dollars but not exceeding ten million dollars, a fee of two thousand ten dollars. Any insurance company that did not write at least eighty thousand dollars of taxable premiums in the previous year in Colorado shall not exceed the fee as otherwise would have been payable pursuant to subparagraph (I) of this paragraph (b).
      3. For insurance companies, interinsurance companies, fraternal benefit societies, health maintenance organizations, and nonprofit hospital, medical-surgical, and health service corporations that have prior year's direct written premiums, gross contract funds, or charges received in Colorado in excess of ten million dollars, a fee of three thousand three hundred forty-five dollars. Any insurance company that did not write at least one hundred twenty thousand dollars of taxable premium in Colorado shall not exceed the fee as otherwise would have been payable pursuant to subparagraph (II) of this paragraph (b).
   3. (Deleted by amendment, L. 92, p. 1545 , § 36, effective July 1, 1992.)
   5. Repealed.
   6. 1. For the purpose of providing adequate funds to the division for market analysis, investigation, and enforcement of article 11 of this title and rules adopted pursuant to said article 11, in addition to any other fee collected pursuant to this subsection (1), each title insurer regulated by the division pursuant to article 11 of this title shall pay a nonrefundable annual fee on or before March 1 of each year. This fee shall be established by the commissioner in an amount sufficient to support two full-time equivalents within the division.
      2. Repealed.
      3. Notwithstanding any provision of section 10-1-103 or 10-1-108 (9) to the contrary, all fees and surcharges collected pursuant to this paragraph (f) shall be transmitted to the state treasurer, who shall deposit the same in the division of insurance cash fund created in section 10-1-103 , and shall be subject to annual appropriation to the division and to the department of law for the purposes set forth in this paragraph (f).
      4. Notwithstanding section 24-1-136 (11)(a)(I), commencing January 1, 2009, the division shall provide annual reports to the joint budget committee, the senate business, labor, and technology committee, and the house business affairs and labor committee, or any successor committees, and shall post on the division's website a statistical report of the number of enforcement actions taken, market trends associated with title insurance and real estate transactions, and consumer complaints supported by the fee in subparagraph (I) of this paragraph (f).
   (1.5) Every entity regulated by the division of insurance not identified in paragraph (b) of subsection (1) of this section shall pay a fee of five hundred dollars at the time of its license or authorization renewal.
2. Fees collected by the division of insurance pursuant to this section shall be transmitted to the state treasurer and credited to the division of insurance cash fund, created in section 10-1-103 (3).
3. (Deleted by amendment, L. 92, p. 1545 , § 36, effective July 1, 1992.)
4. Fair and reasonable fees for various administrative services of the division of insurance, including but not limited to copying, record searches, computer listings, computer disks or tapes, and requests for any such services from individuals, shall be determined by the commissioner.
5. Notwithstanding the amount specified for any fee in this section, the commissioner by rule or as otherwise provided by law may reduce the amount of one or more of the fees if necessary pursuant to section 24-75-402 (3), C.R.S., to reduce the uncommitted reserves of the fund to which all or any portion of one or more of the fees is credited. After the uncommitted reserves of the fund are sufficiently reduced, the commissioner by rule or as otherwise provided by law may increase the amount of one or more of the fees as provided in section 24-75-402 (4), C.R.S.

Source: L. 13: p. 331, § 14. C.L. § 2484. CSA: C. 87, § 12. L. 53: p. 369, § 1. CRS 53: § 72-1-12. L. 59: p. 507, § 2. C.R.S. 1963: § 72-1-12. L. 65: pp. 752, 753, §§ 1, 2. L. 71: p. 693, § 1. L. 77: (1)(q) added, p. 503, § 1, effective March 7. L. 78: (1)(h), (1)(i), (2)(d), and (2)(e) amended, p. 290, § 4, effective July 1. L. 86: (1)(d), (1)(e), (2)(d), and (2)(e) amended, p. 554, § 4, effective July 1. L. 89: (1)(d), (1)(e), (1)(j), (2)(d), and (2)(e) amended, p. 436, § 6, effective July 1. L. 91: Entire section amended, p. 1229, § 4, effective June 5. L. 92: Entire section amended, p. 1545, § 36, effective July 1. L. 95: IP(1)(b) amended, p. 490, § 3, effective May 16. L. 96: (1)(d) added, p. 684, § 1, effective August 1. L. 97: (1)(b) amended, p. 1413, § 5, effective June 3; (1)(e) added, p. 1043, § 5, effective August 6. L. 98: (5) added, p. 1325, § 26, effective June 1. L. 2006: (1)(e) amended, p. 1209, § 1, effective May 26; (1)(d) repealed, p. 1490, § 10, effective June 1. L. 2007: (1)(f) added, p. 1749, § 1, effective June 1. L. 2008: IP(1) amended, p. 1880, § 12, effective August 5. L. 2010: (1)(e) repealed, (HB 10-1385), ch. 204, p. 884, § 9, effective May 5. L. 2017: (1)(f)(IV) amended, (SB 17-044), ch. 4, p. 6, § 2, effective August 9.

10-3-207.5. Funding for insurance fraud investigations and prosecutions - creation of fund. (Repealed)

Source: L. 2010: Entire section added with relocations, (HB 10-1385), ch. 204, p. 882, § 1, effective May 5. L. 2012: Entire section repealed, (SB 12-110), ch. 158, p. 560, § 2, effective July 1.

Editor's note: This section was similar to former § 10-3-207 (1)(e) as it existed prior to 2010.

10-3-208. Financial statements.

1. All insurance companies doing business in this state, unless otherwise provided in this title (except article 15) and article 14 of title 24, C.R.S., shall make and file with the commissioner annually, on or before the first day of March in each year, a statement under oath, upon a form to be prescribed by the commissioner, stating the amount of all premiums collected or contracted for in this state or from residents thereof, in cash or notes, by the company making such statement during the year ending the last day of December next preceding; the amounts actually paid policyholders on losses and the amounts paid policyholders as returned premiums by property and casualty insurance companies; the amount of insurance reinsured in other companies authorized to do business in this state and the amount of premiums paid therefor; the amount of insurance reinsured in companies, naming them, not authorized to do business in this state and the amount of premiums paid therefor; and the amount of reinsurance accepted from admitted companies and the premiums received from such reinsurance on residents of this state or risks located in this state, with the name of the companies so reinsured. The annual statement made to the commissioner pursuant to this section or other provisions of said references shall at least include the substance of that which is required by what is known as the convention blank form adopted from year to year by the national association of insurance commissioners, including any instructions, procedures, and guidelines not in conflict with any provision of this title for completing the convention blank form.
2. The commissioner may require any insurance company authorized to do business in this state to submit interim financial statements and reports on a monthly or quarterly basis in such form as he prescribes, as deemed necessary in the public interest.
3. Each domestic, foreign, and alien insurer that is authorized to transact the business of insurance in this state shall on or before March 1 of each year file with the national association of insurance commissioners a copy of its annual statement convention blank, along with such additional filings as prescribed by the commissioner for the preceding year. The information filed with the national association of insurance commissioners shall include the signed jurat page and the actuarial certification, if applicable. Any amendments and addendums to the annual statement filing subsequently made with the commissioner shall also be filed with the national association of insurance commissioners.
4. Foreign insurers that are domiciled in a state which has a law substantially similar to subsection (3) of this section shall be deemed in compliance with the provisions of said subsection (3).
5. In the absence of actual malice, members of the national association of insurance commissioners, their duly authorized committees, subcommittees, and task forces, their delegates, employees of the national association of insurance commissioners, and all others charged with the responsibility of collecting, reviewing, analyzing, and disseminating the information developed from the filing of the annual statement convention blanks shall be acting as agents of the commissioner under the authority of this section and shall not be subject to civil liability for libel, slander, or any other cause of action by virtue of their collection, review, and analysis or dissemination of the data and information collected from the required filings.
6. Examination synopses concerning insurance companies that are submitted to the division by the national association of insurance commissioners' insurance regulatory information system are confidential and shall not be disclosed by the division.
7. 1. In preparing the statements required by subsection (1) of this section, all insurance companies shall follow the instructions, procedures, and guidelines of the national association of insurance commissioners. If the initial application of any such instruction, procedure, or guideline would cause a reduction in the total capital and surplus of a domestic insurer of ten percent or more or would cause the capital and surplus of a domestic insurer to fall to or below the company action level as defined by the commissioner by rule, such insurer may, within thirty days after the effective date of such instruction, procedure, or guideline, file with the commissioner a request to phase in the effect of the instruction, procedure, or guideline over a period not to exceed three years or a time period approved by the commissioner.
   2. Any request made pursuant to paragraph (a) of this subsection (7) shall include a complete analysis, in a form prescribed by the commissioner, of the impact upon the insurer making the request that is expected to result from application of the subject instruction, procedure, or guideline and, if a phase-in is requested, a description of the insurer's plan for the phase-in period. The commissioner shall not deny a request for a phase-in except upon notice and the opportunity for a hearing as provided in section 24-4-105, C.R.S.
   3. Any request for a hearing made pursuant to paragraph (b) of this subsection (7) shall include a description of the basis on which relief is sought. Upon receiving such a request, the commissioner shall, with regard to the insurer making the request, postpone the effective date of the subject instruction, procedure, or guideline pending the conclusion of the hearing and the taking of final agency action thereon. The hearing shall commence within sixty days after the commissioner receives the request and shall be conducted in accordance with section 24-4-105, C.R.S.
8. Repealed.

Source: L. 13: p. 331, § 15. C.L. § 2485. L. 23: p. 388, § 2. CSA: C. 87, § 13. L. 53: p. 363, § 1. CRS 53: § 72-1-13. C.R.S. 1963: § 72-1-13. L. 69: p. 503, § 1. L. 91: (1) and (2) amended, p. 1232, § 5, effective June 5; (3) to (6) added, p. 1246, § 7, effective July 1. L. 92: (1) amended, p. 1547, § 37, effective May 20. L. 97: (7) added, p. 91, § 1, effective March 24. L. 2004: (1) amended, p. 900, § 14, effective May 21. L. 2006: (8) added, p. 1429, § 1, effective August 7. L. 2011: (8) repealed, (HB 11-1033), ch. 93, p. 275, § 1, effective April 8. L. 2012: (1) amended, (HB 12-1266), ch. 280, p. 1504, § 27, effective July 1.

