reglab/statecodes huggingface dataset:
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-103 - Definitions

As used in this article, unless the context otherwise requires:
(1)
"Affiliated company" means any company that directly or indirectly owns or controls a pure captive insurance company and any company owned or controlled, directly or indirectly, by a parent or subsidiary.
(2)
"Captive insurance company" means a pure captive insurance company or a group captive insurance company.
(3)
"Commissioner" means the commissioner of insurance.
(4)
"Group" means any association of individual professional practitioners, corporations, partnerships, limited liability companies, or associations with substantially similar or related risks, the members of which collectively own, control, or hold with power to vote all of the outstanding voting securities or other ownership interest of a group captive insurance company.
(5)
"Group captive insurance company" means any domestic insurance company licensed under the provisions of this article for the purpose of making insurance and reinsurance, including any company organized under the federal "Liability Risk Retention Act of 1986", as amended,
15 U.S.C. secs. 3901
to
3905
. Such insurance and reinsurance shall be limited to the risks, hazards, and liabilities of its group members and employee benefits coverages.
(6)
"Impairment" means that a captive insurance company's permissible assets are less than its liabilities, including as a liability the aggregate amount of any outstanding capital stock, or that its capital and surplus are less than the capital and surplus established pursuant to section
10-6-116
.
(7)
"Insolvency" means that a captive insurance company's permissible assets are less than all of its liabilities, excluding from such liabilities the aggregate amount of any outstanding capital stock.
(8)
"Parent" means a corporation, partnership, or individual who directly or indirectly owns, controls, or holds with power to vote more than fifty percent of the outstanding voting securities or other ownership interest of a pure captive insurance company.
(9)
"Pure captive insurance company" means any domestic insurance company licensed under the provisions of this article for the purpose of making insurance and reinsurance. Such insurance and reinsurance shall be limited to the risks, hazards, and liabilities of its parent and affiliated entities along with employee benefits coverages.
L. 72: p. 429, § 1. C.R.S. 1963: § 72-36-4. L. 76: (3), (4), and (9) amended, p. 380, § 1, effective April 6. L. 87: (3), (4), (5), and (7) amended and (6.1) to (6.3) added, p. 435, § 1, effective May 22. L. 89: (3) and (10) amended, p. 462, § 2, effective April 15. L. 91: (9) amended, p. 1224, § 2, effective May 24. L. 94: Entire section R&RE, p. 541, § 2, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-104 - [Repealed]

L. 72: p. 428, § 1. C.R.S. 1963: § 72-36-3. L. 76: (2) amended, p. 381, § 2, effective April 6. L. 87: (1)(a)(II) amended, p. 436, § 2, effective May 22. L. 91: (2) amended, p. 1224, § 3, effective May 24. L. 94: Entire section repealed, p. 554, § 20, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-105 - Employee benefits - minimum coverages

(1)
Any captive insurance company issuing employee benefits coverages, as approved by the commissioner, in its plan of operation shall provide the minimum mandated insurance coverages required of insurance companies in the state.
(2)
(a)
(Deleted by amendment, L. 91, p. 1224, § 4, effective May 24, 1991.)
(b)
(Deleted by amendment, L. 94, p. 542, § 3, effective April 6, 1994.)
L. 72: p. 430, § 1. C.R.S. 1963: § 72-36-5. L. 76: (1) and (2)(a) amended, p. 381, § 3, effective April 6. L. 87: (2) amended, p. 436, § 3, effective May 22. L. 89: (1) amended, p. 463, § 3, effective April 15. L. 91: Entire section amended, p. 1224, § 4, effective May 24. L. 94: Entire section amended, p. 542, § 3, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-106 - Names of companies

No captive insurance company shall adopt the name of any existing company nor any name which may be misleading to the public.
L. 72: p. 430, § 1. C.R.S. 1963: § 72-36-6. L. 94: Entire section amended, p. 543, § 4, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-108 - Control of operations

The business of each captive insurance company shall be managed by a board of directors or other governing body consisting of not less than three persons. The organizational documents or bylaws shall provide for the terms, meetings, and elections of the directors and officers of the governing body. No individual may serve as a director or officer who has been convicted of fraud involving any financial institution or of a felony involving misuse of funds.
L. 72: p. 431, § 1. C.R.S. 1963: § 72-36-8. L. 89: (1) amended, p. 464, § 5, effective April 15. L. 94: Entire section R&RE, p. 545, § 6, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-109 - [Repealed]

