reglab/statecodes huggingface dataset:
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 6 - EXCHANGE OF INSURANCE SECURITIES ACT (§§ 10-3-601 — 10-3-610) › Section 10-3-609 - Examination

After any acquiring corporation becomes the owner of all the outstanding shares of a domestic company pursuant to a plan of exchange consummated under the provisions of this part 6, the commissioner may, in connection with any examination of the domestic company, examine all records and documents of the acquiring corporation pertaining to the relationships and transactions of the domestic company with the acquiring corporation or its subsidiaries or affiliates. If the acquiring corporation is organized under the laws of any state other than Colorado, the commissioner may, as a condition of approving the plan of exchange, require such acquiring corporation to file a written consent to examination of its records and documents as provided in this section.
L. 69: p. 534, § 9. C.R.S. 1963: § 72-27-9.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 6 - EXCHANGE OF INSURANCE SECURITIES ACT (§§ 10-3-601 — 10-3-610) › Section 10-3-610 - Application of this part 6

Nothing contained in this part 6 shall be construed to prohibit the consummation of a plan of exchange of the kind described in section
10-3-602
, without compliance with the provisions of this part 6, and, if any such plan of exchange is consummated other than in compliance with this part 6, none of the provisions of sections
10-3-604
to
10-3-606
shall be applicable to such plan of exchange.
L. 69: p. 534, § 10. C.R.S. 1963: § 72-27-10.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 7 - CREDIT FOR REINSURANCE MODEL ACT (§§ 10-3-701 — 10-3-706) › Section 10-3-701 - Purpose

The purpose of this part 7 is to protect the interest of insureds, claimants, ceding insurers, assuming insurers, and the public generally. The general assembly hereby declares its intent is to ensure adequate regulation of insurers and reinsurers and adequate protection for those to whom they owe obligations. In furtherance of that state interest, the general assembly hereby provides a mandate that upon the insolvency of a non-United States insurer or reinsurer that provides security to fund its United States obligations in accordance with this part 7, the assets representing the security must be maintained in the United States, claims must be filed with and valued by the state insurance commissioner with regulatory oversight, and the assets must be distributed in accordance with the insurance laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic United States insurance companies. The general assembly declares that the matters contained in this part 7 are fundamental to the business of insurance in accordance with
15 U.S.C. secs. 1011
and
1012
.
Part 7 repealed and reenacted by 2014 Ch. 295,§ 1, eff. 1/1/2015.
For conditions necessary for reinsurance, see § 10-3-118.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 7 - CREDIT FOR REINSURANCE MODEL ACT (§§ 10-3-701 — 10-3-706) › Section 10-3-703 - Asset or reduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of section 10-3-702

(1)
An asset or a reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of section
10-3-702
shall be allowed in an amount not exceeding the liabilities carried by the ceding insurer. The reduction must be in the amount of funds held by or on behalf of the ceding insurer, including funds held in trust for the ceding insurer, under a reinsurance contract with the assuming insurer as security for the payment of obligations under the reinsurance contract if the security is held in the United States subject to withdrawal solely by, and under the exclusive control of, the ceding insurer or, in the case of a trust, held in a qualified United States financial institution, as defined in section
10-3-704(2)
. This security may be in the form of:
(a)
Cash;
(b)
Securities listed by the securities valuation office of the national association of insurance commissioners, including those deemed exempt from filing as defined by the purposes and procedures manual of the securities valuation office, and qualifying as admitted assets;
(c)
(I)
Clean, irrevocable, unconditional letters of credit, issued or confirmed by a qualified United States financial institution, as defined in section
10-3-704(1)
, effective no later than December 31 of the year for which the filing is being made, and in the possession of, or in trust for, the ceding insurer on or before the filing date of its annual statement;
(II)
Letters of credit meeting applicable standards of issuer acceptability as of the dates of their issuance or confirmation, notwithstanding the issuing or confirming institution's subsequent failure to meet applicable standards of issuer acceptability, continue to be acceptable as security until their expiration, extension, renewal, modification, or amendment, whichever first occurs; or
(d)
Any other form of security acceptable to the commissioner.
Part 7 repealed and reenacted by 2014 Ch. 295,§ 1, eff. 1/1/2015.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 7 - CREDIT FOR REINSURANCE MODEL ACT (§§ 10-3-701 — 10-3-706) › Section 10-3-704 - Qualified United States financial institutions

