reglab/statecodes huggingface dataset:
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 5 - STANDARD NONFORFEITURE LAW FOR INDIVIDUAL DEFERRED ANNUITIES (§§ 10-7-501 — 10-7-511) › Section 10-7-509 - Calculations of values - supplemental rules

(1)
Any paid-up annuity, cash surrender, or death benefits available at any time, other than on the contract anniversary under any contract with fixed scheduled considerations, shall be calculated with allowance for the lapse of time and the payment of any scheduled considerations beyond the beginning of the contract year in which cessation of payment of considerations under the contract occurs.
(2)
For any contract which provides, within the same contract by rider or supplemental contract provision, both annuity benefits and life insurance benefits that are in excess of the greater of cash surrender benefits or a return of the gross considerations with interest, the minimum nonforfeiture benefits shall be equal to the sum of the minimum nonforfeiture benefits for the annuity portion and the minimum nonforfeiture benefits, if any, for the life insurance portion computed as if each portion were a separate contract. Notwithstanding the provisions of sections
10-7-505
to
10-7-508
and subsection (1) of this section, additional benefits payable in the event of total and permanent disability, as reversionary annuity or deferred reversionary annuity benefits, or as other policy benefits additional to life insurance, endowment, and annuity benefits, and considerations for all such additional benefits, shall be disregarded in ascertaining the minimum nonforfeiture amounts and paid-up annuity, cash surrender, and death benefits that may be required by this part 5. The inclusion of such additional benefits shall not be required in any paid-up benefits, unless additional benefits separately would require minimum nonforfeiture amounts and paid-up annuity, cash surrender, and death benefits.
L. 77: Entire part added, p. 531, § 11, 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 5 - STANDARD NONFORFEITURE LAW FOR INDIVIDUAL DEFERRED ANNUITIES (§§ 10-7-501 — 10-7-511) › Section 10-7-510 - Effective date - applicability of part

On or after July 1, 2004, a company may elect to apply this part 5 to annuity contracts on a contract form-by-contract form basis. Otherwise, this part 5 shall apply to all annuity contracts created on or after July 1, 2005, and between July 1, 2004, and July 1, 2005, this part 5 as it existed on June 30, 2004, shall apply to all other annuity contracts.
L. 77: Entire part added, p. 531, § 11, effective July 1. L. 2004: Entire section amended, p. 820, § 3, 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 5 - STANDARD NONFORFEITURE LAW FOR INDIVIDUAL DEFERRED ANNUITIES (§§ 10-7-501 — 10-7-511) › Section 10-7-511 - Rule-making authority

The commissioner may adopt rules to implement this part 5.
L. 2004: Entire section added, p. 821, § 4, 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 6 - VIATICAL SETTLEMENTS (§§ 10-7-601 — 10-7-620) › Section 10-7-601 - Short title

This part 6 shall be known and may be cited as the "Viatical Settlements Act".
L. 2005: Entire part added, p. 1293, § 1, effective 1/1/2006.
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 6 - VIATICAL SETTLEMENTS (§§ 10-7-601 — 10-7-620) › Section 10-7-604 - Licensure - refusal to issue - suspension - revocation - refusal to renew

(1)
The commissioner shall refuse to issue, suspend, revoke, or refuse to renew the license of a viatical settlement provider if the commissioner finds after compliance with subsection (3) of this section that:
(a)
There was any material misrepresentation in the application for the license;
(b)
The licensee or any of its officers, partners, members, or key management personnel has been convicted of fraudulent or dishonest practices, is subject to a final administrative action, or is otherwise shown to be untrustworthy or incompetent;
(c)
The licensee demonstrates a pattern of unreasonable payments to viators;
(d)
The licensee or any of its officers, partners, members, or key management personnel has been found guilty of, or has pleaded guilty or nolo contendere to, any felony, or to a misdemeanor involving fraud or moral turpitude, regardless of whether a judgment or conviction has been entered by the court;
(e)
The licensee has entered into any viatical settlement contract that has not been approved pursuant to this part 6;
(f)
The licensee has failed to honor contractual obligations set out in a viatical settlement contract;
(g)
The licensee no longer meets the requirements for initial licensure;
(h)
The licensee has assigned, transferred, or pledged a viaticated policy to a person other than a viatical settlement provider licensed in this state; an accredited investor or qualified institutional buyer as defined, respectively, in regulation D, rule 501, or rule 144A of the federal "Securities Act of 1933", as amended; a financing entity; a special purpose entity; or a related provider trust; or
(i)
The applicant or licensee or any of its officers, partners, members, or key management personnel, or any life insurance producer acting on behalf of the applicant or licensee, has violated this part 6.
(2)
The commissioner may suspend, revoke, or refuse to renew the license of a life insurance producer if the commissioner finds that such life insurance producer has violated this part 6.
(3)
If the commissioner denies a license application or suspends, revokes, or refuses to renew the license of a viatical settlement provider, or suspends, revokes, or refuses to renew the license of a life insurance producer, the commissioner shall conduct a hearing in accordance with the "State Administrative Procedure Act", article
4
of title
24
, C.R.S., and may use a hearing officer pursuant to section
10-1-127
.
L. 2005: Entire part added, p. 1300, § 1, effective 1/1/2006.
For regulation D, rule 501, see 17 CFR 230.501 ; for rule 144A, see 17 CFR 230.144A .
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 6 - VIATICAL SETTLEMENTS (§§ 10-7-601 — 10-7-620) › Section 10-7-605 - Forms approval