Cross references: For reports generally, see § 10-3-109.

10-3-209. Tax on premiums collected - exemptions - penalties.

1. 1. All insurance companies writing business in this state, including, without limitation, those defined in section 10-1-102 (6), except a disqualified insurance company, shall pay to the division of insurance a tax on the gross amount of all premiums collected or contracted for on policies or contracts of insurance covering property or risks in this state during the previous calendar year, after deducting from such gross amount the amount received as reinsurance premiums on business in this state, and the amount refunded under credit life and credit accident and health insurance policies on account of termination of insurance prior to the maturity date of the indebtedness, and, in the case of companies other than life, the amounts paid to policyholders as return premiums, which shall include dividends or unabsorbed premiums or premium deposits returned or credited to policyholders.
   2. 1. The rate of tax shall be as follows:
         1. For companies not exempted or charged a different rate of tax by another provision of this section, the rate of tax on the gross amount shall be:
         2. For companies maintaining a home office or a regional home office in this state, the rate of tax on the gross amount shall be one percent.
      2. For purposes of this subsection (1)(b), except as otherwise provided in subsection (1)(b)(II.5), any company is deemed to maintain a home office or regional home office in this state if such company either:
         1. Substantially performs in this state the following functions, or substantially equivalent functions, for the company for each state in which the company is licensed, or for three or more of such states: Actuarial, medical, legal, approval or rejection of applications, issuance of policies, information and service, advertising and publications, public relations, hiring, testing, and training of sales and service forces; or
         2. Maintains significant direct insurance operations in this state that are supported by functional operations which are both necessary for and pertinent to a line or lines of business written by the company in this state.

            (II.5) To be deemed to maintain a home office or regional home office in this state, a company must meet one of the criteria set forth in subsection (1)(b)(II) of this section and also have a workforce in the state that is greater than or equal to:

            (A) Two percent of the company's total domestic workforce, for taxes that are due and payable for calendar year 2022;

            (B) Two and one-quarter percent of the company's total domestic workforce, for taxes that are due and payable for calendar year 2023; and

         3. Two and one-half percent of the company's total domestic workforce, for taxes that are due and payable for calendar year 2024 and each calendar year thereafter.

            (II.7) For purposes of the calculation required in subsection (1)(b)(II.5) of this section, a workforce includes all employees of the company; the company's ultimate parent entity; subsidiaries; and affiliates, as defined in section 10-3-801 (1), but excludes agents, brokers, and their staff.

      3. Any company desiring to qualify an office in this state as a home or regional home office shall make application for qualification to the commissioner on forms prescribed by the commissioner and shall submit proof that it is operating a home or a regional home office in this state. Applications for companies that were not approved in the immediate preceding year shall be received by the commissioner by December 31 of the year immediately preceding the year for which the application for qualification is being made. Applications for companies that were approved in the immediate preceding year shall be received by the commissioner by March 1 of the year for which qualification is being made. Applications for companies that were approved in the immediate preceding year received through March 31 shall pay a late charge of one hundred dollars per day for each day after March 1 that any such application is received by the commissioner. Applications received after March 31 shall be denied. The provisions of subsection (2) of this section shall not apply to companies maintaining a home office or regional home office in this state.
   3. The taxes prescribed in paragraph (b) of this subsection (1) shall constitute all taxes collectible under the laws of this state against any such insurance companies, and no other occupation tax or other taxes shall be levied or collected from any insurance company by any county, city, or town within this state; but this title (except article 15) and article 14 of title 24, C.R.S., shall not be construed to prohibit the levy and collection of state, county, school, and municipal taxes upon the real and personal property of such companies, nor shall it include or prohibit the levy and collection of a tax to be paid on net workers' compensation premiums, as provided under the "Colorado Medical Disaster Insurance Fund Act", part 3 of article 46 of title 8, C.R.S.
   4. 1. All fraternal and benevolent associations organized under the laws of this state and doing business in this state shall be exempt from the provisions of this section.
      2. Mutual protective associations writing crop hail insurance only and operating on an advance premium basis shall be exempt from the taxes provided by this section on that portion of the premium designated to the loss fund.
      3. There shall be no tax under this section in the case of any policy issued prior to 1959 by a domestic insurance company organized under the laws of this state, maintaining its principal place of business in this state, and having thirty percent or more of its assets invested in bonds or warrants of this state or of any county, city, town, or district of this state, and other property within this state in which such company is permitted by law to invest its funds, and the premium of which policy was fixed and is contractually binding upon the company.
      4. Except to the extent provided in subsection (2) of this section, the tax imposed by this section shall not apply to premiums collected or contracted for after December 31, 1968, on policies or contracts issued in connection with a pension, profit sharing, or annuity plan established by an employer for employees if contributions by such employer thereunder are deductible by such employer in determining such employer's net income as defined in section 39-22-304, and shall not apply to premiums collected or contracted for after December 31, 1968, on policies or contracts purchased for an employee by an employer if such employer is exempt under section 39-22-112 from the tax imposed by article 22 of title 39, or is a state, a political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state. The tax imposed by this section shall not apply to annuity considerations collected or contracted for after December 31, 1976, except to the extent provided in subsection (2) of this section and except for taxes that are due and payable for the calendar year 2021 and each calendar year thereafter, this exemption only applies to annuity considerations that are used as qualified funding assets under section 130 of the internal revenue code or annuity considerations that are purchased in connection with:
         1. A plan under section 401 (a) of the federal "Internal Revenue Code of 1986", as amended;
         2. A Roth 401(k) under section 402A of the federal "Internal Revenue Code of 1986", as amended;
         3. A tax-sheltered annuity plan under section 403 (b) of the federal "Internal Revenue Code of 1986", as amended;
         4. An individual retirement account under section 408 (a) of the federal "Internal Revenue Code of 1986", as amended;
         5. An individual retirement annuity under section 408 (b) of the federal "Internal Revenue Code of 1986", as amended;
         6. A simplified employee pension under section 408 (k) of the federal "Internal Revenue Code of 1986", as amended;
         7. A simple retirement account under section 408 (p) of the federal "Internal Revenue Code of 1986", as amended;
         8. A deferred compensation plan under section 457 of the federal "Internal Revenue Code of 1986", as amended;
         9. A Roth 457 under section 457 of the federal "Internal Revenue Code of 1986", as amended; and
         10. A qualified retirement plan not specified in this subsection (1)(d)(IV) or a Roth version of any qualified retirement plan.
      5. Repealed.
   5. The taxes provided for in this section shall be due and payable on the first day of March in each year. Any company failing or refusing to render such statement and information, or to pay taxes as specified in this section, for more than thirty days after the time specified, shall be liable to a penalty of up to one hundred dollars for each additional day of delinquency, to be assessed by the commissioner. If the tax paid is less than the full amount prescribed by this section, interest at the rate of one percent per month or fraction thereof on the unpaid amount shall be charged from the date on which payment was due to the date on which full payment is made, and a penalty of up to twenty-five percent of the unpaid amount may be assessed by the commissioner. The commissioner may suspend the certificate of authority of a delinquent company until such taxes and penalty, should any penalty be imposed, are fully paid.
   6. In computing assets for the purpose of this section, the investments of any such company in the bonds, notes, or other obligations of the United States of America, or any instrumentality of the United States, the obligations of which are guaranteed by the United States, and deferred or uncollected insurance premiums and annuity considerations shall first be deducted. Any company claiming entitlement to any reduced rate provided in this section shall present such evidence in justification of its claim as may be required by the commissioner.
   7. For the purpose of obtaining the exemption provided in paragraph (d)(III) of this subsection (1), the term "other property within this state" means: Real estate and tangible personal property within this state; first mortgages upon real estate within this state; stocks or bonds of corporations organized under the laws of this state; deposits with banks, trust companies, savings and loan associations, building and loan associations, or financial institutions domiciled within this state; stocks or bonds of foreign or alien corporations which on the date of purchase of such stocks or bonds have fifty percent or more of their assets invested in this state; and accounts of agents who are residents of this state.
2. When, by the laws of any other state, any taxes and fees in the aggregate, fines, penalties, deposits of money or securities or other obligations, prohibitions, or requirements are imposed upon insurers organized under any law of this state and transacting business in such other state, or upon the agents of such insurer, greater in aggregate amount than those imposed upon similar insurers by the laws of this state, or when the laws of any other state require insurers of this state to deposit money or security for the benefit or protection of citizens of such other state, or when the laws or officers of any other state prohibit insurers of this state from transacting business therein without a special examination of the insurers or a computation of their liabilities by the officers of that state, the same taxes and fees in the aggregate, fines, penalties, deposits, examinations, obligations, and requirements may be imposed by the commissioner upon all insurers doing business in this state that are incorporated or organized under the laws of such other state and upon their agents. For the purpose of this section, an alien insurer may be deemed to be domiciled in a state designated by it wherein it has established its principal office or agency in the United States or maintains the largest amount of its assets. If no such office or agency is established, its domicile is the country under laws of which it is formed.
3. 1. Anything in subsection (1) of this section to the contrary notwithstanding, any insurance company doing business in this state which was liable for payment of more than five thousand dollars in taxes, as provided in this section, during the preceding calendar year shall, on and after January 1, 1971, pay quarterly estimates of such taxes as provided in paragraphs (b) to (d) of this subsection (3).
   2. Such estimated taxes shall become due and payable on the last day of the month following the close of any calendar quarter of the year, except for the fourth quarter which shall be due March 1 and shall include adjustments for the preceding calendar year. Any company failing or refusing to pay such estimated taxes for more than thirty days after the time specified shall be liable to a penalty of up to one hundred dollars for each additional day of delinquency, to be assessed by the commissioner. Failure of a company to make quarterly payments, if required, each payment to be of at least one-fourth of either the total tax paid during the preceding calendar year or eighty percent of the actual quarterly tax for the current calendar year, whichever is lesser, shall be considered and treated the same as a failure or refusal to pay the estimated taxes and shall subject the company to the penalties provided in this subsection (3)(b). The amount of estimated taxes and the penalties collected shall be paid to the division of insurance; and the commissioner may suspend the certificate of authority of such delinquent company until such estimated taxes and penalty, should any penalty be imposed, are fully paid.
   3. Estimated taxes paid pursuant to this subsection (3) shall be based on the estimated amount of taxable premiums during the preceding calendar quarter. Calendar quarter estimates of taxes may include adjustments for any previous calendar quarter estimates of taxes and allowable tax credits claimed by the company in accordance with part 1 of article 3.5 of title 10, part 2 of article 36 of title 24, part 2 of article 46 of title 24, part 21 of article 22 of title 39, or any other law authorizing a credit against premium tax liability. Estimated taxes shall be paid on the basis of such adjusted estimates.
   4. 1. Adjustments in payments of estimated taxes for any calendar year shall be made at the time of the filing of the annual statement required under section 10-3-208 and the payment of taxes required by this section. If, upon the filing of the annual statement, a company has overpaid its taxes for any calendar year, the company may either apply the overpayment to its calendar quarter estimates of taxes in a subsequent calendar year or claim a refund for the amount of the overpayment. If a company claims a refund, it shall file for such refund at the time of filing such annual statement, and, if the commissioner claims a deficiency, the commissioner shall notify the deficient company thereof.
      2. In calculating the amount of a refund claimed pursuant to subsection (3)(d)(I) of this section, the value of a nonrefundable tax credit claimed by the company must be applied first to the company's total tax liability, prior to applying any other payment made by the company regardless of the order in which such payments or credits were received. The refund must not exceed the total amount of any additional payments made by the company.
      3. 1. For the 2020-21 state fiscal year and each state fiscal year thereafter, in the health insurance affordability cash fund created in section 10-16-1206, an amount equal to the amount of premium taxes collected pursuant to this section in the 2020 calendar year or any subsequent calendar year that exceeds the amount of premium taxes collected pursuant to this section in the 2019 calendar year, subject to subsection (4)(a)(III)(B) of this section.
         2. The amount of premium taxes deposited in the health insurance affordability cash fund pursuant to this subsection (4)(a)(III) in any given year shall not exceed ten percent of the amount of revenues collected by the Colorado health insurance affordability enterprise pursuant to section 10-16-1205 in that year. The health insurance affordability board established in section 10-16-1207 shall notify the treasurer of the maximum amount of premium taxes that may be deposited in the health insurance affordability cash fund to comply with this subsection (4)(a)(III)(B).
4. 1. The division of insurance shall transmit all taxes, penalties, and fines it collects under this section to the state treasurer for deposit in the general fund; except that the state treasurer shall deposit amounts in the specified cash funds as follows:

      (I) In the division of insurance cash fund created in section 10-1-103 (3), an amount that is equal to the general assembly's appropriation from the fund to the division for its direct and indirect expenditures less the total fee revenue that is deposited in the fund; except that the amount deposited in the fund under this subparagraph (I) shall not exceed five percent of all taxes collected under this section;

      (II) In the wildfire emergency response fund created in section 24-33.5-1226 and the wildfire preparedness fund created in section 24-33.5-1227, the amount of the taxes, penalties, and fines that the general assembly appropriates to each of the cash funds; and

   2. Repealed.
5. For the purpose of auditing a company's tax statement, the commissioner or the commissioner's designee, which may include an independent examiner under section 10-1-204 (6), has the power to examine any books, papers, records, agreements, or memoranda bearing upon the matters required to be included in the tax statement. Such books, papers, records, agreements, or memoranda shall be made available upon request to the commissioner's office or the commissioner's designee.

Premium collected or contracted for during: Rate of tax: 1996 2.20% 1997 2.15% 1998 2.10% 1999 2.05% 2000 and thereafter 2.00%

Source: L. 13: p. 332, § 16. C.L. § 2486. L. 33: p. 636, § 1. CSA: C. 87, § 14. L. 41: p. 515, § 1. L. 53: p. 378, § 1. CRS 53: § 72-1-14. L. 55: p. 443, § 1. L. 59: p. 505, § 1. L. 60: p. 149, § 1. L. 61: p. 438, § 1. L. 63: p. 568, §§ 1, 2. C.R.S. 1963: § 72-1-14. L. 65: p. 755, § 1. L. 69: pp. 504-506, §§ 1-4, 1. L. 70: p. 243, § 1. L. 71: p. 694, § 1. L. 73: pp. 833, 834, §§ 1, 2. L. 75: (1)(c) amended, p. 310, § 55, effective September 1. L. 77: (1)(d)(IV) amended, p. 504, § 1, effective June 21. L. 81: (1)(d)(IV) and (3)(b) amended, p. 525, § 1, effective May 13. L. 86: (1)(d)(V) added, p. 549, § 2, effective July 1. L. 87: (1)(d)(IV) amended, p. 1451, § 27, effective June 22. L. 90: (1)(c) amended, p. 558, § 14, effective July 1. L. 92: (1)(b)(II), (1)(c), and (4) amended, p. 1548, § 38, effective May 20. L. 95: (1)(b)(I) amended, p. 490, § 4, effective May 16. L. 96: (1)(a) and (1)(b) amended, p. 551, § 1, effective April 24. L. 97: (5) added, p. 531, § 4, effective April 24. L. 2000: (1)(a) amended, p. 1616, § 2, effective August 2. L. 2003: (1)(a) amended, p. 616, § 9, effective July 1. L. 2004: (1)(c) amended, p. 900, § 15, effective May 21. L. 2012: (1)(c) amended, (HB 12-1266), ch. 280, p. 1505, § 28, effective July 1. L. 2013: (4) amended, (SB 13-270), ch. 250, p. 1316, § 5, effective May 23. L. 2014: (4)(a) amended, (HB 14-1195), ch. 117, p. 418, § 1, effective July 1. L. 2016: (1)(b) amended, (SB 16-165), ch. 278, p. 1145, § 1, effective January 1, 2017. L. 2019: (4)(a) amended, (HB 19-1168), ch. 204, p. 2187, § 2, effective May 17. L. 2020: (4)(a)(III) amended, (SB 20-215), ch. 201, p. 1001, § 10, effective June 30. L. 2020, 1st Ex. Sess.: (3)(b), (3)(c), and (3)(d) amended, (HB 20B-1006), ch. 5, p. 31, § 1, effective December 7. L. 2021: (1)(a) amended, (HB 21-1311), ch. 298, p. 1786, § 12, effective June 23; IP(1)(b)(II), (1)(d)(IV), and (5) amended and (1)(b)(II.5) and (1)(b)(II.7) added, (HB 21-1312), ch. 299, p. 1789, § 2, effective July 1.

10-3-210. Deposit and safekeeping of securities.

1. 1. The commissioner shall give receipts for all securities deposited with the commissioner, as required or permitted by law, to the company depositing them.
   2. If the company depositing securities in accordance with paragraph (a) of this subsection (1) is adjudged insolvent, such deposit shall be released only upon the entry of an order of a court acting in accordance with the provisions of part 5 of this article. If a company that has not been adjudged insolvent elects to dissolve, the commissioner may release securities under joint control upon a showing by the insurance company satisfactory to the commissioner that all debts, obligations, and liabilities of the insurance company have been paid and discharged, or adequate provisions for payment and discharge have been made, and upon return of the company's certificate of authority to the commissioner.
   3. (Deleted by amendment, L. 2004, p. 1061 , § 8, effective July 1, 2004.)
   4. If the company depositing securities in accordance with paragraph (a) of this subsection (1) remains solvent, the commissioner shall permit such company, or its assigns, to:
      1. Collect and receive the interest and dividends on deposited securities; and
      2. Withdraw any deposited securities if the company simultaneously deposits other securities to replace those withdrawn.
   5. The provisions of this subsection (1) shall not apply to securities subject to part 12 of this article.
2. 1. 1. Notwithstanding any other provision of law, the securities qualified for deposit under this section may be deposited as provided in part 12 of this article with a clearing corporation or held in the federal reserve book-entry system. (2) (a) (I) Notwithstanding any other provision of law, the securities qualified for deposit under this section may be deposited as provided in part 12 of this article with a clearing corporation or held in the federal reserve book-entry system.
      2. Securities deposited with a clearing corporation or held in the federal reserve book-entry system and used to meet the deposit requirements set forth in this section shall be under the control of the commissioner and shall not be withdrawn by the company without the approval of the commissioner.
   2. The commissioner may prescribe or approve reasonable arrangements and safeguards under which a solvent company may sell a particular deposited security if the company:
      1. Immediately reinvests the proceeds of the sale in other securities eligible for deposit under this article; and
      2. Deposits other securities to replace those securities that were sold.
   3. Any owner, nominee owner, depository, or custodian of securities held in accordance with paragraph (a) of this subsection (2) shall not sell, claim against, or otherwise dispose of said securities without written permission of the commissioner.
   4. Any company holding securities in accordance with paragraph (a) of this subsection (2) shall provide to the commissioner evidence issued by its custodian or member bank through which such company has deposited such securities in a clearing corporation or through which such securities are held in the federal reserve book-entry system, respectively, in order to establish that the securities are actually recorded in an account in the name of the custodian or other direct participant or member bank and that the records of the custodian, other participant, or member bank reflect that such securities are held subject to the order of the commissioner.
   5. If the company depositing securities in accordance with paragraph (a) of this subsection (2) remains solvent, the commissioner shall permit such company, or its assigns, to:
      1. Collect and receive the interest and dividends on those deposited securities; and
      2. Withdraw any deposited securities if the company simultaneously deposits other securities to replace those withdrawn.
   6. If the company depositing securities in accordance with paragraph (a) of this subsection (2) is adjudged insolvent, such deposit shall be released only upon the entry of an order of a court acting in accordance with the provisions of part 5 of this article. If a company that has not been adjudged insolvent elects to dissolve, the commissioner may release securities under joint control upon a showing satisfactory to the commissioner that all debts, obligations, and liabilities of the insurance company have been paid and discharged, or adequate provisions for payment and discharge have been made, and upon return of the company's certificate of authority to the commissioner.
   7. 1. The commissioner may designate any solvent national bank, state bank, or trust company located in the city and county of Denver as the commissioner's depository for receiving and holding as custodian any deposit of securities in accordance with paragraph (a) of this subsection (2).
      2. Any deposit received and held pursuant to this subsection (2) shall be received and held at the expense of the company.

