CO Code § 11-103-601 (2021)
2021 Colorado Code|Title 11 - Financial Institutions|Article 103 - Organization and Corporate Functions|Part 6 - Indemnification and Insurance|§ 11-103-601. Director and Officer Insurance and Fidelity Bonds - Legislative Declaration

  The directors of a state bank shall require good and sufficient fidelity bonds on all active officers and employees, whether or not they draw salary or compensation, which bonds shall provide for indemnity to such bank on account of any losses sustained by it as the result of any dishonest, fraudulent, or criminal conduct by them acting independently or in collusion or combination with any person. Such bonds may be in individual, schedule, or blanket form, and the premiums therefor shall be paid by the bank.    The said directors shall also require suitable insurance protection to the bank against burglary, robbery, theft, and other insurable hazard to which the bank may be exposed in the operations of its business on the premises or elsewhere.    The directors shall be responsible for prescribing, at least once in each calendar year, the amount or penal sum of the bonds and policies specified in this section and the sureties or underwriters thereon after giving due and careful consideration to all known elements and factors constituting such risk or hazard. Such action shall be recorded in the minutes of the board of directors.      The general assembly hereby finds, determines, and declares that the following is enforceable and in conformity with the public policy of this state, as expressed in this code, including the provisions of section 11-101-102:   Any insurance policy, form, contract, endorsement, or certificate in effect or issued on or after April 30, 1993, that provides insurance coverage to directors or officers, or both, of a bank but that does not grant coverage or that excludes coverage for claims made by any depository insurance organization or any other state or federal corporation, organization, or entity acting as receiver, conservator, or liquidator of such bank, whether in its own name or on behalf of any other person or entity; or    Any fidelity bond, financial institution bond, or depository institution bond in effect or issued on or after April 30, 1993, that provides for termination of such bond upon the taking over of the bank by a receiver or other liquidator or by state or federal officials.       No provision of part 8 of this article shall be construed to contravene or modify the expressed public policy set forth in this subsection (4).         History. Source: L. 2003: Entire article added with relocations, p. 1094, § 3, effective July 1.    Editor's note:   This section is similar to former § 11-3-120 as it existed prior to 2003.   ANNOTATION   FDIC claim is not barred under the “insured v. insured” exclusion since FDIC is not considered an “insured” within the meaning of policy of insurance. To exclude liability for claims raised by FDIC as a receiver for an insolvent bank would defeat the provisions of the Banking Code, which recognizes the power of a receiver to gather and distribute bank assets. FDIC v. Bowen, 865 P.2d 868 (Colo. App. 1993) (decided under law prior to 1993 amendment of former § 11-3-120 ).   Applied in FDIC v. Kan. Bankers Sur. Co., 105 F. Supp. 3d 1234 (D. Colo. 2015 ), aff'd, 840 F.3d 1167 (10th Cir. 2016).