L. 72: p. 432, § 1. C.R.S. 1963: § 72-36-9. L. 94: Entire section repealed, p. 554, § 20, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-110 - [Repealed]

L. 72: p. 432, § 1. C.R.S. 1963: § 72-36-10. L. 94: Entire section repealed, p. 554, §20, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-111 - [Repealed]

L. 72: p. 432, § 1. C.R.S. 1963: § 72-36-11. L. 89: Entire section amended, p. 464, § 6, effective April 15. L. 94: Entire section repealed, p. 554, § 20, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-112 - [Repealed]

L. 72: p. 432, § 1. C.R.S. 1963: § 72-36-12. L. 89: Entire section amended, p. 464, § 7, effective April 15. L. 94: Entire section repealed, p. 554, § 20, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-113 - Authority to do business

(1)
The certificate of authority issued to a captive insurance company shall expire on June 30 each year and shall be renewed annually, upon payment of all required fees and filing of all lawfully required reports, if the company has continued to comply with the laws of this state.
(2)
Within thirty business days from the day the division of insurance receives a complete filing, the division shall render a decision on the application.
L. 72: p. 432, § 1. C.R.S. 1963: § 72-36-13. L. 76: (2) amended, p. 381, § 4, effective April 6. L. 87: (2) amended, p. 437, § 4, effective May 22. L. 91: (2) amended, p. 1225, § 5, effective May 24. L. 92: (1) amended, p. 1562, § 69, effective July 1. L. 94: Entire section amended, p. 545, § 7, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-114 - Reports and statements

(1)
Every captive insurance company doing business in this state shall render to the commissioner a report, signed and sworn to by its chief officers, of its condition as of the end of each fiscal year, which shall be in a form prescribed by the commissioner and contain such information as the commissioner deems necessary. Such report shall be filed within sixty days following the company's fiscal year end. The fiscal year shall be the calendar year for all group captive insurance companies. The commissioner may require that the annual report include the information set forth in the then-current convention blank of the national association of insurance commissioners, including any instructions, procedures, and guidelines consistent with this article.
(2)
The commissioner may prescribe the format and frequency of other reports to be filed, which may include, but shall not be limited to, summary loss reports, quarterly financial statements, audited annual financial statements, and other professional reports.
(3)
(Deleted by amendment, L. 94, p. 545, § 8, effective April 6, 1994.)
L. 72: p. 433, § 1. C.R.S. 1963: § 72-36-14. L. 89: Entire section amended, p. 464, § 8, effective April 15. L. 94: Entire section amended, p. 545, § 8, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-115 - Grounds and procedure for suspension or revocation of certificate - review by commissioner

(1)
The certificate of authority of a captive insurance company to do business in this state may be revoked or suspended by the commissioner for any violation of this article, including without limitation the following:
(a)
Insolvency or impairment;
(b)
Failure to meet the requirements of section
10-6-116
;
(c)
Refusal or failure to submit an annual report, as required by section
10-6-114
, or any other report required by law or by lawful order of the commissioner;
(d)
Failure to comply with the provisions of its own charter, other organizational documents, bylaws, or approved plan of operation, if such failure renders its operation hazardous to the public or to its policyholders;
(e)
Failure to submit to examination;
(f)
Refusal or failure to pay the cost of examination, required premium taxes, or other penalty or fee assessed as authorized by law;
(g)
Use of methods which, although not otherwise specifically proscribed by law, render its operation hazardous or its condition unsound;
(h)
Refusal or failure otherwise to comply with this article or any other laws of this state.
(2)
If the commissioner finds upon examination, hearing, or other evidence that any captive insurance company has committed any of the acts specified in subsection (1) of this section, the commissioner may, after notice and hearing in accordance with article
4
of title
24
, C.R.S., suspend or revoke such certificate of authority. The commissioner may issue an order appointing a supervisor to monitor the operations of the company if the commissioner deems it in the best interest of the public or of the policyholders of the company. The commissioner may commence a delinquency action pursuant to part 4 of article
3
of this title or a liquidation or rehabilitation action pursuant to part 5 of article
3
of this title.
(3)
Any final decision of the commissioner on any matter pursuant to this section shall be subject to judicial review by the court of appeals pursuant to section
24-4-106(11)
, C.R.S.
L. 72: p. 433, § 1. C.R.S. 1963: § 72-36-15. L. 89: (1)(d) amended, p. 465, § 9, effective April 15. L. 92: (2) amended, p. 1562, § 70, effective May 20. L. 94: Entire section amended, p. 546, § 9, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-116 - Capital and surplus requirements