Source: L. 25: p. 313, § 3. CSA: C. 87, § 44. CRS 53: § 72-2-4. C.R.S. 1963: § 72-2-3. L. 83: Entire section amended, p. 450, § 1, effective May 3. L. 92: (1) amended, p. 1549, § 39, effective May 20. L. 96: Entire section amended, p. 97, § 1, effective July 1. L. 2004: (1)(a), (1)(b), (1)(c), and (2)(f) amended, p. 1061, § 8, effective July 1.

Cross references: For requirement of deposit, see § 10-3-201; for certificate of deposit, see § 10-3-206.

10-3-211. Deposit only admitted assets.

1. Deposits made with the commissioner as permitted or required by law shall be only those admitted assets of the company that are securities eligible for the purpose of a deposit, as provided in section 10-3-235 (1) or (2). The company may deposit, withdraw, exchange, or substitute any security at any time if the total amount of securities remaining on deposit is no less than required by law.
2. When a domestic insurance company reinsures all of its business in another company, the securities deposited by the reinsured company with the commissioner, subject to any existing liens against and restrictions upon them, may be assigned or transferred to the reinsuring company, and the latter company shall thereupon acquire all the rights, title, and interest of the reinsured company in and to such securities and shall be entitled to all the rights, benefits, and privileges of the reinsured company pertaining thereto. If a domestic company, having securities on deposit with the commissioner, reinsures all of its business, such securities may only be withdrawn, except for the purpose of exchange or substitution, upon a showing satisfactory to the commissioner that all debts, obligations, and liabilities of the insurance company have been paid and discharged, or adequate provisions for payment and discharge have been made, and upon return of the company's certificate of authority to the commissioner.
3. (Deleted by amendment, L. 2004, p. 1062 , § 9, effective July 1, 2004.)

Source: L. 33: p. 611, § 1. CSA: C. 87, § 45. CRS 53: § 72-2-5. C.R.S. 1963: § 72-2-4. L. 69: p. 491, § 3. L. 2004: Entire section amended, p. 1062, § 9, effective July 1.

10-3-212. Insolvency or impairment of stock insurance company.

A stock insurance company is deemed insolvent when its admitted assets are less than all of its liabilities, excluding from such liabilities the aggregate amount of its outstanding capital stock, and is deemed impaired when its admitted assets are less than its liabilities, including as a liability the aggregate amount of its outstanding capital stock, or when its surplus is less than the minimum requirements of section 10-3-201.

Source: L. 25: p. 315, § 5. CSA: C. 87, § 46. CRS 53: § 72-2-6. C.R.S. 1963: § 72-2-5. L. 69: p. 544, § 2.

10-3-213. Investments eligible as admitted assets.

1. Domestic insurance companies may invest their funds in the categories of assets described in sections 10-3-215 to 10-3-230 and 10-3-242. Every such investment shall be an admitted asset of the company; except that, if the section describing a category of asset contains a quantitative limitation, an investment in that category of asset shall be an admitted asset under that section to the extent that it does not exceed such limitation. Any such limitation shall apply only with respect to the category of assets described in that section and shall not constitute a general prohibition and shall not be applicable to any other section. Except as provided in section 10-3-237, any investment, or part thereof, that does not qualify under any of said sections shall not be an admitted asset under the provisions of this part 2. Except as specifically provided in this title (except article 15) and article 14 of title 24, C.R.S., a domestic insurance company shall not be prohibited from acquiring or holding an asset that is not an admitted asset, and such company may lend, pledge, sell, transfer, assign, hypothecate, dispose of, or exchange any asset acquired by it.
2. Notwithstanding the provisions of subsection (1) of this section, an insurance company or other regulated entity to whom this section applies shall be required reasonably to diversify its investments made pursuant to sections 10-3-215 to 10-3-230 and 10-3-242 as to type and issue, and to maintain a sufficient degree of liquidity based on the nature of the business transacted. The commissioner may promulgate such reasonable rules and regulations as are necessary to carry out the provisions of this subsection (2), taking into consideration the standards of the national association of insurance commissioners. The commissioner may require an insurer or other regulated entity to show compliance by demonstrating that its investments are not overly concentrated in any one area, including without limitation the areas of duration, industry, issuer, or geographic location.

Source: L. 69: p. 491, § 5. C.R.S. 1963: § 72-2-19. L. 85: Entire section amended, p. 380, § 2, effective May 1. L. 92: Entire section amended, p. 1767, § 3, effective March 20; entire section amended, p. 1549, § 40, effective May 20. L. 2004: (1) amended, p. 901, § 16, effective May 21. L. 2012: (1) amended, (HB 12-1266), ch. 280, p. 1505, § 29, effective July 1.

Editor's note: Amendments to this section by Senate Bill 92-090 and House Bill 92-1090 were harmonized.

10-3-214. Quantitative investment limitations - manner of applying.

In applying the investment limitations set forth in this part 2, which are expressed as percentages of a company's admitted assets, there shall be used as a base the total of all assets of the company that would be admitted under this title (except article 15) and article 14 of title 24, C.R.S., without regard to such limitations and without regard to any condition or restriction set forth in section 10-3-237 (2), and asset values will be those values determined at the current annual statement date or, in case of any statement or examination as of a date other than an annual statement date, those values determined at such other date. In applying any investment limitation set forth in this part 2, which is expressed as a percentage of a company's surplus, the amount of the company's surplus shall be that determined at the current annual statement date or, in the case of any statement or examination as of a date other than an annual statement date, the amount determined at such other date.

Source: L. 69: p. 492, § 5. C.R.S. 1963: § 72-2-20. L. 92: Entire section amended, p. 1550, § 41, effective May 20. L. 2004: Entire section amended, p. 901, § 17, effective May 21. L. 2012: Entire section amended, (HB 12-1266), ch. 280, p. 1505, § 30, effective July 1.

10-3-215. Evidences of indebtedness.

1. A domestic insurance company may invest in lawfully issued interest-bearing evidences of indebtedness, including interest-bearing bonds, bonds that provide for imputed interest payable at maturity, revenue bonds, debentures, and other instruments evidencing indebtedness for the payment of money:
   1. Issued by the United States, by an agency or instrumentality of the United States, or by any state, territory, district, or political subdivision of the United States;
   2. Guaranteed or insured as to the payment of principal and interest by the United States or any agency or instrumentality thereof, or by any state, territory, district, or political subdivision of the United States;
   3. Of counties, districts, townships, municipalities, and political subdivisions within the states, territories, and districts of the United States; except that investment in special improvement district obligations shall be limited to those which have received a designation or rating equivalent to or better than those specified in subsection (2)(b) of this section or, if not so designated or rated, have a credit enhancement approved by the commissioner;
   4. Issued by Canada, by provinces or districts of Canada, or by counties, districts, townships, municipalities, or political subdivisions of Canada, or guaranteed or insured as to the payment of principal and interest by Canada or by a province or district of Canada;
   5. Issued by institutions created under the laws of the United States, of any state, territory, or district of the United States, or of Canada or a province of Canada, which institutions are not referenced in subsection (1)(a), (1)(b), (1)(c), or (1)(d) of this section; but the aggregate value of all bonds and other evidences of indebtedness of any one institution that may be admitted assets under this section must not exceed three percent of the company's admitted assets except as:
      1. To those bonds and other evidences of indebtedness of insurance companies admitted to do business in a state of the United States or in the District of Columbia, for coinsurance or reinsurance purposes, in which case the bonds or other evidences of indebtedness must not exceed the greater of three percent of the domestic insurance company's admitted assets or five percent of the debtor insurance company's admitted assets or loans; or
      2. May be otherwise authorized under section 10-3-802;
   6. Of farm credit banks and banks for cooperatives, or other similar corporations organized under the laws of the United States;
   7. Repealed.
   8. Issued by, or guaranteed or insured as to the payment of principal and interest by, any foreign government other than those listed in paragraph (d) of this subsection (1); except that the aggregate value of all such bonds and other evidences of indebtedness which may be admitted assets pursuant to this paragraph (h) and paragraph (i) of this subsection (1) shall not exceed twenty percent of the domestic insurance company's admitted assets, and except that the aggregate amount of foreign investments that may be admitted assets pursuant to this paragraph (h) and to paragraph (i) of this subsection (1) in a single foreign jurisdiction shall not exceed:
      1. Ten percent of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating from a nationally recognized statistical rating organization recognized by the securities valuation office of the national association of insurance commissioners equivalent to securities valuation office rating 1 in the then current purposes and procedures manual of the securities valuation office; or
      2. Three percent of its admitted assets as to any other foreign jurisdiction.
   9. Of solvent foreign institutions other than those specified in paragraphs (e) and (j) of this subsection (1) which are not in default in the payment of interest on any of their bonds at the time the investment is made; except that the aggregate value of all such bonds and other evidences of indebtedness which may be admitted assets pursuant to this paragraph (i) and paragraph (h) of this subsection (1) shall not exceed twenty percent of the domestic insurance company's admitted assets, and except that the aggregate amount of foreign investments that may be admitted assets pursuant to this paragraph (i) and to paragraph (h) of this subsection (1) in a single foreign jurisdiction shall not exceed:
      1. Ten percent of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating from a nationally recognized statistical rating organization recognized by the securities valuation office of the national association of insurance commissioners equivalent to securities valuation office rating 1 in the then current purposes and procedures manual of the securities valuation office; or
      2. Three percent of its admitted assets as to any other foreign jurisdiction.
   10. Issued by, or guaranteed or insured as to the payment of principal and interest by, the international bank for reconstruction and development, the inter-American development bank, the African development bank, or the Asian development bank; but the aggregate value of all bonds and other evidences of indebtedness which may be admitted assets pursuant to this paragraph (j) shall not exceed five percent of the domestic insurance company's admitted assets.
2. A domestic insurance company may invest in mortgage-backed securities, including collateralized mortgage obligations and other obligations for the payment of money secured by participation certificates or loans secured, directly or indirectly, by real estate mortgages or deeds of trust if:
   1. The obligation or each participation certificate or loan is fully guaranteed or insured as to principal and interest by the United States or by any state, territory, or district thereof, or by any agency, instrumentality, or political subdivision of one or more of the foregoing; but the aggregate value of any one issue of such obligations which may be admitted assets pursuant to this paragraph (a) shall not exceed five percent of the domestic insurance company's admitted assets; or
   2. The obligations have received a "1" or "2" quality designation by the securities valuation office of the national association of insurance commissioners as set forth in its most recently published valuations of securities manual or are rated investment grade in Standard & Poor's (at least BBB-) or Moody's (at least Baa3) bond guides, or have received comparable designations or ratings in the event the method of presenting such designations or ratings later changes or such designations or ratings are provided by successor entities, or have received comparable investment grade designations or ratings by any similar organization approved by the commissioner; but the aggregate value of any one issue of such obligations which may be admitted assets pursuant to this paragraph (b) shall not exceed three percent of the domestic insurance company's admitted assets.