(1)
For purposes of section
10-3-703(1)(c)
, a "qualified United States financial institution" means an institution that:
(a)
Is 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 of the United States;
(b)
Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks and trust companies; and
(c)
Has 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.
(2)
A "qualified United States financial institution" means, for purposes of those provisions of this part 7 specifying those institutions that are eligible to act as a fiduciary of a trust, an institution that:
(a)
Is organized, or, in the case of a United States branch or agency office of a foreign banking organization, licensed, under the laws of the United States or any state of the United States and has been granted authority to operate with fiduciary powers; and
(b)
Is regulated, supervised, and examined by federal or state authorities having regulatory authority over banks and trust companies.
Part 7 repealed and reenacted by 2014 Ch. 295,§ 1, eff. 1/1/2015.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 7 - CREDIT FOR REINSURANCE MODEL ACT (§§ 10-3-701 — 10-3-706) › Section 10-3-705 - [Effective Until 1/1/2025] Rules

The commissioner may adopt rules implementing this part 7.
Part 7 repealed and reenacted by 2014 Ch. 295, § 1, eff. 1/1/2015.
This section is set out more than once due to postponed, multiple, or conflicting amendments.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 7 - CREDIT FOR REINSURANCE MODEL ACT (§§ 10-3-701 — 10-3-706) › Section 10-3-705 - [Effective 1/1/2025] Rules

(1)
The commissioner may adopt rules implementing this part 7.
(2)
(a)
The commissioner may adopt rules applicable to reinsurance arrangements described in this subsection (2)(a). Rules adopted pursuant to this subsection (2) must apply only to reinsurance relating to:
(I)
Life insurance policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits;
(II)
Universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period;
(III)
Variable annuities with guaranteed death or living benefits;
(IV)
Long-term care insurance policies; or
(V)
Other life and health insurance and annuity products as to which the NAIC adopts model regulatory requirements with respect to credit for reinsurance.
(b)
A rule adopted pursuant to subsection (2)(a)(I) or (2)(a)(II) of this section must apply to any treaty containing:
(I)
Policies issued on or after January 1, 2015; or
(II)
Policies issued prior to January 1, 2015, if risk pertaining to pre-2015 policies is ceded in connection with the treaty, in whole or in part, on or after January 1, 2015.
(c)
A rule adopted pursuant this subsection (2) may require the ceding insurer, in calculating the amounts or forms of security required to be held under rules promulgated under this subsection (2), to use the valuation manual adopted by the NAIC under the NAIC standard valuation law, including all amendments adopted by the NAIC and in effect on the date on which the calculation is made, to the extent applicable.
(d)
A rule adopted pursuant to this subsection (2) does not apply to cessions to an assuming insurer that:
(I)
(A)
Meets the conditions set forth in section 10-3-702 (6.5);
(B)
Is certified in this state; or
(C)
Maintains at least two hundred fifty million dollars in capital and surplus when calculated in accordance with the most recent NAIC accounting practices and procedures manual, as amended by the NAIC, excluding the impact of any permitted or prescribed practices; and
(II)
Is licensed:
(A)
In at least twenty-six states; or
(B)
In at least ten states and licensed or accredited in a total of at least thirty-five states.
(e)
The authority to adopt rules pursuant to this subsection (2) does not limit the commissioner's general authority to adopt rules pursuant to subsection (1) of this section.
(f)
As used in this subsection (2), "NAIC" means the National Association of Insurance Commissioners.
Amended by 2024 Ch. 252,§ 5, eff. 1/1/2025.
Part 7 repealed and reenacted by 2014 Ch. 295, § 1, eff. 1/1/2015.
2024 Ch. 252, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
This section is set out more than once due to postponed, multiple, or conflicting amendments.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 7 - CREDIT FOR REINSURANCE MODEL ACT (§§ 10-3-701 — 10-3-706) › Section 10-3-706 - Reinsurance agreements affected

This part 7 applies to all cessions after January 1, 2015, under reinsurance agreements that have an inception, anniversary, or renewal date not less than six months after January 1, 2015.
Part 7 repealed and reenacted by 2014 Ch. 295,§ 1, eff. 1/1/2015.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 8 - INSURANCE HOLDING COMPANY SYSTEMS (§§ 10-3-801 — 10-3-816) › Section 10-3-807 - Supervisory colleges