A person may not use a viatical settlement contract or provide to a viator a disclosure statement form in this state unless such contract or form is first filed with and approved by the commissioner. Any settlement contract form or disclosure form filed with the commissioner shall be deemed approved if it has not been disapproved within sixty days after the filing. The commissioner shall disapprove a viatical settlement contract form or disclosure statement form if, in the commissioner's opinion, the contract or provisions contained in it are unreasonable, contrary to the interests of the public, or misleading or unfair to the viator.
L. 2005: Entire part added, p. 1301, § 1, effective 1/1/2006.
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 6 - VIATICAL SETTLEMENTS (§§ 10-7-601 — 10-7-620) › Section 10-7-606 - Annual reports

(1)
Each viatical settlement provider shall file with the commissioner by March 1 of each year an annual statement containing such information as the commissioner prescribes by rule. This information is limited to only those transactions in which the viator is a resident of this state and does not include individual transaction data regarding the business of viatical settlements or data that compromises the privacy of personal, financial, or health information of the viator or insured.
(2)
Except as otherwise allowed or required by law, a viatical settlement provider, life insurance producer, information bureau, rating agency or company, or other person with actual knowledge of a viator or insured's identity may not disclose that identity as a viator or insured or the viator's or insured's financial or medical information to another person unless the disclosure is:
(a)
(I)
Necessary to effect a viatical settlement contract between the viator and a viatical settlement provider; and
(II)
The viator or insured or both, as may be required, have provided prior written consent to the disclosure;
(b)
Provided in response to an investigation or examination by the commissioner or another governmental officer or agency or pursuant to this article;
(c)
A term of or condition to the transfer of a policy by one viatical settlement provider to another viatical settlement provider;
(d)
Necessary to permit a financing entity, related provider trust, or special purpose entity to finance the purchase of policies by a viatical settlement provider and the viator and insured have provided prior written consent to the disclosure;
(e)
Necessary to allow the viatical settlement provider or its authorized representative to make contacts for the purpose of determining health status; or
(f)
Required to purchase stop-loss coverage.
L. 2005: Entire part added, p. 1301, § 1, effective 1/1/2006.
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 6 - VIATICAL SETTLEMENTS (§§ 10-7-601 — 10-7-620) › Section 10-7-610 - Limited purchase in incontestability period

(1)
It is a violation of this part 6 for a person to enter into a viatical settlement contract within a two-year period commencing with the date of issuance of the policy unless the viator certifies to the viatical settlement provider that one or more of the following conditions has been met within the two-year period:
(a)
The policy was issued upon the viator's exercise of conversion rights arising out of a group or individual policy, if the total of the time covered under the conversion policy plus the time covered under the prior policy is at least twenty-four months. The time covered under a group policy shall be calculated without regard to a change in insurance carriers if the coverage has been continuous and under the same group sponsorship.
(b)
The viator submits independent evidence to the viatical settlement provider that one or more of the following conditions has been met within the two-year period:
(I)
The viator or insured is terminally or chronically ill; or
(II)
The viator or insured disposes of his or her ownership interests in a closely held corporation pursuant to the terms of a buyout or other similar agreement in effect at the time the insurance policy was initially issued.
(2)
Copies of the independent evidence described in paragraph (b) of subsection (1) of this section and documents required must be submitted to the insurer when the viatical settlement provider submits a request to the insurer for verification of coverage. The copies shall be accompanied by a letter of attestation from the viatical settlement provider that the copies are true and correct copies of the documents received by the viatical settlement provider.
(3)
If the viatical settlement provider submits to the insurer a copy of independent evidence provided for in paragraph (b) of subsection (1) of this section when the viatical settlement provider submits a request to the insurer to effect the transfer of the policy to the viatical settlement provider, the copy is deemed to conclusively establish that the viatical settlement contract satisfies the requirements of this section and the insurer shall respond timely to the request.
L. 2005: Entire part added, p. 1313, § 1, effective 1/1/2006.
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 6 - VIATICAL SETTLEMENTS (§§ 10-7-601 — 10-7-620) › Section 10-7-614 - Unfair trade practices