Source: L. 69: p. 492, § 5. C.R.S. 1963: § 72-2-21. L. 75: (1)(e) amended, p. 335, § 1, effective July 1. L. 81: (1)(e) amended and (1)(g) repealed, pp. 527, 531, §§ 2, 11, effective July 1. L. 86: IP(1) amended, p. 560, § 1, effective April 3. L. 91: (1) amended and (2) added, p. 1174, § 1, effective May 18. L. 92: (1)(e) and (1)(i) amended, p. 1767, § 4, effective March 20. L. 2000: (1)(h) and (1)(i) amended, p. 1729, § 2, effective August 15. L. 2020: IP(1), (1)(a), (1)(d), (1)(e), and IP(2) amended, (HB 20-1136), ch. 87, p. 347, § 1, effective September 14.

10-3-215.5. Investments in medium- and lower-grade obligations.

1. As used in this section, unless the context otherwise requires:
   1. "Aggregate amount of medium-grade and lower-grade obligations" means the aggregate statutory statement value of medium-grade and lower-grade obligations.
   2. "Domestic obligation" means an obligation described in section 10-3-215 (1)(a) to (1)(f).
   3. "Foreign obligation" means an obligation described in section 10-3-215 (1)(h) and (1)(i).
   4. "Lower-grade obligation" means an obligation rated four, five, or six by the securities valuation office of the national association of insurance commissioners or by any successor entity.
   5. "Medium-grade obligation" means an obligation rated three by the securities valuation office of the national association of insurance commissioners or by any successor entity.
   6. "Obligation" means a bond or other type of evidence of indebtedness referred to in section 10-3-215.
2. Without the written approval of the commissioner, no domestic insurance company shall acquire, directly or indirectly, any medium-grade or lower-grade obligation of any institution if, at the time of acquisition, after giving effect to any such acquisition:
   1. The aggregate amount of all medium-grade and lower-grade domestic and foreign obligations then held by the domestic insurance company would exceed twenty percent of its admitted assets with the aggregate amount of such foreign obligations being no more than ten percent of its admitted assets; or
   2. The aggregate amount of all lower-grade domestic and foreign obligations then held by the domestic insurance company would exceed ten percent of its admitted assets with the aggregate amount of such foreign obligations being no more than five percent of its admitted assets; or
   3. The aggregate amount of all domestic and foreign obligations held by the domestic insurance company which were rated five or six by the securities valuation office of the national association of insurance commissioners or by any successor entity would exceed three percent of its admitted assets with the aggregate amount of such foreign obligations being no more than one and one-half percent of its admitted assets; or
   4. The aggregate amount of all domestic and foreign obligations held by the domestic insurance company which were rated six by the securities valuation office of the national association of insurance commissioners or by any successor entity would exceed one percent of its admitted assets with the aggregate amount of such foreign obligations being no more than one-half percent of its admitted assets.
3. Attaining or exceeding the limit of any one of the categories listed in paragraphs (a) to (d) of subsection (2) of this section shall not preclude an insurer from acquiring obligations in other categories subject to the specific and multi-category limits.
4. Without the written approval of the commissioner, no domestic insurance company shall acquire, directly or indirectly, any medium-grade or lower-grade obligation of any institution if, at the time of acquisition, after giving effect to any such acquisition:
   1. The aggregate amount of all medium-grade and lower-grade obligations issued, guaranteed, or insured by such institution and held by the domestic insurance company exceeds one percent of the domestic insurance company's admitted assets; or
   2. The aggregate amount of all lower-grade obligations issued, guaranteed, or insured by such institution and held by the domestic insurance company exceeds one-half of one percent of the domestic insurance company's admitted assets.
5. Nothing contained in this section shall prohibit a domestic insurance company from acquiring any obligation which it has committed to acquire if such insurance company would have been permitted to acquire that obligation pursuant to this section on the date on which such insurance company committed to purchase that obligation; and nothing in this section shall require a domestic insurance company to sell or otherwise dispose of any investment.
6. Notwithstanding any other provision of this section, a domestic insurance company may acquire, whether or not through a restructuring, an obligation of an institution in which such insurance company already has one or more obligations, if such obligation is acquired in order to protect an investment previously made in the obligations of such institution so long as all such acquired obligations of an institution do not exceed one-half of one percent of the insurer's admitted assets.
7. Nothing contained in this section shall prohibit a domestic insurance company from acquiring an obligation as a result of a restructuring of a medium- or lower-grade obligation already held.
8. The board of directors of any domestic insurance company which acquires or invests, directly or indirectly, more than two percent of its admitted assets in medium-grade and lower-grade obligations shall adopt a written plan for the acquisition of such investments. The plan, in addition to guidelines with respect to the quality of the issues invested in, shall contain appropriate diversification standards applied to all of its investments, which may include, for example, standards for issuer, industry, duration, liquidity, and geographic location.
9. All obligations acquired by a domestic insurance company shall be rated in accordance with the standards of the securities valuation office or any successor entity.
10. The provisions of this section shall take effect July 1, 1992, and shall apply to all investments in obligations acquired on or after that date.

Source: L. 92: Entire section added, p. 1768, § 5, effective July 1. L. 2000: (1)(a.3) and (1)(a.7) added and (2) amended, p. 1731, §§ 3, 4, effective August 15.

10-3-216. Mortgage loans.

1. A domestic insurance company may acquire, either directly or indirectly, obligations secured by mortgages on real estate located in the United States or Canada, but the company shall not acquire a mortgage loan that is not secured by a first lien unless the company is the holder of the first lien. Authority to acquire a mortgage loan is subject to the following:
   1. 1. At the time of acquisition, no such loan shall exceed:
         1. Ninety percent of the value of the real property if the mortgage loan is secured by a purchase-money mortgage or like security received by the insurer upon disposition of the real property;
         2. Eighty percent of the value of the real property if the mortgage loan is secured by commercial real property or by real property that is improved with a residential building designed for occupancy by five or more dwelling units and if the mortgage loan: Requires immediate scheduled payment in periodic installments of principal and interest; has an amortization period of thirty years or less; and requires periodic payments to be made no less frequently than annually. In addition, each periodic payment must be sufficient to assure that, at all times, the outstanding principal balance of the mortgage loan does not exceed the outstanding principal balance that would be outstanding under a mortgage loan with the same original principal balance, with the same interest rate, and requiring equal payments of principal and interest with the same frequency over the same amortization period. Mortgage loans permitted under this sub-subparagraph (B) are permitted notwithstanding the fact that they provide for a payment of the principal balance prior to the end of the period of amortization of the loan. If the loan meets all other requirements of this sub-subparagraph (B), acceptable private mortgage insurance has been obtained, and the mortgage loan is secured by real property that is improved with a residential building, including a condominium, designed for occupancy by not more than four dwelling units, the loan may be up to ninety-seven percent of the value of the real property.
         3. Seventy-five percent of the value of the real property if the mortgage loan is secured by a mortgage that does not meet the requirements set forth in sub-subparagraph (A) or (B) of this subparagraph (I).
      2. In all cases, value must be evidenced by the written appraisal of a qualified real estate appraiser, who may be an employee of the company; except that, in the case of property used for the production of oil, of gas, or of other minerals, the appraisal must be made by an engineer or geologist qualified in the relevant field. For commercial properties of over one hundred thousand dollars in value, the appraiser must be a member of an institute of real estate appraisers, or its equivalent.
   2. Repealed.
   3. Repealed.
   4. Any improvements must be insured against casualty loss, for the benefit of the lending company, by a reliable property and casualty insurance company for an amount not less than the unpaid balance of the obligation or the insurable value of the property, whichever is less.
   5. The company must hold the documents necessary to evidence the company's ownership of the company's liens. If, under the law of the jurisdiction where the real property is situated, it is necessary to the validity of the lien to record a mortgage or assignment of the lien, the company must record the mortgage or assignment in compliance with such law.
   6. The entire mortgage loan obligation must be owned by the company; except that the company may own this type of obligation in common with other participants if, at the time of the company's investment, each participant is:
      1. A bank whose depositors are insured by the federal deposit insurance corporation;
      2. A savings and loan association whose members are insured by the federal deposit insurance corporation or any successor agency thereto;
      3. A trust for a pension or other benefit plan for employees qualified under section 401 of the federal "Internal Revenue Code of 1986", as amended;
      4. An insurance company organized in any state of the United States, the District of Columbia, or any province of Canada; or
      5. A corporation or association owned wholly by one or more of the entities or one or more wholly owned subsidiaries of the entities specified in subparagraph (I), (II), or (IV) of this paragraph (f).
   7. Repealed.
   8. If before a loan is paid the value of the real property, including any improvements thereon, securing the loan depreciates, the loan may nevertheless be carried as an admitted asset, but not for an amount exceeding seventy-five percent of the current value of the real property.
   9. The maximum amount of a loan made, directly or indirectly, to any one obligor that may be an admitted asset of the company under this section must not exceed two percent of the company's admitted assets.
   10. The aggregate amount of investments of a company that may be admitted assets under this section must not exceed fifty percent of the company's admitted assets.
2. 1. A domestic insurance company may acquire a mortgage loan secured by a mortgage on real estate located in a foreign jurisdiction having a sovereign debt rating of "1" from the securities valuation office of the National Association of Insurance Commissioners if the mortgage loan otherwise meets the requirements of subsection (1) of this section; except that the aggregate amount of foreign mortgage loans that may be admitted assets under this subsection (2)(a) must not exceed ten percent of the company's admitted assets.
   2. This subsection (2) does not apply to a jurisdiction described in subsection (1) of this section.