(1)
With respect to any insurer registered under section
10-3-804
, and in accordance with subsection (3) of this section, the commissioner may participate in a supervisory college for any domestic insurer that is part of an insurance holding company system with international operations in order to determine compliance by the insurer with this section. The powers of the commissioner with respect to supervisory colleges include the following:
(a)
Initiating the establishment of a supervisory college;
(b)
Clarifying the membership and participation of other supervisors in the supervisory college;
(c)
Clarifying the functions of the supervisory college and the role of other regulators, including the establishment of a group-wide supervisor;
(d)
Coordinating the ongoing activities of the supervisory college, including planning meetings, supervisory activities, and processes for information sharing; and
(e)
Establishing a crisis management plan.
(2)
Each registered insurer subject to this section is liable for and shall pay the reasonable expenses of the commissioner's participation in a supervisory college in accordance with subsection (3) of this section, including reasonable travel expenses. For purposes of this section, a supervisory college may be convened as either a temporary or permanent forum for communication and cooperation between the regulators charged with the supervision of the insurer or its affiliates, and the commissioner may establish a regular assessment to the insurer for the payment of these expenses.
(3)
In order to assess the business strategy, financial position, legal and regulatory position, risk exposure, and risk management and governance processes, and as part of the examination of individual insurers in accordance with section
10-3-806
, the commissioner may participate in a supervisory college with other regulators charged with supervision of the insurer or its affiliates, including other state, federal, and international regulatory agencies. The commissioner may enter into agreements, in accordance with section
10-3-808(3)
, providing the basis for cooperation between the commissioner and the other regulatory agencies and the activities of the supervisory college. Nothing in this section delegates to the supervisory college the commissioner's authority to regulate or supervise the insurer or its affiliates within his or her jurisdiction.
Part 8 repealed and reenacted by 2014 Ch. 312,§ 2, eff. 7/1/2014.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 8 - INSURANCE HOLDING COMPANY SYSTEMS (§§ 10-3-801 — 10-3-816) › Section 10-3-809 - Rules

The commissioner may, upon notice and opportunity for all interested persons to be heard, issue such rules and orders as are necessary to carry out this part 8.
Part 8 repealed and reenacted by 2014 Ch. 312,§ 2, eff. 7/1/2014.
This section is similar to former § 10-3-808 as it existed prior to 2014.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 8 - INSURANCE HOLDING COMPANY SYSTEMS (§§ 10-3-801 — 10-3-816) › Section 10-3-811 - Criminal proceedings - civil penalties - definition

(1)
Whenever it appears to the commissioner that an insurer or a director, officer, employee, or agent thereof has committed a willful violation of this part 8, the commissioner may cause criminal proceedings to be instituted in the district court for the county in which the principal office of the insurer is located or, if such insurer has no such office in this state, in the district court for the city and county of Denver against such insurer or the insurer's responsible director, officer, employee, or agent. An insurer or individual that willfully violates this part 8 commits a class 6 felony and shall be punished as provided in section
18-1.3-401
, C.R.S.
(2)
(a)
An insurer or an insurer's director, officer, employee, or agent that fails, without just cause, to file any registration statement, amendment, or notice of shareholder distribution as required in this part 8 may be required, after notice and hearing, to pay a civil penalty of not more than five thousand dollars for each violation. Each violation is a separate offense. The commissioner shall issue an order setting forth the amount of the civil penalty, which amount must be based on the alleged violator's history of previous violations, the good faith of the alleged violator in attempting to achieve rapid compliance after notification of the violation, the gravity and willfulness of the violation, the potential deterrent effect of the civil penalty, and such other considerations as may be specified by the commissioner. The commissioner may compromise, mitigate, or remit any such civil penalty.
(b)
For purposes of this subsection (2), "civil penalty" means any monetary penalty levied against an insurer or an insurer's director, officer, employee, or agent because of a violation of this part 8. "Civil penalty" does not include any criminal penalty levied under subsection (1) of this section.
(c)
The commissioner shall transmit all civil penalties collected pursuant to this subsection (2) to the state treasurer, who shall credit them to the general fund.
Part 8 repealed and reenacted by 2014 Ch. 312,§ 2, eff. 7/1/2014.
This section is similar to former § 10-3-810 as it existed prior to 2014.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 8 - INSURANCE HOLDING COMPANY SYSTEMS (§§ 10-3-801 — 10-3-816) › Section 10-3-812 - Receivership