(1)
No captive insurance company issued a certificate of authority shall be permitted to do any business in this state unless it maintains total capital and surplus of not less than five hundred thousand dollars.
(1.5)
Upon a written finding by the commissioner that the approved plan of operation or the operational results of the captive insurance company require either additional capital or a larger surplus than required by this section, the commissioner may require that additional capital or surplus, or both, be obtained. Additional capital or surplus may be tendered in the form of an irrevocable letter of credit as set forth in subsection (2) of this section.
(2)
Securities acceptable to the commissioner in the amount of three hundred thousand dollars, or such greater amount as determined by the commissioner, shall be held by the commissioner or under the joint control of the commissioner and the captive insurance company. The commissioner shall accept an irrevocable letter of credit, in a form acceptable to the commissioner, issued or confirmed by a qualified United States financial institution as defined in section
10-1-102(17)
on behalf of a captive insurance company in lieu of securities. All securities or letters of credit jointly held shall be the sole property of such captive insurance company and shall be free and clear of any claim or encumbrance.
(3)
Jointly held securities or letters of credit, wherever located, shall be deemed to be held for the benefit of all captive insurance company policyholders.
(4)
The commissioner shall release funds held under joint control upon a showing satisfactory to the commissioner that all debts, obligations, and liabilities of the captive insurance company have been paid and discharged, or adequate provisions for payment and discharge have been made therefor, and the captive insurance company's original certificate of authority has been returned to the commissioner.
L. 72: p. 434, § 1. C.R.S. 1963: § 72-36-16. L. 87: (1) amended, p. 437, § 5, effective May 22. L. 89: (2) amended, p. 465, § 10, effective April 15. L. 92: (2) amended, p. 1562, § 71, effective May 20. L. 94: Entire section amended, p. 547, § 10, effective April 6. L. 2003: (2) amended, p. 617, § 15, effective July 1.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-117 - [Repealed]

L. 72: p. 434, § 1. C.R.S. 1963: § 72-36-17. L. 94: Entire section repealed, p. 554, § 20, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-118 - [Repealed]

L. 72: p. 434, § 1. C.R.S. 1963: § 72-36-18. L. 92: Entire section amended, p. 1563, § 72, effective May 20. L. 94: Entire section repealed, p. 554, § 20, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-119 - [Repealed]

L. 72: p. 435, § 1. C.R.S. 1963: § 72-36-19. L. 87: Entire section amended, p. 437, § 6, effective May 22. L. 92: (1) amended, p. 1563, § 73, effective May 20. L. 94: Entire section repealed, p. 554, § 20, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-120 - Examinations and investigations

(1)
The commissioner or any person so authorized has the authority to examine the financial condition, affairs, and management of any applicant or captive insurance company operating under the laws of this state. For such purpose the commissioner shall have free access to all the books, papers, and documents relating to the business of the company, and the commissioner may summon witnesses and administer oaths and affirmations in the examination of the directors, trustees, officers, agents, or employees of such company and any other person in relation to its affairs, transactions, and conditions. The reasonable cost of examinations of captive insurance companies shall be paid by the company examined and shall include the expenses of the commissioner and the commissioner's assistants.
(2)
The commissioner may use other independent professionals, such as qualified actuaries, risk managers, certified public accountants, or examiners of insurance companies. The commissioner may also accept, as a part of the examination, reports or portions thereof made by the persons specified in this subsection (2). All reasonable expenses and charges of such persons so retained shall be paid directly by the captive insurance company being examined.
L. 72: p. 435, § 1. C.R.S. 1963: § 72-36-20. L. 89: (7) added, p. 465, § 11, effective April 15. L. 91: (7) amended, p. 1248, § 11, effective July 1. L. 94: Entire section R&RE, p. 548, § 11, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-121 - Legal investments