A violation of this part 6 shall constitute an unfair trade practice pursuant to part 11 of article
3
of this title and be subject to the penalties contained in such part 11.
L. 2005: Entire part added, p. 1322, § 1, effective 1/1/2006.
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 6 - VIATICAL SETTLEMENTS (§§ 10-7-601 — 10-7-620) › Section 10-7-615 - Rules

(1)
The commissioner may:
(a)
Promulgate rules implementing this part 6;
(b)
Establish standards for evaluating the reasonableness of payments under a viatical settlement contract for a person who is terminally or chronically ill. This authority includes, but is not limited to, regulation of discount rates used to determine the amount paid in exchange for assignment, transfer, sale, devise, or bequest of a benefit under a policy. If the insured is not terminally or chronically ill, a viatical settlement provider shall pay an amount greater than the cash surrender value or accelerated death benefit then available.
(c)
Establish appropriate licensing requirements, fees, and standards for continued licensure for a viatical settlement provider and a fee for life insurance producers;
(d)
Require a bond or other mechanism for financial accountability for a viatical settlement provider; and
(e)
Adopt rules governing the relationship and responsibilities of an insurer and a viatical settlement provider, a life insurance producer, and others in the business of viatical settlements during the period of consideration or effectuation of a viatical settlement contract.
L. 2005: Entire part added, p. 1322, § 1, effective 1/1/2006.
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 6 - VIATICAL SETTLEMENTS (§§ 10-7-601 — 10-7-620) › Section 10-7-616 - No preemption - Colorado Securities Act - authority of division of securities

Nothing in this part 6 preempts or otherwise limits the provisions of the "Colorado Securities Act", article
51
of title
11
, C.R.S., or any rules, orders, policy statements, notices, bulletins, or other interpretations issued by or through the commissioner of securities or the commissioner of securities' designee acting pursuant to the "Colorado Securities Act". Compliance with this part 6 does not constitute compliance with any applicable provision of the "Colorado Securities Act" or any rules, orders, policy statements, notices, bulletins, or other interpretations issued by or through the commissioner of securities or the commissioner of securities' designee acting pursuant to the "Colorado Securities Act".
L. 2005: Entire part added, p. 1323, § 1, effective 1/1/2006.
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 6 - VIATICAL SETTLEMENTS (§§ 10-7-601 — 10-7-620) › Section 10-7-617 - Application

A viatical settlement provider lawfully transacting business in this state may continue to do so pending approval or disapproval of the person's application for a license as long as the application is filed with the commissioner not later than thirty days after publication by the commissioner of an application form for licensure of viatical settlement providers. If the publication of the application form is prior to January 1, 2006, the filing of the application shall not be later than thirty days after January 1, 2006.
L. 2005: Entire part added, p. 1323, § 1, effective 1/1/2006.
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 6 - VIATICAL SETTLEMENTS (§§ 10-7-601 — 10-7-620) › Section 10-7-618 - Continuation of business

Notwithstanding any provision of this part 6 to the contrary, a person who has lawfully negotiated viatical settlement contracts between a viator and one or more viatical settlement providers for at least one year immediately prior to January 1, 2006, may continue to negotiate viatical settlements in this state for a period of one year from January 1, 2006, if such person registers with the commissioner on a form prescribed by the commissioner. Such registration form shall be published by the commissioner not later than thirty days after January 1, 2006, and shall require a person registering to evidence that he or she has lawfully negotiated viatical settlement contracts. The form shall also include an acknowledgment by such person that he or she will operate in accordance with and comply with this part 6.
L. 2005: Entire part added, p. 1323, § 1, effective 1/1/2006.
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 6 - VIATICAL SETTLEMENTS (§§ 10-7-601 — 10-7-620) › Section 10-7-619 - Viatical settlements cash fund - created