Whenever it appears to the commissioner that any person has committed a violation of this part 8 that so impairs the financial condition of a domestic insurer as to threaten insolvency or make the further transaction of business by it hazardous to its policyholders, creditors, shareholders, or the public, the commissioner may proceed as provided in part 4 or 5 of this article.
Part 8 repealed and reenacted by 2014 Ch. 312,§ 2, eff. 7/1/2014.
This section is similar to former § 10-3-811 as it existed prior to 2014.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 8 - INSURANCE HOLDING COMPANY SYSTEMS (§§ 10-3-801 — 10-3-816) › Section 10-3-813 - Revocation, suspension, or nonrenewal of insurer's license

Whenever it appears to the commissioner that a person has committed a violation of this part 8 that makes the continued operation of an insurer contrary to the interests of policyholders or the public, the commissioner may, after giving notice and an opportunity to be heard, suspend, revoke, or refuse to renew the insurer's license or authority to do business in this state for such period as the commissioner finds is required for the protection of policyholders or the public. The determination must be accompanied by specific findings of fact and conclusions of law.
Part 8 repealed and reenacted by 2014 Ch. 312,§ 2, eff. 7/1/2014.
This section is similar to former § 10-3-812 as it existed prior to 2014.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 8 - INSURANCE HOLDING COMPANY SYSTEMS (§§ 10-3-801 — 10-3-816) › Section 10-3-814 - Judicial review - mandamus

(1)
A person aggrieved by an act, determination, rule, order, or other action of the commissioner pursuant to this part 8 may appeal the action to the district court for the city and county of Denver. The court shall conduct its review without a jury and by trial de novo; except that, if all parties, including the commissioner, so stipulate, the review shall be confined to the record. Portions of the record may be introduced by stipulation into evidence in a trial de novo as to those parties so stipulating.
(2)
The filing of an appeal pursuant to this section stays the application of the act, rule, order, or other action of the commissioner to the appealing party unless the court, after giving the parties notice and an opportunity to be heard, determines that a stay would be detrimental to the interests of policyholders, shareholders, creditors, or the public.
(3)
A person aggrieved by a failure of the commissioner to act or make a determination required by this part 8 may petition the district court for the city and county of Denver for an action in the nature of a mandamus or a peremptory mandamus directing the commissioner to act or make such determination forthwith.
Part 8 repealed and reenacted by 2014 Ch. 312,§ 2, eff. 7/1/2014.
This section is similar to former § 10-3-813 as it existed prior to 2014.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 8 - INSURANCE HOLDING COMPANY SYSTEMS (§§ 10-3-801 — 10-3-816) › Section 10-3-815 - Recovery of distributions or payments

(1)
Subject to the limitations of this section, where a distribution or payment pursuant to paragraph (a) or (b) of this subsection (1) is made at any time during the one year preceding a petition for liquidation, conservation, or rehabilitation, as the case may be, if an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under the order may recover on behalf of the insurer:
(a)
From any parent corporation or holding company or person or affiliate who otherwise controlled the insurer, the amount of distributions other than distributions of shares of the same class of stock paid by the insurer on its capital stock; or
(b)
Any payment in the form of a bonus, termination settlement, or extraordinary lump sum salary adjustment made by the insurer or its subsidiary to a director, officer, or employee.
(2)
A distribution is not recoverable if the parent or affiliate shows that, when paid, the distribution was lawful and reasonable and that the insurer did not know and could not reasonably have known that the distribution might adversely affect the ability of the insurer to fulfill its contractual obligations.
(3)
A person who was a parent corporation or holding company or a person who otherwise controlled the insurer or affiliate at the time the distributions were paid is liable up to the amount of distributions or payments under subsection (1) of this section that the person received. A person who otherwise controlled the insurer at the time the distributions were declared is liable up to the amount of distributions that would have been received if they had been paid immediately. If two or more persons are liable with respect to the same distributions, they are jointly and severally liable.
(4)
The maximum amount recoverable under this section is the amount needed in excess of all other available assets of the impaired or insolvent insurer to pay the contractual obligations of the impaired or insolvent insurer and to reimburse the Colorado insurance guaranty association, as that term is defined in section
10-3-502(9)
.
(5)
To the extent that a person liable under subsection (3) of this section is insolvent or otherwise fails to pay claims due from it, its parent corporation, holding company, or a person who otherwise controlled it at the time the distribution was paid is jointly and severally liable for any resulting deficiency in the amount recovered from the parent corporation, holding company, or person who otherwise controlled it.
Part 8 repealed and reenacted by 2014 Ch. 312,§ 2, eff. 7/1/2014.
This section is similar to former § 10-3-814 as it existed prior to 2014.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 8 - INSURANCE HOLDING COMPANY SYSTEMS (§§ 10-3-801 — 10-3-816) › Section 10-3-816 - Conflict with other laws