(1)
Group captive insurance companies shall comply with the investment requirements and limitations applicable to other insurance companies under the laws of this state as described in sections
10-1-102(2) and (16)
,
10-3-213
to
10-3-242
, and
10-3-802
.
(2)
(a)
Pure captive insurance companies shall not be subject to any restrictions on investments whatsoever; except that the commissioner may prohibit or limit any investment that threatens the solvency or liquidity of any such company or if such investments are not made in accordance with the approved plan of operation.
(b)
A pure captive insurance company may make loans to its parent company if approved within its plan of operations.
(3)
In lieu of a fidelity bond, the officers, directors, or managers of a captive insurance company shall demonstrate sufficient safeguards to protect the funds of the captive insurance company.
L. 72: p. 436, § 1. C.R.S. 1963: § 72-36-21. L. 87: Entire section amended, p. 438, § 7, effective May 22. L. 89: (2) amended and (3) to (11) added, p. 466, § 12, effective April 15. L. 91: IP(10) amended, p. 1225, § 6, effective May 24. L. 94: Entire section R&RE, p. 549, § 12, effective April 6. L. 2003: (1) amended, p. 617, § 16, effective July 1.
For the regulation of the financial affairs of insurance companies, see part 2 of article 3 of this title 10.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-122 - Reinsurance

(1)
Except as otherwise provided in subsection (2) of this section, any captive insurance company authorized to do business in this state may take credit for reserves on risks ceded to a reinsurer pursuant to part 7 of article
3
of this title and any applicable rules.
(2)
Notwithstanding the provisions of subsection (1) of this section, any captive insurance company may cede risks to a reinsurer not meeting the standards of said subsection (1) and may take reserve credits if the captive insurance company receives prior written approval from the commissioner.
Amended by 2014 Ch. 295, § 6, eff. 1/1/2015.
L. 72: p. 436, § 1. C.R.S. 1963: § 72-36-22. L. 94: Entire section R&RE, p. 549, § 13, effective April 6. L. 2014: (1) amended, (HB 14-1315), ch. 295, p. 1218, § 6, effective 1/1/2015.
For reinsurance generally, see § 10-3-701 .
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-123 - [Repealed]

L. 72: p. 437, § 1. C.R.S. 1963: § 72-36-23. L. 87: (1) amended and (2) and (3) repealed, pp. 438, 439, §§ 8, 10, effective May 22. L. 89: (4) added, p. 467, § 13, effective April 15. L. 94: Entire section repealed, p. 554, § 20, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-124 - [Repealed]

L. 72: p. 437, § 1. C.R.S. 1963: § 72-36-24. L. 87: Entire section repealed, p. 439, § 10, effective May 22.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-125 - Filing of rates

(1)
A group captive insurance company's rates, rate classification systems, or funding levels shall be sufficient to fund expected operations and expenses. The commissioner may require that a pure captive insurance company file rating or funding data if such pure captive insurance company provides or plans to provide employee benefits.
(2)
Rating structures for insurance applied to and paid by employees of a captive insurance company shall not be excessive, inadequate, or unfairly discriminatory.
L. 72: p. 437, § 1. C.R.S. 1963: § 72-36-25. L. 79: (3) amended, p. 377, § 13, effective July 1. L. 87: (1) amended, p. 438, § 9, effective May 22. L. 89: (4) added, p. 467, § 14, effective April 15. L. 94: Entire section amended, p. 549, § 14, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-126 - [Repealed]

L. 72: p. 437, § 1. C.R.S. 1963: § 72-36-26. L. 94: Entire section repealed, p. 554, § 20, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-127 - Guaranty fund coverage - not required

(1)
Any provision of the law to the contrary notwithstanding, no captive insurance company shall be compelled to join or contribute financially to any plan, pool, association, or guaranty or insolvency fund in this state; nor shall any captive insurance company or its insured receive any benefit from such plan, pool, association, or guaranty or insolvency fund for claims arising out of operations of such captive insurance company.
(2)
All policy forms or other evidence of coverage shall clearly disclose that guaranty fund coverage is not available.
L. 72: p. 437, § 1. C.R.S. 1963: § 72-36-27. L. 94: Entire section amended, p. 550, § 15, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-128 - Tax on premiums collected - exemptions - penalties