All direct and indirect expenditures of the commissioner and the division in administering this part 6 shall be paid from the viatical settlements cash fund, which fund is hereby created in the state treasury. All fees collected pursuant to this part 6 shall be transmitted to the state treasurer, who shall credit them to the viatical settlements cash fund. All moneys credited to the viatical settlements cash fund shall be used as provided in this section, shall not be deposited in or transferred to the general fund of this state or to any other fund, and shall be subject to annual appropriation by the general assembly for the purpose of defraying the expenses of the commissioner and the division in administering this part 6. All interest derived from the deposit and investment of moneys in the viatical settlements cash fund shall be credited to the viatical settlements cash fund.
L. 2005: Entire part added, p. 1323, § 1, effective 1/1/2006.
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 6 - VIATICAL SETTLEMENTS (§§ 10-7-601 — 10-7-620) › Section 10-7-620 - Severability

If any provision of this part 6 is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining provisions of this part 6, and to this end the provisions of this part 6 are expressly declared to be severable.
L. 2005: Entire part added, p. 1324, § 1, effective 1/1/2006.
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 7 - INSURABLE INTEREST ACT (§§ 10-7-701 — 10-7-710) › Section 10-7-701 - Short title

This part 7 shall be known and may be cited as the "Insurable Interest Act".
L. 2011: Entire part added, (SB 11-182), ch. 227, p. 972, §1, effective May 27.
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 7 - INSURABLE INTEREST ACT (§§ 10-7-701 — 10-7-710) › Section 10-7-702 - Definitions

As used in this part 7, unless the context otherwise requires:
(1)
"Business entity" means a legal entity, including a joint venture, partnership, corporation, limited liability company, or business trust.
(2)
"Person" means any natural person, business entity, association, or trust.
(3)
"Policy" means an individual or group policy, group certificate, contract, or arrangement of life insurance affecting the rights of a resident of this state or bearing a reasonable relation to this state, regardless of whether delivered or issued for delivery in this state.
(4)
"Settlor" means a person who executes a trust instrument, including a person for whom a fiduciary or agent is acting.
(5)
"Stranger originated life insurance" means an act, practice, or arrangement to initiate a life insurance policy for the benefit of a third-party investor who, at the time of policy origination, has no insurable interest in the insured. Stranger originated life insurance practices include cases in which life insurance is purchased with resources or guarantees from or through a person or entity who, at the time of inception, could not lawfully initiate the policy themselves and where, at the time of inception, there is an arrangement or agreement, whether verbal or written, to directly or indirectly transfer the ownership of the policy or the policy benefits to a third party. Trusts that are created to give the appearance of insurable interest and are used to initiate policies for investors violate insurable interest laws and the prohibition on wagering on life. "Stranger originated life insurance" does not include lawful viatical settlement contracts as permitted by part 6 of this article, provided that such contracts are not for the purpose of evading regulation under this article.
L. 2011: Entire part added, (SB 11-182), ch. 227, p. 972, §1, effective May 27.
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 7 - INSURABLE INTEREST ACT (§§ 10-7-701 — 10-7-710) › Section 10-7-703 - Insurance on the life of another

A person shall not procure or cause to be procured or effected a policy upon the life of another individual unless the benefits under the policy are payable to the insured, to the personal representative of the insured's estate, or to a person having, at the time the policy is issued, an insurable interest in the individual insured.
L. 2011: Entire part added, (SB 11-182), ch. 227, p. 973, §1, effective May 27.
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 7 - INSURABLE INTEREST ACT (§§ 10-7-701 — 10-7-710) › Section 10-7-705 - Insured's own life

An individual has an insurable interest in the individual's own life, and an individual of competent legal capacity who procures or effects a policy on the individual's own life may designate any person as the beneficiary and, unless the individual elects an irrevocable beneficiary designation, change the beneficiary at any time thereafter.
L. 2011: Entire part added, (SB 11-182), ch. 227, p. 975, §1, effective May 27.
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 7 - INSURABLE INTEREST ACT (§§ 10-7-701 — 10-7-710) › Section 10-7-706 - Reliance on statements

