CO Code § 10-3-105 (2021)
2021 Colorado Code|Title 10 - Insurance|Article 3 - Regulation of Insurance Companies|Part 1 - General|§ 10-3-105. Certificate of Authority to Do Business - Companies Prohibited - Definitions

  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.    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.      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:   It is not subject to any form of subsidy;    It does not engage in practices that discriminate in violation of section 24-34-402, C.R.S.;    The ownership or financial control will not create the presence of any sovereign immunity in the insurer;    Appropriate measures and controls exist to avoid security problems resulting from the insurer's access to confidential information and data of its insured; and    The ownership or financial control will not result in substantial or undue influence being asserted over the insurer.       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.         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.    As used in this subsection (4), “insurance producer” shall have the same meaning as set forth in section 10-2-103 (6).    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.        History. 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. History. 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 .   ANNOTATION   Annotator's note. Cases relevant to § 10-3-105 decided prior to its earliest source, L. 13, p. 334 , § 21 (1), have been included in the annotations to this section.   After a company is once established according to the provisions of this section upon proper evidence, the validity of the company's organization cannot be questioned or its legal existence denied by any of its members. Aronoff v. Pioneer Mut. Comp. Co., 134 Colo. 395 , 304 P.2d 1083 (1956).   The corporation is responsible to the government, and until forfeiture may continue to exercise its legitimate functions. Aronoff v. Pioneer Mut. Comp. Co., 134 Colo. 395 , 304 P.2d 1083 (1956).   Even when commissioner unlawfully issued certificate. 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).   Judicial proceedings must be resorted to, and judgment of ouster made to effect a dissolution. Aronoff v. Pioneer Mut. Comp. Co., 134 Colo. 395 , 304 P.2d 1083 (1956).   Contracts of insurance made out of the state by correspondence upon property in the state are valid and enforceable. French v. People, 6 Colo. App. 311, 40 P. 463 (1895).   Compliance with section presumed on appeal. An action by an insurance company where there was introduced in evidence a document to show its authority to do business in this state, and the abstract of record prepared on appeal fails to contain the document, it will be presumed that the document introduced in evidence was a certificate of the superintendent of insurance that the requirements of the law of the state had been complied with. Thompson v. Commercial Union Assurance Co., 20 Colo. App. 331, 78 P. 1073 (1904).