(1)
All captive insurance companies doing business in this state, except a disqualified insurance company, shall pay to the division of insurance an annual tax on the gross amount of all premiums collected, less premiums or premium credits returned to policyholders, on policies or contracts of insurance covering property or risks in this state and on risks and property situated in any other state in which the insurer has not paid premium tax.
(2)
The tax imposed by subsection (1) of this section shall be the greater of:
(a)
Five thousand dollars; or
(b)
(I)
One-half of one percent of the first twenty-five million dollars, plus one-quarter of one percent of the next fifty million dollars, plus one-tenth of one percent of each dollar thereafter of direct premiums collected, of the captive insurance company, plus:
(II)
One-quarter of one percent of the first twenty million dollars, plus one-tenth of one percent of each dollar thereafter of assumed reinsurance premiums.
(c) and (d)
(Deleted by amendment, L. 94, p. 550, § 16, effective April 6, 1994.)
(e)
Premium tax shall not be payable in connection with the receipt of assets in exchange for the assumption of existing loss reserves and other liabilities.
(2.5)
The minimum tax provided for in paragraph (a) of subsection (2) of this section shall be due and payable on the first day of March of each fiscal year, accompanied by such forms as may be prescribed by the commissioner. The balance of the tax when payable for each fiscal year shall be paid on forms prescribed by the commissioner together with the report required under section
10-6-114 (1)
. The commissioner may by rule require partial payments, to be made in quarterly installments, of the balance of the tax payable.
(3)
The taxes provided for in this section shall constitute all taxes collectible under the laws of this state against any such captive insurance companies, and no other occupation tax or other taxes shall be levied or collected from any captive insurance company by the state or any county, city, or town within this state, except ad valorem taxes on real and personal property used in the production of income.
(4) to (8)
(Deleted by amendment, L. 94, p. 550, § 16, effective April 6, 1994.)
Amended by 2021 Ch. 298, § 13, eff. 6/23/2021.
L. 72: p. 438, § 1. C.R.S. 1963: § 72-36-28. L. 91: (1) and (2) amended, p. 1225, § 7, effective 1/1/1992. L. 94: Entire section amended, p. 550, § 16, effective April 6.
For the legislative declaration in HB 21-1311, see section 1 of chapter 298, Session Laws of Colorado 2021.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-128.5 - Penalties

(1)
The commissioner may charge a late fee of up to one hundred dollars per day for any required or reasonably requested report which is received after the filing deadline.
(2)
Any company failing to pay taxes as specified in this article shall be liable to pay a penalty of up to one hundred dollars for each day of delinquency. If the tax paid is less than the full amount prescribed by this article, interest at the rate of one percent per month or fraction thereof on the unpaid amount shall be charged from the date payment was due until the date full payment is received, and a penalty of up to twenty-five percent of the unpaid amount may be assessed. The amount of taxes and the penalties collected shall be transmitted to the state treasurer and credited to the general fund.
(3)
The assessment of any fee or penalty against a captive insurance company shall be subject to the company's right to request a hearing and to judicial review by the court of appeals pursuant to section
24-4-106(11)
, C.R.S.
(4)
Any director, trustee, officer, agent, or employee of a captive insurance company or any other person who knowingly or willfully makes any materially false certificate, entry, or memorandum upon any of the books or papers of any captive insurance company or upon any statement filed or offered to be filed in the division of insurance or used in the course of any examination, inquiry, or investigation with the intent to deceive the commissioner or any person appointed by the commissioner to make such examination commits a class 2 misdemeanor and shall be punished as provided in section
18-1.3-501
, C.R.S.
L. 94: Entire section added, p. 553, § 17, effective April 6. L. 2002: (4) amended, p. 1468, § 27, effective October 1.
For the legislative declaration contained in the 2002 act amending subsection (4), see section 1 of chapter 318, Session Laws of Colorado 2002.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-129 - Rules of commissioner

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 this article, including rules concerning the establishment and nature of loss reserves.
L. 72: p. 439, § 1. C.R.S. 1963: § 72-36-29. L. 92: Entire section amended, p. 1564, § 74, effective May 20. L. 94: Entire section amended, p. 553, § 18, effective April 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Article 6 - CAPTIVE INSURANCE COMPANIES (§§ 10-6-101 — 10-6-130) › Section 10-6-130 - Laws applicable

(1)
The provisions of law generally applicable to insurance companies shall not apply to captive insurance companies except as specifically provided in this article and except that captive insurance companies are subject to parts 9 and 10 of article
2
of this title and parts 7, 11, and 12 of article
3
of this title.
(2)
Group captive insurance companies are subject to the provisions of section
10-3-208(3) to (7)
, part 2 of article
1
of this title, article
2
of this title, and parts 8 and 14 of article
3
of this title.
(3)
The malpractice reporting requirements of sections
10-1-120
to
10-1-125
shall apply to captive insurance companies.
L. 72: p. 439, § 1. C.R.S. 1963: § 72-36-30. L. 89: Entire section amended, p. 468, § 15, effective April 15. L. 91: Entire section amended, p. 1226, § 8, effective May 24. L. 94: Entire section amended, p. 554, § 19, effective April 6. L. 97: (2) amended, p. 92, § 2, effective March 24. L. 2003: (3) amended, p. 618, § 17, effective July 1.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Article 7 - LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Part 1 - GENERAL (§§ 10-7-101 — 10-7-116) › Section 10-7-103 - [Effective Until 8/7/2024] Life insurance policies - prohibition