An insurer is entitled to rely upon all reasonable statements, declarations, and representations made by an applicant for life insurance relative to the existence of an insurable interest. No insurer incurs legal liability, except as set forth in the policy, by virtue of untrue statements, declarations, or representations relied upon in good faith by the insurer.
L. 2011: Entire part added, (SB 11-182), ch. 227, p. 975, §1, effective May 27.
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 7 - INSURABLE INTEREST ACT (§§ 10-7-701 — 10-7-710) › Section 10-7-707 - Consent of insured

(1)
A policy upon the life of an individual, other than a policy of noncontributory group life insurance, shall not be effected unless, at or before the time the policy is effectuated, the individual insured, having legal capacity to contract, applies for or consents in writing to the policy and its terms. Consent may be given by another person in the following cases:
(a)
A spouse may consent to insurance on the other spouse;
(b)
A parent or a person having legal custody of a minor may consent to the issuance of a policy on a dependent child;
(c)
A court-appointed guardian of a person may consent to the issuance of a policy on the person under guardianship;
(d)
A court-appointed conservator of a person's estate may consent to the issuance of a policy on the person whose estate is under conservatorship;
(e)
An attorney-in-fact may consent to the issuance of a policy on the person that appointed the attorney-in-fact for the limited purpose of replacing one or more policies with one or more new policies if, as the result of the replacement, the aggregate amount of life insurance on the person remains the same or decreases;
(f)
A trustee of a revocable trust may consent to the issuance of a policy on the life of a settlor of the trust; and
(g)
A court of general jurisdiction may give consent to the issuance of a policy upon a showing of facts that the court considers sufficient to justify the issuance of the policy.
L. 2011: Entire part added, (SB 11-182), ch. 227, p. 975, §1, effective May 27.
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 7 - INSURABLE INTEREST ACT (§§ 10-7-701 — 10-7-710) › Section 10-7-708 - Prohibited practices

(1)
It is unlawful for any person to procure, or cause to be procured or effected, a policy in violation of section
10-7-703
. Such conduct is an unfair or deceptive act or practice pursuant to section
10-3-1104
.
(2)
It is unlawful for any person to engage in stranger originated life insurance or otherwise wager on life. Such conduct is an unfair or deceptive practice pursuant to section
10-3-1104
.
L. 2011: Entire part added, (SB 11-182), ch. 227, p. 976, §1, effective May 27.
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 7 - INSURABLE INTEREST ACT (§§ 10-7-701 — 10-7-710) › Section 10-7-709 - Actions to recover death benefits

If the beneficiary, assignee, or other payee received the death benefits under a life insurance policy procured or effected in violation of this article, the personal representative of the insured's estate or other lawfully acting agent may maintain an action to recover the death benefits from the person receiving them.
L. 2011: Entire part added, (SB 11-182), ch. 227, p. 976, §1, effective May 27.
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 7 - INSURABLE INTEREST ACT (§§ 10-7-701 — 10-7-710) › Section 10-7-710 - Legitimate insurance transactions

(1)
Except where a life insurance policy is procured or effected in violation of section
10-7-708
, nothing in this article prevents:
(a)
An owner of a policy, whether or not the owner of the policy is also the subject of the insurance, from entering into a viatical settlement contract;
(b)
Any person from soliciting a person to enter into a viatical settlement contract; or
(c)
An owner or beneficiary from enforcing the payment of all benefits and proceeds of the policy obtained under a viatical settlement contract.
L. 2011: Entire part added, (SB 11-182), ch. 227, p. 976, §1, effective May 27.
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 8 - UNCLAIMED LIFE INSURANCE BENEFITS ACT (§§ 10-7-801 — 10-7-803) › Section 10-7-801 - Short title

The short title of this part 8 is the "Unclaimed Life Insurance Benefits Act".
Added by 2019 Ch. 110, § 4, eff. 7/1/2020.
L. 2019: Entire part added, (SB 19-088), ch. 463, p. 463, § 4, effective 7/1/2020.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › COVERCOLORADO (§§ 10-8-101 — 10-8-601) › Article 8 - COVERCOLORADO (§§ 10-8-101 — 10-8-601) › Part 1 - [Repealed] GENERAL (§ 10-8-101) › Section 10-8-101 - to 10-8-126 - [Repealed]

L. 92: Entire part repealed, p. 1728, § 22, effective July 1.
This part 1 was numbered as article 10 of chapter 72, C.R.S. 1963. The provisions of this part 1 were relocated to parts 1 and 2 of article
16
of this title.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › COVERCOLORADO (§§ 10-8-101 — 10-8-601) › Article 8 - COVERCOLORADO (§§ 10-8-101 — 10-8-601) › Part 2 - [Repealed] STATE EMPLOYEES' AND Officials' GROUP INSURANCE (§ 10-8-201) › Section 10-8-201 - to 10-8-219 - [Repealed]