All laws and parts of laws of this state inconsistent with this part 8 are hereby superseded with respect to matters covered by this part 8.
Part 8 repealed and reenacted by 2014 Ch. 312,§ 2, eff. 7/1/2014.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 9 - UNAUTHORIZED INSURANCE (§§ 10-3-901 — 10-3-910) › Section 10-3-901 - Short title

This part 9 shall be known and may be cited as the "Regulation of Unauthorized Insurance Act".
L. 67: p. 873, § 10. C.R.S. 1963: § 72-25-10.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 9 - UNAUTHORIZED INSURANCE (§§ 10-3-901 — 10-3-910) › Section 10-3-902 - Legislative declaration

The purpose of this part 9 is to subject certain persons and insurers to the jurisdiction of the commissioner, of proceedings before the commissioner, and of the courts of this state in suits. The general assembly declares that it is a subject of concern that many residents of this state hold policies of insurance issued by persons and insurers not authorized to do insurance business in this state, thus presenting to such residents the often insuperable obstacle of asserting their legal rights under such policies in forums foreign to them under laws and rules of practice with which they are not familiar and are deprived of the benefit of Colorado laws regulating insurance. The general assembly declares that it is also concerned with the protection of residents of this state against acts by persons and insurers not authorized to do an insurance business in this state by the maintenance of fair and honest insurance markets; by protecting the premium tax revenues of this state; by protecting authorized persons and insurers, which are subject to strict regulation, from unfair competition by unauthorized persons and insurers; and by protecting against the evasion of the insurance regulatory laws of this state. In furtherance of such state interest, the general assembly in this part 9 exercises its power to protect residents of this state and to define what constitutes transacting insurance business in this state.
L. 67: p. 868, § 1. C.R.S. 1963: § 72-25-1.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 9 - UNAUTHORIZED INSURANCE (§§ 10-3-901 — 10-3-910) › Section 10-3-904 - Commissioner may enjoin unauthorized company

Whenever the commissioner of insurance believes, from evidence satisfactory to him, that any foreign or alien company is violating the provisions of section
10-3-105
and this part 9, the commissioner may, through the attorney general of this state, cause a complaint to be filed in the district court in and for the city and county of Denver to enjoin and restrain such company from continuing such violation or engaging therein or doing any act in furtherance thereof. The court has jurisdiction of the proceeding and has the power to make and enter an order or judgment awarding such preliminary or final injunctive relief as in its judgment is proper.
L. 67: p. 869, § 3. C.R.S. 1963: § 72-25-3.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 9 - UNAUTHORIZED INSURANCE (§§ 10-3-901 — 10-3-910) › Section 10-3-904.5 - Emergency cease-and-desist orders - issuance - rules - definition

(1)
The commissioner may issue an emergency cease-and-desist order ex parte if:
(a)
The commissioner believes that:
(I)
An unauthorized person is engaging in the business of insurance in violation of section
10-3-105
or
10-3-903
or is in violation of a rule promulgated by the commissioner; or
(II)
A person is failing to remedy or has not remedied a deficiency or deficiencies in the submission required pursuant to section
10-16-107.4 (1)
within the thirty days after the commissioner levies an initial fine pursuant to section
10-16-107.4 (2)(b)(II)
; and
(b)
It appears to the commissioner that the alleged conduct is fraudulent, creates an immediate danger to the public safety, or is causing or can be reasonably expected to cause significant, imminent, and irreparable public injury.
(2)
For purposes of subsection (1) of this section, "unauthorized person" means any individual, corporation, association, partnership, or other natural or artificial person that directly or indirectly engages in the transaction of insurance business as described in section
10-3-903
, except as such business may be engaged in in accordance with specific authorization in this title.
(3)
Upon making a determination under subsection (1) of this section that an emergency cease-and-desist order should be issued, the commissioner shall serve on the person who is the subject of the order, by registered or certified mail, return receipt requested, at such person's last known address, an order that contains a statement of the charges and requires such person to immediately cease and desist from the acts, methods, or practices stated in the order.
(4)
The division of insurance shall promulgate reasonable rules necessary to carry out the provisions of this section and sections
10-3-904.6
and
10-3-904.7
. Such rules shall include, to the extent possible, provisions requiring uniformity with respect to the procedures of this state and other states, the United States, and the national association of insurance commissioners.
Amended by 2022 Ch. 444, § 2, eff. 6/8/2022.
L. 93: Entire section added, p. 334, § 1, effective July 1.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 9 - UNAUTHORIZED INSURANCE (§§ 10-3-901 — 10-3-910) › Section 10-3-904.7 - Failure to pay penalties or restitution