(1)
It is unlawful for any foreign or domestic life insurance company to issue or deliver in this state any life insurance policy if it contains any of the following provisions:
(a)
A provision for forfeiture of the policy for failure to repay any loan on the policy, or to pay interest on such loan while the total indebtedness on the policy is less than the loan value thereof; or any provision for forfeiture for failure to repay any such loan or to pay interest thereon, unless such provision contains a stipulation that no such forfeiture shall occur until at least one month after notice has been mailed by the company to the last known address of the insured and of the assignee, if any;
(b)
A provision limiting the time within which any action may be commenced to less than five years after the cause of action accrues;
(c)
A provision by which the policy purports to be issued or to take effect more than one year before the original application for the insurance was made, if thereby the assured would rate at an age not more than one year younger than his age at date when application was made, according to his age at nearest birthday.
(2)
A life insurance company doing business in Colorado may not refuse to insure, refuse to continue to insure, limit the amount or extent or kind of coverage available to an individual, or charge an individual a different rate for the same coverage solely for reasons associated with an applicant's or insured's past or future lawful foreign travel. Nothing in this subsection (2) shall prohibit a life insurer from excluding or limiting coverage of specific lawful travel, or charging a differential rate for such coverage, when bona fide differences in risk or exposure have been substantiated by the use of relevant data from at least one independent reliable source, including statistical or other mathematical analysis of available data that establishes a material variation in actual or reasonably anticipated experience that correlates to the risk of specific lawful travel. Travel advisories issued by the United States department of state shall not qualify as the sole source of data for purposes of this subsection (2). Each insurer shall maintain the data and documents that support any such differences and shall make the data and documents available upon request by the commissioner.
L. 13: p. 351, § 44. C.L. § 2517. CSA: C. 87, § 58. CRS 53: § 72-3-5. C.R.S. 1963: § 72-3-5. L. 2006: (2) added, p. 710, § 1, effective July 1.
This section is set out more than once due to postponed, multiple, or conflicting amendments.
For the effect of a declaration under the "Colorado Medical Treatment Decision Act" on life insurance contracts, see § 15-18-111 .
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Article 7 - LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Part 1 - GENERAL (§§ 10-7-101 — 10-7-116) › Section 10-7-104 - Exceptions

The provisions of sections
10-7-102
and
10-7-103
shall not apply to annuities, industrial policies, or corporations or associations operating on the assessment or fraternal plan; except that the commissioner may review variable annuities to ensure that such products are offered, marketed, or sold to a market suitable for such product.
L. 13: p. 352, § 45. C.L. § 2518. CSA: C. 87, § 59. CRS 53: § 72-3-6. C.R.S. 1963: § 72-3-6. L. 2004: Entire section amended, p. 520, § 9, effective July 1.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Article 7 - LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Part 1 - GENERAL (§§ 10-7-101 — 10-7-116) › Section 10-7-105 - Violation

The certificate of authority of any foreign or domestic life insurance company violating any of the provisions of sections
10-7-102
and
10-7-103
shall be suspended by the commissioner and shall not be renewed until such company fully and completely conforms to the same. Such action by the commissioner is subject to review by any court of competent jurisdiction.
L. 13: p. 352, § 46. C.L. § 2519. CSA: C. 87, § 60. CRS 53: § 72-3-7. C.R.S. 1963: § 72-3-7.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Article 7 - LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Part 1 - GENERAL (§§ 10-7-101 — 10-7-116) › Section 10-7-105.5 - Lapse of life insurance policy - notice - affidavit of mailing or electronic transmission - legislative declaration