L. 94: Entire part repealed, p. 1137, § 4, effective May 19.
This part 2 was numbered as article 22 of chapter 72, C.R.S. 1963. The provisions of this part 2 were relocated to part 6 of article
50
of title
24
. For the location of specific provisions, see the editor's notes following each section in said part 6.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › COVERCOLORADO (§§ 10-8-101 — 10-8-601) › Article 8 - COVERCOLORADO (§§ 10-8-101 — 10-8-601) › Part 3 - [Repealed] REQUIRED HEALTH INSURANCE BENEFITS FOR ALCOHOLISM TREATMENT (§ 10-8-301) › Section 10-8-301 - [Repealed]

L. 92: Entire part repealed, p. 1728, § 22, effective July 1.
This part 3 was added in 1975 and was not amended prior to its repeal in 1992. The provisions of this part 3 were relocated to part 1 of article
16
of this title.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › COVERCOLORADO (§§ 10-8-101 — 10-8-601) › Article 8 - COVERCOLORADO (§§ 10-8-101 — 10-8-601) › Part 4 - [Repealed] REQUIRED HEALTH INSURANCE BENEFITS FOR HOME HEALTH SERVICES AND HOSPICE CARE (§ 10-8-401) › Section 10-8-401 - [Repealed]

L. 92: Entire part repealed, p. 1728, § 22, effective July 1.
This part 4 was added in 1984. The provisions of this part 4 were relocated to part 1 of article
16
of this title.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › COVERCOLORADO (§§ 10-8-101 — 10-8-601) › Article 8 - COVERCOLORADO (§§ 10-8-101 — 10-8-601) › Part 5 - [Repealed] COVERCOLORADO (§ 10-8-501) › Section 10-8-501 - to 10-8-537 - [Repealed]

(1) This part 5 was added in 1990.
(2) Section 10-8-537 provided for the repeal of this part 5, effective March 31, 2015. (See L. 2013 p. 1970.)
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › COVERCOLORADO (§§ 10-8-101 — 10-8-601) › Article 8 - COVERCOLORADO (§§ 10-8-101 — 10-8-601) › Part 6 - [Repealed] SMALL EMPLOYER HEALTH INSURANCE AVAILABILITY PROGRAM ACT (§ 10-8-601) › Section 10-8-601 - to 10-8-607 - [Repealed]

L. 2004: Entire part repealed, p. 1011, § 23, effective August 4.
This part 6 was added in 1992.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › FRANCHISE INSURANCE (§ 10-9-101) › Article 9 - [Repealed] FRANCHISE INSURANCE (§ 10-9-101) › Section 10-9-101 - to 10-9-104 - [Repealed]

L. 95: Entire article repealed, p. 197, § 9, effective April 13.
This article was numbered as article 21 of chapter 72, C.R.S. 1963.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Article 10 - CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Section 10-10-101 - Short title

This article shall be known and may be cited as the "Credit Insurance Act".
L. 69: p. 536, § 2. C.R.S. 1963: § 72-28-2. L. 92: Entire section amended, p. 1569, § 81, effective May 20.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Article 10 - CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Section 10-10-102 - Legislative declaration

The purpose of this article is to promote the public welfare by regulating credit insurance. Nothing in this article is intended to prohibit or discourage reasonable competition. The provisions of this article shall be liberally construed.
L. 69: p. 536, § 1. C.R.S. 1963: § 72-28-1. L. 92: Entire section amended, p. 1569, § 82, effective May 20.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Article 10 - CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Section 10-10-103 - Definitions