(1)
If a person fails to pay a penalty or make complete restitution as directed by the commissioner under section
10-3-904.6(5)(a) or (5)(b)
, the commissioner may:
(a)
Refer the matter to the attorney general for enforcement; or
(b)
Cancel or revoke any permit, license, certificate of authority, certificate, registration, or other authorization issued to such person.
L. 93: Entire section added, p. 334, § 1, effective July 1.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 9 - UNAUTHORIZED INSURANCE (§§ 10-3-901 — 10-3-910) › Section 10-3-906 - Validity of insurance contracts - liability under insurance contract

(1)
The failure of a company transacting insurance business in Colorado to obtain a certificate of authority shall not impair the validity of any act or contract of such company and shall not prevent such company from defending any action in any court of this state.
(2)
In event of failure of any such unauthorized insurer to pay any claim or loss within the provisions of such insurance contract, any person who assisted or in any manner aided directly or indirectly in the procurement of such insurance contract is also liable to the insured for the full amount of the claim or loss in the manner provided by the provisions of such insurance contract.
L. 67: p. 870, § 5. C.R.S. 1963: § 72-25-5.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 9 - UNAUTHORIZED INSURANCE (§§ 10-3-901 — 10-3-910) › Section 10-3-907 - Investigation and disclosure of insurance contracts

(1)
Whenever the commissioner has reason to believe that insurance has been effectuated by or for any person in this state with an unauthorized insurer, the commissioner shall in writing order such person to produce for examination all insurance contracts and other documents evidencing insurance with both authorized and unauthorized insurers and to disclose to the commissioner the amount of insurance, name and address of each insurer, gross amount of premium paid or to be paid, and the name and address of the person assisting or aiding in the solicitation, negotiation, or effectuation of such insurance.
(2)
Every person who, for thirty days after such written order pursuant to subsection (1) of this section, neglects to comply with the requirements of such order or who willfully makes a disclosure that is untrue, deceptive, or misleading shall forfeit fifty dollars, and an additional fifty dollars for each day of neglect after expiration of said thirty days.
L. 67: p. 871, § 6. C.R.S. 1963: § 72-25-6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 9 - UNAUTHORIZED INSURANCE (§§ 10-3-901 — 10-3-910) › Section 10-3-908 - Reporting of unauthorized insurance

(1)
Every person investigating or adjusting any loss or claim on a subject of insurance in this state shall immediately report to the commissioner every insurance policy or contract which has been entered into by any insurer not authorized to transact such insurance business in this state.
(2)
Every person acting in the capacity of insurance adviser, counselor, or analyst shall report to the commissioner every insurance policy or contract covering a subject of insurance in this state which has been entered into by an insurer not authorized to transact such insurance business in this state.
(3)
This section does not apply to transactions in this state involving a policy lawfully solicited, written, and delivered outside of this state covering only subjects of insurance not resident, located, or expressly to be performed in this state at the time of issuance, and which transactions are subsequent to the issuance of such policy.
L. 67: p. 871, § 7. C.R.S. 1963: § 72-25-7.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 9 - UNAUTHORIZED INSURANCE (§§ 10-3-901 — 10-3-910) › Section 10-3-909 - Unauthorized insurance premium tax