(1)
The general assembly finds, determines, and declares that it is beneficial to citizens of this state for life insurers, prior to the lapse of individual life insurance policies for nonpayment of premium, to provide written notice in a uniform manner to policy owners.
(2)
A notice of lapse of an individual life insurance policy for nonpayment of premium is effective only if:
(a)
The information is mailed along with the reason for the lapse by first-class United States mail to the last-known address of the policy owner at least twenty-five days before the effective date of lapse; or
(b)
The information is transmitted along with the reason for the lapse by electronic mail, if the policy owner consents to receive information related to an individual life insurance policy in electronic form, to the last-known electronic mail address of the policy owner on file with the insurer at least twenty-five days before the effective date of lapse of the individual life insurance policy.
(3)
The affidavit, executed under penalty of perjury, of any officer, clerk, or agent of the insurer or of anyone authorized to mail or electronically transmit notices required by subsection (2) of this section, constitutes proof of notice under this section.
(4)
This section does not apply to individual life insurance policies upon which premiums are paid monthly or at more frequent intervals.
(5)
The commissioner may adopt rules necessary for the administration of this section.
Added by 2014 Ch. 80, § 1, eff. 1/1/2015.
L. 2014: Entire section added, (HB 14-1082), ch. 80, p. 320, § 1, effective 1/1/2015.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Article 7 - LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Part 1 - GENERAL (§§ 10-7-101 — 10-7-116) › Section 10-7-106 - Exclusive right of insured in proceeds

Whenever, under the terms of any annuity or policy of life insurance, or under any written agreement supplemental thereto, issued by any insurance company, domestic or foreign, lawfully doing business in this state, the proceeds are retained by such company at maturity or otherwise, no person, other than the insured, entitled to any part of such proceeds or any installment of interest due or to become due thereon shall be permitted to commute, anticipate, encumber, alienate, or assign the same, or any part thereof, if such permission is expressly withheld by the terms of such policy or supplemental agreement; and, if such policy or supplemental agreement so provides, no payments of interest or of principal shall be in any way subject to such person's debts, contracts, or engagements nor to any judicial processes to levy upon or attach the same for payment thereof.
L. 25: p. 310, § 1. CSA: C. 87, § 64. CRS 53: § 72-3-11. C.R.S. 1963: § 72-3-11.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Article 7 - LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Part 1 - GENERAL (§§ 10-7-101 — 10-7-116) › Section 10-7-107 - Nonforfeiture benefits - applicability

(1)
In the event of default in the payment of any premium due on any policy issued after March 28, 1945, except term or convertible term policies, if not less than three full years' premiums have been paid thereon, there shall be secured to the insured, without action on his part, as specified in the policy, either paid-up insurance or extended insurance. The net value applied to such paid-up insurance or extended insurance shall be at least equal to the amount which would constitute the then reserve on the policy, including dividend additions, if any, calculated, with the privilege of one year preliminary term, upon the mortality table and rate of interest used in the policy as a basis for the calculation of such nonforfeiture benefits under the policy, less two and one-half percent of the amount insured by the policy and dividend additions, if any, or one-fifth of such reserve, and less any outstanding indebtedness to the company on the policy at time of default; but the mortality table and rate of interest used as a basis for the calculation of such nonforfeiture benefits shall be designated in the policy and shall be a mortality table and an interest rate acceptable for the valuation of such policy pursuant to section
10-7-101(2)
.
(2)
If the mortality table so designated in any such policy is other than the American experience table of mortality, a rate of mortality not more than one hundred thirty percent of the rate of mortality according to the table designated may be assumed in calculating any extended insurance, with accompanying pure endowment, if any, offered as a nonforfeiture benefit.
(3)
There shall be secured to the insured the right to surrender the policy to the company at its home office within one month after date of default for the cash value otherwise available for paid-up insurance or extended insurance, but the right to cash dividends or to cash surrender value, provided by this section and section
10-3-205
, may be specifically waived in the policy.
(4)
Nothing in this section shall be construed to prohibit the company from including in its policies a provision for automatic premium loans to prevent premium default.
(5)
No agreement between the company and the policyholder or applicant for insurance shall be held to waive any of the provisions of this section and section
10-3-205
, except as provided in this section.
(6)
Subsections (1) to (5) of this section shall not apply to any policy issued on or after the operative date of the "Standard Nonforfeiture and Valuation Act". As to any such policy the provisions of sections
10-7-302
to
10-7-308
shall be applicable.
L. 13: p. 353, § 50. C.L. § 2523. CSA: C. 87, § 65. L. 45: p. 414, § 2. CRS 53: § 72-3-12. L. 61: p. 465, § 11. C.R.S. 1963: § 72-3-12.
For the operative date of the "Standard Nonforfeiture and Valuation Act", see § 10-7-315.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Article 7 - LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Part 1 - GENERAL (§§ 10-7-101 — 10-7-116) › Section 10-7-108 - Regulating vouchers for disbursements

