CO Code § 10-3-201 (2021)
2021 Colorado Code|Title 10 - Insurance|Article 3 - Regulation of Insurance Companies|Part 2 - Financial Affairs|§ 10-3-201. Cash Capital - Guaranty Fund - Deposit

 TYPE OF COMPANY TOTAL CAPITAL OR GUARANTY FUND PLUS SURPLUS Life $1,500,000.00 Fire .00 1,500,000 Casualty .00 1,500,000 Multiple Line .00 2,000,000 Title Insurance 750,.00 000   (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 Any extension granted pursuant to paragraph (c) of this subsection (1) shall be automatically rescinded in the event of such a change of control.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    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.   History. 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. History. 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 .   ANNOTATION   Analysis     I. GENERAL CONSIDERATION.    II. DEPOSIT FOR BENEFIT OF POLICYHOLDERS.     I. GENERAL CONSIDERATION.   Policyholders may not attack assessment where certificate unlawfully issued. Policyholders may not attack an assessment as being invalid for the reason that the insurance commissioner unlawfully issued certificates of authority permitting the company to do business when its financial condition was impaired and it had failed to maintain the required reserve and surplus. Aronoff v. Pioneer Mut. Comp. Co., 134 Colo. 395 , 304 P.2d 1083 (1956).   II. DEPOSIT FOR BENEFIT OF POLICYHOLDERS.   This section provides that no life insurance company shall be permitted to be incorporated for business until a deposit, either in cash or in approved securities, is made with the state as a guaranty fund to protect policyholders and the business of the company. Greiger v. Salzer, 63 Colo. 167 , 165 P. 240 (1917).   An express trust is specifically set up for the benefit of all policyholders under this section. Ogden First Fed. Sav. & Loan Ass'n v. Armstrong, 111 Colo. 309 , 141 P.2d 173 (1943).   Policyholders have vested right in securities deposited. Persons procuring insurance policies while statutes requiring the deposit of securities for their protection are in force have a vested right in and to securities theretofore deposited with the insurance commissioner under the terms of the statutes. Cochrane v. Pacific States Life Ins. Co., 93 Colo. 462 , 27 P.2d 196 (1933).   It is beyond the power of the general assembly to authorize a withdrawal of the deposits over the objection of such policyholders. Cochrane v. Pacific States Life Ins. Co., 93 Colo. 462 , 27 P.2d 196 (1933).   Withdrawal not authorized until all claims are satisfied in full. The capital of a company is impounded and cannot be returned to the company even when so authorized by subsequent legislation until all who took out policies while the law was in force have had their claims satisfied in full. Ogden First Fed. Sav. & Loan Ass'n v. Armstrong, 111 Colo. 309 , 141 P.2d 173 (1943).