(1)
Except as to premiums that are subject to a federal premium, excise, or stamp tax equal to or in excess of three percent of net premiums, and except as to premiums on independently procured insurance on which tax has been paid pursuant to section
10-3-209
,
10-5-111
, or
10-5-111.5
, every insured under a contract procured from an unauthorized insurer shall pay to the division of insurance before March 1 next succeeding the calendar year in which the insurance was so effectuated, continued, or renewed a premium tax of three percent of net premiums charged for the insurance. Such insurance on subjects resident, located, or to be performed in this state procured through negotiations or an application, in whole or in part occurring or made within or from within or outside of this state, or for which premiums in whole or in part are remitted directly or indirectly from within or outside of this state, is deemed to be insurance procured, continued, or renewed in this state. The term "premium" includes all premiums, membership fees, assessments, dues, and any other consideration for insurance. If the tax prescribed by this section is not paid within the time stated, the tax is increased by a penalty of twenty-five percent and by the amount of an additional penalty computed at the rate of one percent per month or any part thereof from the date the payment was due to the date paid.
(2)
If a policy covers risks or exposures only partially in this state, the tax payable shall be computed on the portions of the premium which are properly allocable to the risks or exposures located in this state.
(3)
Proration of premium taxes due from an industrial insured under a contract procured from an unauthorized insurer having property in states other than Colorado shall be determined by rules and regulations promulgated by the commissioner using the following criteria where applicable:
(a)
Percentage of physical assets in Colorado;
(b)
Percentage of employee payroll in Colorado;
(c)
Percentage of sales in Colorado;
(d)
Percentage of taxable income reportable in Colorado.
Amended by 2023 Ch. 46, § 2, eff. 1/1/2024.
L. 67: p. 871, § 8. C.R.S. 1963: § 72-25-8. L. 2012: (1) amended, (HB 12-1215), ch. 104, p. 354, § 6, effective August 8.
2023 Ch. 46, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 9 - UNAUTHORIZED INSURANCE (§§ 10-3-901 — 10-3-910) › Section 10-3-910 - Application of this part 9

(1)
Other than section
10-3-909
, this part 9 shall not apply to any insurance company or underwriter issuing contracts of insurance to industrial insureds nor to any contract of insurance issued to any one or more industrial insureds.
(2)
For purposes of this section, an "industrial insured" is:
(a)
An insured who procures the insurance of any risk other than life and annuity contracts by use of the services of a full-time employee acting as an insurance manager or buyer or the services of a regularly and continuously retained qualified insurance consultant who does not receive a commission or compensation for placing the risk; and
(b)
An insured whose aggregate annual premiums for insurance on all risks total at least one hundred thousand dollars; and
(c)
An insured having at least one hundred full-time employees.
(3)
Repealed.
Amended by 2022 Ch. 145,§1, eff. 8/10/2022.
L. 67: p. 872, § 9. C.R.S. 1963: § 72-25-9. L. 95: (2) amended, p. 497, § 19, effective May 16. L. 98: (3)(a) amended, p. 1326, § 28, effective June 1.
2022 Ch. 145, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 10 - UNAUTHORIZED INSURERS PROCESS ACT (§§ 10-3-1001 — 10-3-1005) › Section 10-3-1001 - Short title

This part 10 shall be known and may be cited as the "Unauthorized Insurers Process Act".
L. 55: p. 478, § 6. CRS 53: § 72-19-5. C.R.S. 1963: § 72-18-5.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 10 - UNAUTHORIZED INSURERS PROCESS ACT (§§ 10-3-1001 — 10-3-1005) › Section 10-3-1002 - Legislative declaration

The purpose of this part 10 is to subject certain insurers to the jurisdiction of courts of this state in suits by or on behalf of insureds or beneficiaries under insurance contracts. The general assembly declares that it is a subject of concern that many residents of this state hold policies of insurance issued or delivered in this state by insurers while not authorized to do business in this state, thus presenting to such residents the often insuperable obstacle of resorting to distant forums for the purpose of asserting legal rights under such policies. In furtherance of such state interest, the general assembly provides in this part 10 a method of substituted service of process upon such insurers and declares that in so doing it exercises its power to protect its residents and to define, for the purpose of this part 10, what constitutes doing business in this state, and also exercises powers and privileges available to the state by virtue of Public Law 15, 79th Congress of the United States, Chapter 20, 1st Sess., S. 340, as amended, which declares that the business of insurance and every person engaged therein shall be subject to the laws of the several states.
L. 55: p. 475, § 1. CRS 53: § 72-19-1. C.R.S. 1963: § 72-18-1.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 10 - UNAUTHORIZED INSURERS PROCESS ACT (§§ 10-3-1001 — 10-3-1005) › Section 10-3-1005 - Attorney fees