No domestic life insurance company shall make any disbursement unless the same is evidenced by a voucher correctly describing the consideration for the payment. If the expenditure is for both services and disbursements, the voucher shall set forth the services rendered and an itemized statement of the disbursements made. If the expenditure is in connection with any matter pending before any legislative or public body, or before any department or officer of any state or government, the voucher shall correctly describe, in addition, the nature of the matter and of the interest of such company therein. When such voucher cannot be obtained, the expenditure shall be evidenced by an affidavit describing the character and object of the expenditure and stating the reason for not obtaining such voucher.
L. 13: p. 354, § 51. C.L. § 2524. CSA: C. 87, § 66. CRS 53: § 72-3-13. C.R.S. 1963: § 72-3-13. L. 71: p. 717, § 1.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Article 7 - LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Part 1 - GENERAL (§§ 10-7-101 — 10-7-116) › Section 10-7-109 - Suicide no defense for nonpayment

The suicide of a policyholder after the first policy year of any life insurance policy issued by any life insurance company doing business in this state shall not be a defense against the payment of a life insurance policy, whether said suicide was voluntary or involuntary, and whether said policyholder was sane or insane. Nothing in this section is intended or shall be construed to apply to any accident insurance policy insuring against accidental death or death by accidental means or to those parts or provisions of any life insurance policy insuring specifically against accidental death or death by accidental means.
L. 13: p. 358, § 59. C.L. § 2532. L. 35: p. 573, § 1. CSA: C. 87, § 76. CRS 53: § 72-3-23. C.R.S. 1963: § 72-3-23.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Article 7 - LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Part 1 - GENERAL (§§ 10-7-101 — 10-7-116) › Section 10-7-110 - [Repealed]

L. 65: p. 756, § 1. C.R.S. 1963: § 72-1-55. L. 77: Entire section repealed, p. 519, § 1, effective March 26.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Article 7 - LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Part 1 - GENERAL (§§ 10-7-101 — 10-7-116) › Section 10-7-111 - [Repealed]

L. 65: p. 757, § 2. C.R.S. 1963: § 72-1-56. L. 77: Entire section repealed, p. 519, § 1, effective March 26.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Article 7 - LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Part 1 - GENERAL (§§ 10-7-101 — 10-7-116) › Section 10-7-113 - Acceleration of benefits

(1)
Any policy of life or endowment insurance or annuity contract or contract supplemental thereto may contain benefits providing for the acceleration of life or endowment or annuity benefits in advance of the time they would otherwise be payable for an insured:
(a)
Who is diagnosed with a terminal case of AIDS, as defined in section
10-3-1104.5(2)(a)
, or with any other terminal illness, for health-care expenses or for long-term care which is certified or ordered by a physician; or
(b)
Upon the occurrence of a qualifying event, as defined by the policy or contract.
(2)
For the purposes of this section, "long-term care" shall include but need not be limited to hospice care, adult day care, professional nursing care, medical care expenses, custodial nursing care, and nonnursing custodial care provided in a nursing home or at a residence of the insured.
(3)
The commissioner may request filing, for information purposes, the premium rates or discount rates applied to an acceleration of life insurance or endowment or annuity benefits in advance of the time they would otherwise be payable for an insured.
L. 89: Entire section added, p. 449, § 5, effective April 15. L. 90: Entire section amended, p. 621, § 1, effective March 22.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Article 7 - LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Part 1 - GENERAL (§§ 10-7-101 — 10-7-116) › Section 10-7-115 - Insurable interest - 170 (c)

Notwithstanding any other provision of law, any organization that meets the requirements of section 170 (c) of the federal "Internal Revenue Code of 1986", as amended, may own or purchase life insurance on an insured who gives written consent to the ownership or purchase of that insurance. The provisions of this section do not limit or abridge any insurable interest or right to insure now existing at common law or by statute, shall be construed liberally to sustain the existence of an insurable interest, and shall stand as a declaration of existing law applicable to all life insurance policies whenever issued, in existence on or after March 20, 1992.
L. 92: Entire section added, p. 1760, § 1, effective March 20.
This section was originally numbered as §
10-7-114
by House Bill 92-1031 but was renumbered on revision for ease of location.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Article 7 - LIFE INSURANCE (§§ 10-7-101 — 10-7-803) › Part 1 - GENERAL (§§ 10-7-101 — 10-7-116) › Section 10-7-116 - Military sales - rules

The commissioner shall promulgate rules, consistent with federal law, to define dishonest, unfair, and deceptive marketing and sales practices to military personnel and their families. The rules shall not affect federal insurance programs under
38 U.S.C. sec. 1965
et seq.
L. 2007: Entire section added, p. 1990, § 1, effective August 3.