Source: L. 69: p. 492, § 5. C.R.S. 1963: § 72-2-22. L. 71: p. 708, § 1. L. 73: pp. 839, 840, §§ 1, 2. L. 75: (1)(j) amended, p. 339, § 1, effective June 26; (1)(f) R&RE, p. 335, § 2, effective July 1. L. 81: (1)(a) amended, p. 532, § 1, effective April 1; (1)(f) and (1)(j) amended, p. 528, § 3, effective July 1. L. 93: (1)(f)(II) amended, p. 1772, § 25, effective June 6; (1)(i) and (1)(j) amended, p. 574, § 2, effective July 1. L. 2000: (1)(f)(III) amended, p. 1839, § 7, effective August 2. L. 2004: (1)(f)(II) amended, p. 148, § 51, effective July 1. L. 2014: IP(1), (1)(a), and (1)(e) amended and (1)(b) and (1)(g) repealed, (SB 14-209), ch. 396, p. 1995, § 1, effective August 6. L. 2020: IP(1), (1)(a)(II), (1)(d), (1)(e), IP(1)(f), (1)(i), and (1)(j) amended, (1)(c) repealed, and (2) added, (HB 20-1136), ch. 87, p. 348, § 2, effective September 14.

10-3-217. Federally guaranteed or insured real estate loans.

Domestic insurance companies may invest in obligations for the payment of money secured by real estate mortgages or deeds of trust which are either guaranteed or insured by the United States, any state, territory, or district thereof, or by any agency, instrumentality, or political subdivision of one or more of the foregoing, if any such investment which is in excess of the value limitation set forth in section 10-3-216 (1)(a) is so insured or guaranteed.

Source: L. 69: p. 494, § 5. C.R.S. 1963: § 72-2-23.

10-3-218. Real estate for use in company's business.

Domestic insurance companies may invest in real estate for the accommodation of the company's business, but the aggregate investments by a company that may be admitted assets under this section shall not exceed fifteen percent of the company's admitted assets unless the commissioner has given prior approval of a greater aggregate investment. Any space in the company's home office building that is not required for its use may be rented to others. The commissioner may approve investments under this section which in the aggregate will not exceed twenty percent of the company's admitted assets, upon a finding that such investments do not render the company's operation hazardous, or its condition unsound, to the public or its policyholders.

Source: L. 69: p. 494, § 5. C.R.S. 1963: § 72-2-24. L. 81: Entire section amended, p. 529, § 4, effective July 1. L. 2001: Entire section amended, p. 280, § 3, effective March 30.

10-3-219. Real estate acquired in satisfaction of indebtedness.

1. The following shall be admitted assets:
   1. Such real estate as has been mortgaged to the company in good faith, by way of security for loans or for money due it;
   2. Such real estate as is conveyed to the company in good faith in satisfaction of debts previously contracted in the course of its business;
   3. Such real estate as is purchased at sales under execution issued on judgments and decrees based upon debts due, or at foreclosure sales under mortgages or deeds of trust owned or held by the company or obtained by redemption as junior judgment creditor or mortgagee.

Source: L. 69: p. 494, § 5. C.R.S. 1963: § 72-2-25.

10-3-220. Real estate for production of income - definition.

1. A domestic insurance company may invest in real estate for the production of income, subject to the following provisions:
   1. The aggregate investments by a company which may be admitted assets under this section shall not exceed ten percent of the company's admitted assets.
   2. The investment in any single parcel of real estate which may be an admitted asset under this section shall not exceed five percent of the company's admitted assets.
   3. Real estate qualifying as an admitted asset under section 10-3-218 or 10-3-219 may, at the option of the company, be an admitted asset under this section if such real estate is otherwise eligible under the provisions of this section.
2. 1. "Real estate", as used in this section, means real property; interests in real property, such as leaseholds; minerals and oil and gas that have not been severed from the fee interest; and improvements and fixtures located on or in real property.
   2. "Real estate" does not include mineral estates that have been severed from the fee interest.

Source: L. 69: p. 494, § 5. C.R.S. 1963: § 72-2-26. L. 2001: (2) amended, p. 281, § 4, effective March 30. L. 2020: (2) amended, (HB 20-1136), ch. 87, p. 350, § 3, effective September 14.

10-3-221. Tangible personal property for production of income. (Repealed)

Source: L. 69: p. 494, § 5. C.R.S. 1963: § 72-2-27. L. 2001: (1) repealed, p. 281, § 5, effective March 30.

10-3-222. Policy loans. (Repealed)

Source: L. 69: p. 495, § 5. C.R.S. 1963: § 72-2-28. L. 71: p. 709, § 1. L. 2001: Entire section repealed, p. 281, § 6, effective March 30.

10-3-223. Accounts in building or savings and loan associations. (Repealed)

Source: L. 69: p. 495, § 5. C.R.S. 1963: § 72-2-29. L. 77: Entire section amended, p. 456, § 3, effective July 1. L. 2001: Entire section repealed, p. 281, § 7, effective March 30.

10-3-224. Time deposits. (Repealed)

Source: L. 69: p. 495, § 5. C.R.S. 1963: § 72-2-30. L. 88: Entire section amended, p. 401, § 1, effective March 24. L. 2001: Entire section repealed, p. 282, § 8, effective March 30.

10-3-225. Transportation equipment interests.

Domestic insurance companies may invest in equipment trust obligations or certificates which are adequately secured, or in other adequately secured instruments evidencing an interest in transportation equipment wholly or in part within the United States, and the right to receive determined portions of rental, purchase, or other fixed obligatory payments for the use or purchase of such transportation equipment; but the aggregate investments by a company which may be admitted assets under this section shall not exceed ten percent of the company's admitted assets, and the investment in the obligations or certificates of or in relation to any one transportation company, which may be admitted assets under this section, shall not exceed two percent of the investing company's admitted assets.

Source: L. 69: p. 495, § 5. C.R.S. 1963: § 72-2-31.

10-3-226. Equity interests - definition.

1. A domestic insurance company may invest in equity interests in business entities created under the laws of the United States, of a state of the United States or the District of Columbia, or of Canada or any province of Canada, but the aggregate value of all equity interests that may be admitted assets under this section must not exceed ten percent of the company's admitted assets. For the purpose of this limitation on aggregate value, a company may determine the value of all its equity interests that may be admitted assets under this section on the basis of the aggregate initial cost of the equity interests in lieu of determining the value of all of the equity interests as provided in section 10-3-214.
2. Notwithstanding the provisions of subsection (1) of this section, a domestic fire, casualty, or multiple-line insurance company may invest an additional twenty-five percent of its admitted assets in preferred and common stocks of any corporation organized under the laws of the United States, any state, territory, or possession of the United States, the District of Columbia, or the Dominion of Canada or any province thereof.
3. Investments authorized by subsections (1) and (2) of this section are subject to the following restrictions at the time of investment:
   2. Repealed.
   3. If there is a rise in the market value of the aggregate stock investments of a domestic insurance company and if the current market value of the aggregate investments of such company in common and preferred stock exceeds fifty percent of the admitted assets of such company as valued on December 31 of any year, then such company shall, on or before March 1 of the following year, liquidate a portion of such investments so that the market value of such stock investments does not exceed fifty percent of the company's admitted assets.
   4. 1. Investments in common stock in any one corporation, at the time of investment, must not exceed two percent of the admitted assets of the investing insurance company, and, at the time of investment, an insurance company shall not purchase more than five percent of the outstanding shares of common stock of any one corporation.
      2. This subsection (3)(d) does not apply to investments in mutual funds, open-end index funds, or exchange-traded index funds.
   5. This section shall not apply to investments made pursuant to the provisions of section 10-3-802.
   6. Investments in equity interests that are not listed on a nationally registered securities exchange or a securities market regulated under the "Securities Exchange Act of 1934", 15 U.S.C. sec. 78a et seq., as amended, must not exceed five percent of the admitted assets of the investing company.
4. As used in this section, "equity interest" means:
   1. Common stock;
   2. Preferred stock;
   3. A trust certificate;
   4. Equity investments in an investment company other than a qualified money market fund, as defined in section 10-3-242 (1);
   5. Investments in a common trust fund of a bank regulated by a federal or state agency;
   6. An ownership interest in a mineral estate that has been severed from the fee interest;
   7. Instruments that are or must be, at the option of the issuer, convertible to equity;
   8. Partnership interests;
   9. Membership interests in limited liability companies;
   10. Investments in mutual funds, other than qualified money market funds as defined in section 10-3-242 (1); or
   11. Investments in open-end index funds or exchange-traded index funds.
5. 1. A domestic insurance company may invest in equity interests in business entities created under the laws of a foreign jurisdiction having a sovereign debt rating of "1" from the securities valuation office of the National Association of Insurance Commissioners if the equity interests otherwise meet the requirements of subsections (1) to (3) of this section; except that the aggregate amount of the foreign equity interests that may be admitted assets under this subsection (5)(a) must not exceed three percent of the company's admitted assets.
   2. This subsection (5) does not apply to a jurisdiction described in subsection (1) of this section.