In any action against an unauthorized foreign or alien insurer upon a contract of insurance issued or delivered in this state to a resident thereof or to a corporation authorized to do business therein, if the insurer has failed for thirty days after demand prior to the commencement of the action to make payment in accordance with the terms of the contract, and it appears to the court that such refusal was vexatious and without reasonable cause, the court may allow to the plaintiff a reasonable attorney fee and include such fee in any judgment that may be rendered in such action. Such fee shall not exceed twelve and one-half percent of the amount which the court or jury finds the plaintiff is entitled to recover against the insurer, but in no event shall such fee be less than twenty-five dollars. Failure of an insurer to defend any such action is deemed prima facie evidence that its failure to make payment was vexatious and without reasonable cause.
L. 55: p. 478, § 4. CRS 53: § 72-19-4. C.R.S. 1963: § 72-18-4.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 11 - UNFAIR COMPETITION - DECEPTIVE PRACTICES (§§ 10-3-1101 — 10-3-1119) › Section 10-3-1101 - Legislative declaration

(1)
The purpose of this part 11 is to regulate trade practices in the business of insurance by defining, or providing for the determination of, all such practices in this state that constitute unfair methods of competition or unfair or deceptive acts or practices, and by prohibiting the trade practices so defined or determined. No rules or regulations may be promulgated to adversely affect free and open competition in the sale of insurance.
(2)
It is in the best interests of the citizens of this state to have transparency in the insurance claims process to further the public policy of encouraging settlement and preventing unnecessary litigation. Claimants and injured parties should fully understand the total amount of insurance coverage available to them. In addition, because payment of uninsured and underinsured motorist benefits covers the difference between the amount of the limits of any legal liability coverage and the amount of the damages sustained, it is important that the citizens of this state have accurate and reliable information about the amount of legal liability coverage available for a claim. Providing information to Colorado residents concerning the amount of liability coverage will:
(a)
Help Colorado residents evaluate whether their uninsured or underinsured motorist coverage will be triggered; and
(b)
Allow an insurer who provides uninsured or underinsured motorist coverage or policies more time to evaluate and place reserves on claims.
Amended by 2019 Ch. 250, § 1, eff. 1/1/2020.
L. 73: R&RE, p. 857, § 1. C.R.S. 1963: § 72-14-1. L. 2019: Entire section amended, (HB 19-1283), ch. 2426, p. 2426, § 1, effective 1/1/2020.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 11 - UNFAIR COMPETITION - DECEPTIVE PRACTICES (§§ 10-3-1101 — 10-3-1119) › Section 10-3-1102 - Definitions

As used in this part 11, unless the context otherwise requires:
(1)
"Commissioner" means the commissioner of insurance.
(2)
"Insurance policy" or "insurance contract" means any contract of insurance, indemnity, medical or hospital service, suretyship, or annuity issued, proposed for issuance, or intended for issuance by any person.
(2.5)
Repealed.
(3)
"Person" means any individual, corporation, association, partnership, reciprocal exchange, interinsurer, Lloyds insurer, nonadmitted insurer, fraternal benefit society, and other legal entities engaged in the insurance business, including agents, limited insurance representatives, agencies, brokers, surplus line brokers, and adjusters. The term also includes medical service plans and hospital service plans regulated under parts 1 and 3 of article
16
of this title 10, health maintenance organizations regulated under parts 1 and 4 of article
16
of this title 10, and multiple employer welfare arrangements operating pursuant to section
10-3-903.5(7)(d)
. The plans, arrangements, and organizations shall be deemed to be engaged in the business of insurance for purposes of this part 11 only.
Amended by 2021 Ch. 467,§ 2, eff. 9/7/2021.
L. 73: R&RE, p. 857, § 1. C.R.S. 1963: § 72-14-2. L. 78: (2.5) added, p. 293, § 1, effective July 1. L. 81: (2.5) repealed, p. 577, § 5, effective June 4. L. 84: (3) amended, p. 331, § 1, effective July 1. L. 87: (3) amended, p. 425, § 1, effective May 1. L. 92: (3) amended, p. 1723, § 4, effective July 1. L. 95: (3) amended, p. 491, §5, effective May 16.
Section 4 of chapter 467 (SB 21-063), Session Laws of Colorado 2021, provides that the act changing this section applies to conduct occurring on or after September 7, 2021.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 11 - UNFAIR COMPETITION - DECEPTIVE PRACTICES (§§ 10-3-1101 — 10-3-1119) › Section 10-3-1103 - Unfair methods of competition - unfair or deceptive acts or practices - prohibited

No person shall engage in this state in any trade practice which is defined in this part 11 as, or determined pursuant to section
10-3-1107
to be, an unfair method of competition or an unfair or deceptive act or practice in the business of insurance.
L. 73: R&RE, p. 858, § 1. C.R.S. 1963: § 72-14-3.