Source: L. 69: p. 495, § 5. C.R.S. 1963: § 72-2-32. L. 71: p. 755, § 2. L. 73: pp. 842, 1408, §§ 1, 52, 53. L. 75: Entire section R&RE, p. 336, § 3, effective July 1. L. 81: (3)(a) and (3)(b) amended, p. 529, § 5, effective July 1. L. 2020: (1), IP(3), and (3)(d) amended, (3)(a) and (3)(b) repealed, and (3)(f), (4), and (5) added, (HB 20-1136), ch. 87, p. 350, § 4, effective September 14.

10-3-227. Stock for purpose of reinsurance, consolidation, or merger.

1. Domestic insurance companies may invest in stock in any other insurance company authorized to do a similar business to that of the investing company, subject to the following provisions:
   1. No greater amount shall be applied to the acquisition of such stock than the investing company's capital and surplus in excess of the minimum required by law; except that, the commissioner may, by written order prior to such acquisition, permit the application of a greater amount thereto.
   2. A reinsurance, consolidation, or merger between the investing company and such other insurance company shall be effected within two years of the acquisition of such stock or within such extension of such period as may be granted by the commissioner.

Source: L. 69: p. 496, § 5. C.R.S. 1963: § 72-2-34.

10-3-228. Collateral loans.

1. Domestic insurance companies may invest in collateral loans secured by the pledge of any one or more investments allowed for collateral loans, as provided by nationally recognized insurance statutory accounting principles, subject to the following provisions:
   1. The collateral pledged shall be legally assignable and validly assigned to the lending company.
   2. As at date made, no such loan shall exceed in amount seventy-five percent of the value of the collateral pledged.
   3. At no time shall the admitted value of a collateral loan be in excess of the actual market value of the collateral pledged.
   4. If any of the collateral pledged and taken into account to qualify a loan as an admitted asset under this section is of a category which, if invested in directly, would be subject to a limitation expressed as a percentage of the investing company's admitted assets, then, for the purpose of such limitation, so much of the loan as is so qualified by such collateral will be deemed to be a direct investment in such category.
   5. No loan shall qualify as an admitted asset under this section unless limited to a term not exceeding five years or, if less, the maturity date, if any, of any of the collateral taken into account in qualifying the loan as an admitted asset under this section.

Source: L. 69: p. 496, § 5. C.R.S. 1963: § 72-2-35. L. 2002: IP(1) amended, p. 1012, § 5, effective June 1. L. 2004: IP(1) amended, p. 1063, § 10, effective July 1.

10-3-228.5. Securities lending - repurchase - reverse repurchase - dollar roll transactions.

1. For the purposes of this section, unless the context otherwise requires:
   1. "Dollar roll transaction" means two simultaneous transactions with settlement dates no more than ninety-six days apart so that in one transaction an insurer sells to a business entity and in the other transaction the insurer is obligated to purchase, from the same business entity, substantially similar securities of the following types:
      1. Mortgage-backed securities issued, assumed, or guaranteed by the government national mortgage association, the federal national mortgage association, the federal home loan mortgage corporation, or their respective successors; and
      2. Other mortgage-backed securities referred to in section 106 of Title I of the "Secondary Mortgage Market Enhancement Act of 1984", 15 U.S.C. sec. 77r-1, as amended.
   2. "Repurchase transaction" means a transaction in which an insurer purchases securities from a business entity that is obligated to repurchase the purchased securities or equivalent securities from the insurer at a specified price, either within a specified period of time or upon demand.
   3. "Reverse repurchase transaction" means a transaction in which an insurer sells securities to a business entity and is obligated to repurchase the sold securities or equivalent securities from the business entity at a specified price, either within a specified period of time or upon demand.
   4. "Securities lending transaction" means a transaction in which securities are loaned by an insurer to a business entity that is obligated to return the loaned securities or equivalent securities to the insurer, either within a specified period of time or upon demand.
2. An insurer may engage in securities lending, repurchase, reverse repurchase, and dollar roll transactions as set forth in this section. The insurer shall enter into a written agreement for securities lending, repurchase, reverse repurchase, and dollar roll transactions. Such agreements shall require that each transaction terminate no more than one year from its inception.
3. Cash received in a transaction under this section shall be invested in accordance with this article and in a manner that recognizes the liquidity needs of the transaction or is used by the insurer for its general corporate purposes.
4. So long as the transaction remains outstanding, the insurer, or its agent or custodian, shall maintain as acceptable collateral received in a transaction under this section, either physically or through the book entry systems of the federal reserve, depository trust company, participants' trust company, or other securities depositories approved by the commissioner, any of the following:
   1. Possession of the acceptable collateral;
   2. A perfected security interest in the acceptable collateral; or
   3. In the case of a jurisdiction outside of the United States, title to, or rights of a secured creditor to, the acceptable collateral.
5. The limitations of section 10-3-215 (1)(e) and section 10-3-215.5 shall not apply to the business entity counter-party exposure created by transactions under this section. An insurer shall not enter into a transaction under this section, other than a dollar roll transaction, if, as a result of and after giving effect to the transaction:
   1. The aggregate amount of securities then loaned, sold to, or purchased from any one business entity counter-party under this section would exceed five percent of its admitted assets; and in calculating the amount sold to or purchased from a business entity counter-party under repurchase or reverse repurchase transactions, effect may be given to netting provisions under a master written agreement; or
   2. The aggregate amount of all securities then loaned, sold to, or purchased from all business entities under this section would exceed forty percent of its admitted assets.
6. The amount of collateral required for securities lending, repurchase, and reverse repurchase transactions is the amount required pursuant to the provisions of the purposes and procedures manual of the national association of insurance commissioners' securities valuation office or pursuant to a successor to such publication.

Source: L. 2001: Entire section added, p. 282, § 9, effective March 30.

10-3-229. Investments for purposes of compliance in other jurisdictions.

Admitted assets shall consist of such other securities and investments as may be necessary to comply with the laws or the departmental rules of other states or nations in which the company may do business.

Source: L. 69: p. 497, § 5. C.R.S. 1963: § 72-2-36.

10-3-230. Additional investments.

1. A domestic insurance company may invest in any additional investments, except items specifically defined as nonadmitted assets in this title 10, other than article 15 of this title 10, and article 14 of title 24, without regard to any limitation, condition, restriction, or exclusion set forth in sections 10-3-215 to 10-3-229 and 10-3-242, and regardless of whether the same or a similar type of investment has been included in or omitted from these sections, subject to the following:
   1. The total amount of indebtedness secured by a lien on any single parcel of real property is an admitted asset only to the extent that such indebtedness does not exceed the value limitation set forth in section 10-3-216 (1)(a).
   2. Notwithstanding the provisions of paragraph (a) of this subsection (1), indebtedness, subject to the provisions of section 10-3-216 (1)(h), is an admitted asset only to the extent that such indebtedness does not exceed ninety-five percent of the current value of the real property. The aggregate investment by a company which may be admitted assets under this paragraph (a.1) shall not exceed twenty percent of the limits allowable under paragraph (c) of this subsection (1).
   3. The amount of indebtedness secured by a pledge of any collateral shall be an admitted asset only to the extent that such indebtedness does not exceed the value limitation set forth in section 10-3-228 (1)(b).
   4. The aggregate investments by a company which may be admitted assets under this section shall not exceed the lesser of five percent of its admitted assets or fifty percent of the amount by which the sum of the par value of its outstanding capital stock, if any, and its surplus exceeds the sum of the minimum capital, if any, and the minimum surplus required of such company under the applicable provision of section 10-3-201.
   5. The admitted asset value of investments in mortgage loans must not exceed the value limitations as set forth in section 10-3-216 (1)(i), (1)(j), and (2).

Source: L. 69: p. 497, § 5. C.R.S. 1963: § 72-2-37. L. 70: p. 120, § 17. L. 71: p. 710, § 1. L. 81: IP(1) amended, p. 530, § 6, effective July 1. L. 85: IP(1) amended, p. 380, § 3, effective May 1. L. 92: IP(1) amended, p. 1550, § 42, effective May 20. L. 93: (1)(a.1) and (1)(d) added, p. 573, § 1, effective July 1. L. 2002: IP(1) amended, p. 1012, § 6, effective June 1. L. 2004: IP(1) amended, p. 1063, § 11, effective July 1. L. 2012: IP(1) amended, (HB 12-1266), ch. 280, p. 1506, § 31, effective July 1. L. 2020: IP(1) and (1)(d) amended, (HB 20-1136), ch. 87, p. 352, § 5, effective September 14.

10-3-231. Valuation of investments.

1. 1. Subject to the provisions of paragraphs (b), (c), and (d) of this subsection (1), all obligations having a fixed term and rate may, if not in default as to principal or interest, be valued as follows: If purchased at par, at the par value; if purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made.
   2. The purchase price shall in no case be taken at a higher figure than the actual market value at the time of purchase, plus brokerage charges paid in the acquisition of such obligations.
   3. No such obligation shall be carried at above the call price for the entire issue during any period within which the obligation may be so called, and premiums paid at purchase shall be amortized by the scientific method to the first call date at which the entire issue may be redeemed.
   4. Obligations subject to amortization under the published findings of the national association of insurance commissioners shall be carried at their amortized values. Obligations which do not qualify for amortization shall be reported at their market value or a book value based on an amortized computation, whichever is lower.
2. 1. Common stocks shall be valued at their market value, as determined by customary method, or, at the option of the company, they may be carried at cost if cost is less than market value. If no publicly traded market quotation is available, the value of the stocks shall be based on the pro rata share of the issuing company's net worth as shown by its audited financial statement or, in the case of an insurance company, the pro rata share of its statutory net worth.
   2. Preferred stocks shall be valued in accordance with procedures promulgated annually by the valuations committee of the national association of insurance commissioners.
3. Other property purchased by a company may be valued at not more than its cost plus the cost of capitalized additions and permanent improvements, less depreciation. Depreciation shall be computed under the straight line method or, at the option of the company, under any other method resulting in larger accumulated depreciation at any given time. Depreciation of any buildings shall be based upon an estimated useful life of not more than fifty years.
4. Property acquired in satisfaction of a debt shall be valued at its fair market value or the amount of the debt, including capitalized taxes and expenses, whichever amount is less.
5. Property originally acquired in satisfaction of a debt and subsequently transferred to qualification under section 10-3-220 or 10-3-230 shall be valued as provided in subsection (3) of this section, and its cost shall be deemed to be its value at time of transfer determined under subsection (4) of this section.
6. To the extent investments are valued by the securities valuation office of the national association of insurance commissioners, all investments owned by domestic insurance companies shall be valued in accordance with the most recently published valuations of the securities valuation office. Other investments not valued by the securities valuation office shall be valued as otherwise is provided in this section, or, if not otherwise provided in this section, in accordance with procedures promulgated by the national association of insurance commissioners.

Source: L. 69: p. 497, § 5. C.R.S. 1963: § 72-2-38. L. 71: p. 711, § 1. L. 81: (2)(a) amended, p. 530, § 7, effective July 1. L. 91: (6) added, p. 1247, § 8, effective July 1.

10-3-232. Liens for certain purposes permitted.

For the purposes of section 10-3-216, the existence of any lien existing by law, for the payment of any bonds, indebtedness, or assessments of, or created by a levy of, any special improvement district, any tunnel district, any conservation district, any irrigation district, any other district or territory, any municipality or quasi-municipality, or any state in which any real estate is situated, or by the United States, shall not prevent mortgages, trust deeds, or other encumbrances upon such real estate, if otherwise first liens, from being admitted assets of domestic insurance companies, if the property securing such mortgage, deed of trust, or other encumbrance is not delinquent in the payment of any installment or interest upon any such bonds, indebtedness, or assessments at the time such real estate loan is made.

Source: L. 69: p. 498, § 5. C.R.S. 1963: § 72-2-39.

10-3-233. Disposition of certain real estate.

Any parcel of real estate qualifying as an admitted asset under section 10-3-218 or 10-3-219 at the time of its acquisition by the company and which has not been transferred to qualification as an admitted asset under any other section of this part 2 shall be sold within five years after such acquisition or within five years after its use for the accommodation of the company's business has entirely ceased, whichever is later, unless the company procures a certificate from the commissioner that the company's interests will suffer by such a sale, in which event the time may be extended as the commissioner shall direct in such certificate.

Source: L. 69: p. 498, § 5. C.R.S. 1963: § 72-2-40. L. 81: Entire section amended, p. 530, § 8, effective July 1.

10-3-234. Approval and record of investments.

1. No investment, loan, or sale thereof shall, except as to loans on a life insurance company's policies or annuity and supplementary contracts, be made by any domestic insurance company:
   1. Without the advance approval of its board of directors or of a committee appointed by such board and charged with the duty of making such investments, loans, or sales or of an officer charged with such duty; or
   2. Unless the transaction is:
      1. Transacted in compliance with a written policy or plan approved by its board of directors prior to the transaction; and
      2. Ratified by such board or by a committee appointed by such board charged with the duty of reviewing such investments, loans, and sales at a meeting held not less than quarterly.
2. A permanent written record of all such investments, loans, and sales shall be maintained by the company.

Source: L. 69: p. 498, § 5. C.R.S. 1963: § 72-2-41. L. 2000: Entire section amended, p. 445, § 1, effective August 2.

10-3-235. Certain admitted assets deemed securities for deposit purposes.

1. For purposes of the minimum capital or guaranty fund deposit required by section 10-3-201, the following admitted assets shall be deemed to be securities eligible for such deposit: Any asset qualified as an admitted asset under sections 10-3-215 to 10-3-217 and 10-3-225.
2. For purposes of optional reserve deposits permitted by section 10-7-101 (3) or other deposits permitted but not required by this title (except article 15) and article 14 of title 24, C.R.S., the following admitted assets, in addition to those referred to in subsection (1) of this section, shall be deemed to be securities eligible for such deposits: Any asset qualified as an admitted asset under section 10-3-220 or 10-3-226 to 10-3-228, and any life insurance policy, to the extent of the company's interest in the cash value thereof.
3. If a company deposits the stock of a wholly owned insurance subsidiary with the commissioner as an optional reserve deposit, the value of such stock for purposes of such deposit shall be reduced by the value of any cash or securities owned by the subsidiary and on deposit with the commissioner or with the duly authorized officer in any other jurisdiction as a deposit of the subsidiary required or permitted by law.
4. For purposes of all deposits required or permitted by this title (except article 15) and article 14 of title 24, C.R.S., assets shall be valued at their fair market value; except that, for purposes of optional reserve deposits permitted by section 10-7-101 (3), or other deposits permitted but not required by said references, bonds and mortgages shall be valued at their current book values under the methods used in determining admitted asset values for annual statement purposes.

Source: L. 69: p. 499, § 5. C.R.S. 1963: § 72-2-42. L. 92: (2) and (4) amended, p. 1550, § 43, effective May 20. L. 2002: (1) and (2) amended, p. 1013, § 7, effective June 1. L. 2004: (2) and (4) amended, p. 901, § 18, effective May 21. L. 2012: (2) and (4) amended, (HB 12-1266), ch. 280, p. 1506, § 32, effective July 1.

10-3-236. Assets acquired through merger, consolidation, or reinsurance.

Any investments acquired through merger, consolidation, or reinsurance that are not admitted assets under this title 10, other than article 15 of this title 10, and article 14 of title 24 are not deemed admitted assets by reason of their acquisition through merger, consolidation, or reinsurance.

Source: L. 69: p. 499, § 5. C.R.S. 1963: § 72-2-43. L. 92: Entire section amended, p. 1551, § 44, effective May 20. L. 2004: Entire section amended, p. 902, § 19, effective May 21. L. 2012: Entire section amended, (HB 12-1266), ch. 280, p. 1506, § 33, effective July 1. L. 2020: Entire section amended, (HB 20-1136), ch. 87, p. 352, § 6, effective September 14.

10-3-237. Assets acquired under prior law.

1. Notwithstanding any condition, restriction, or exclusion set forth in sections 10-3-215 to 10-3-229, any asset held by a domestic insurance company on May 31, 1969, that met the requirements of the law in effect immediately prior to that date for an investment of the company's reserves, paid-up capital stock, and other liabilities is an admitted asset of the company, but, if any such asset is in a category for which a limitation expressed in terms of a percentage of admitted assets is prescribed in section 10-3-218, 10-3-220, 10-3-225, or 10-3-226, the asset shall be taken into account in determining whether any additional investment in that category made after May 31, 1969, may be an admitted asset under the section prescribing the limitation.
2. Notwithstanding any other provision of this title (except article 15) and article 14 of title 24, C.R.S., any asset held by a company on May 31, 1969, that is not an admitted asset under section 10-1-102 (2) or subsection (1) of this section and that did not meet the requirements of the law in effect immediately prior to such date for an investment of the company's reserves, paid-up capital stock, and other liabilities but which, under such law, would have been taken into account as an asset in determining the surplus of the company shall be taken into account as an admitted asset at all times at which the company has aggregate admitted assets under section 10-1-102 (2) and subsection (1) of this section in an amount at least equal to the total of its reserves, paid-up capital stock, and all other liabilities.
3. Notwithstanding any condition, restriction, or exclusion set forth in section 10-3-215 (1)(e), 10-3-216 (1)(f), or 10-3-226, any asset held prior to July 1, 1975, or thereafter acquired by exercise of warrants or other rights which were held prior to that date which met or would have met the requirements of the law in effect immediately prior to July 1, 1975, for an investment of the company's reserves, paid-up stock, and other liabilities shall be an admitted asset of the company; but, if any such asset is in a category for which a limitation expressed in terms of a percentage of admitted assets is prescribed in such sections, such asset shall be taken into account in determining whether any additional investment in such category made after July 1, 1975, may be an admitted asset under the section prescribing such limitation.
4. Notwithstanding any condition, restriction, or exclusion set forth in section 10-3-218, any asset held by a company on July 1, 1981, which met the requirements of the law in effect immediately prior to such date for an investment of the company qualified as an admitted asset under this part 2 shall remain an admitted asset; but such asset shall be taken into account in determining whether any additional investment made on or after July 1, 1981, may be an admitted asset under this part 2.

Source: L. 69: p. 499, § 5. C.R.S. 1963: § 72-2-44. L. 75: (3) added, p. 337, § 4, effective July 1. L. 81: (4) added, p. 530, § 9, effective July 1. L. 92: (2) amended, p. 1551, § 45, effective May 20. L. 2002: (2) amended, p. 1013, § 8, effective June 1. L. 2003: (2) amended, p. 616, § 10, effective July 1. L. 2004: (2) amended, p. 1063, § 12, effective July 1. L. 2012: (2) amended, (HB 12-1266), ch. 280, p. 1506, § 34, effective July 1. L. 2020: (1) amended, (HB 20-1136), ch. 87, p. 352, § 7, effective September 14.

10-3-238. Refunds.

Whenever it appears to the satisfaction of the commissioner that, because of some mistake of fact, error in calculation, or erroneous interpretation of a statute of this or any other state, any insurer or other person engaged in the business of insurance in this state has paid to the commissioner or to the state of Colorado, pursuant to any provision of this title (except article 15) and article 14 of title 24, C.R.S., any taxes, fees, or other charges in excess of the amount legally chargeable against said insurer or other person during the one-year period immediately preceding the discovery of such overpayment, the commissioner has the authority to refund to such insurer or other person the amount of