As used in this article, unless the context otherwise requires:
(1)
"Commissioner" means the commissioner of insurance of Colorado.
(2)
"Credit insurance" means insurance on a debtor to provide indemnity for payments or loan balance, or any combination thereof, becoming due on a specific loan or other credit transaction upon the occurrence of a contingency for which insurance is obtained.
(3)
(Deleted by amendment, L. 92, p. 1569, § 83, effective May 20, 1992.)
(4)
"Creditor" means the lender of money or vendor or lessor of goods, services, property, rights, or privileges for which payment is arranged through a credit transaction, or any successor to the right, title, or interest of any such lender, vendor, or lessor, and an affiliate, associate, or subsidiary of any of them, or any director, officer, or employee of any of them, or any other person in any way associated with any of them.
(5)
"Debtor" means a borrower of money or a purchaser or lessee of goods, services, property, rights, or privileges for which payment is arranged through a credit transaction.
(6)
"Indebtedness" means the total amount payable by a debtor to a creditor in connection with a loan or other credit transaction.
(7)
"Truncated coverage" means credit insurance that provides a term of insurance coverage for a period that is shorter than the full term of the indebtedness remaining at the time the insurance coverage is elected. The term does not include credit insurance coverage that terminates on attainment of a specific age.
L. 69: p. 536, § 4. C.R.S. 1963: § 72-28-4. L. 92: (2) and (3) amended, p. 1569, § 83, effective May 20. L. 2000: (7) added, p. 151, § 1, effective August 2.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Article 10 - CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Section 10-10-104 - Application of article

All insurance in connection with loans or other credit transactions shall be subject to the provisions of this article. Insurance shall not be subject to the provisions of this article where the issuance of such insurance is an isolated transaction on the part of the insurer not related to an agreement or a plan for insuring debtors of the creditor.
L. 69: p. 536, § 3. C.R.S. 1963: § 72-28-3. L. 85: Entire section amended, p. 302, § 14, effective May 10. L. 92: Entire section amended, p. 1569, § 84, effective May 20. L. 2000: Entire section amended, p. 168, § 1, effective August 2.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Article 10 - CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Section 10-10-105 - [Repealed]

L. 69: p. 537, § 5. C.R.S. 1963: § 72-28-5. L. 86: (2) added, p. 593, § 1, effective March 26. L. 92: Entire section repealed, p. 1569, § 85, effective May 20.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Article 10 - CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Section 10-10-106 - Amount of credit insurance

(1)
The initial amount of credit insurance shall not exceed the total amount repayable under the contract of indebtedness and, where an indebtedness is repayable in substantially equal installments, the amount of insurance shall at no time exceed the scheduled or actual amount of unpaid indebtedness, whichever is greater.
(2)
Notwithstanding the provisions of subsection (1) of this section, insurance on agricultural credit transaction commitments, not exceeding one year in duration, may be written up to the amount of the loan commitment on a nondecreasing or level term plan.
(3)
Notwithstanding any other provision of this section, insurance on educational credit transaction commitments may be written for the amount of the portion of such commitment that has not been advanced by the creditor.
(4)
The total amount of periodic indemnity payable by credit accident and health insurance in the event of disability, as defined in the policy, shall not exceed the aggregate of the periodic scheduled unpaid installments of the indebtedness; and the amount of each periodic indemnity payment shall not exceed the original indebtedness divided by the number of periodic installments.
L. 69: p. 537, § 6. C.R.S. 1963: § 72-28-6. L. 92: (1) amended, p. 1570, § 86, effective May 20.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Article 10 - CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Section 10-10-107 - Term of credit insurance

The term of any credit insurance shall, subject to acceptance by the insurer, commence on the date when the debtor becomes obligated to the creditor; except that, where a group policy provides coverage with respect to existing obligations, the insurance on a debtor with respect to such indebtedness shall commence on the effective date of the policy. Where evidence of insurability is required and such evidence is furnished more than thirty days after the date when the debtor becomes obligated to the creditor, the term of the insurance may commence on the date on which the insurance company determines the evidence to be satisfactory, and in such event there shall be an appropriate refund or adjustment of any charge to the debtor for insurance. The term of such insurance shall not extend more than thirty days beyond the scheduled maturity date of the indebtedness except when extended without additional cost to the debtor, unless the debtor has agreed in writing. If the indebtedness is discharged due to renewal or refinancing prior to the scheduled maturity date, the insurance in force shall be terminated before any new insurance is issued in connection with the renewed or refinanced indebtedness. In all cases of termination prior to scheduled maturity, a refund shall be paid or credited as provided in section
10-10-110
.
L. 69: p. 537, § 7. C.R.S. 1963: § 72-28-7. L. 83: (1)(b) amended, p. 512, § 1, effective May 16. L. 92: Entire section amended, p. 1570, § 87, effective May 20.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Article 10 - CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Section 10-10-110 - Premiums and refunds

(1)
(a)
If an insurer has elected to file pursuant to section
10-10-109
(2.5)(b), the insurer may revise its schedules of premium rates from time to time and shall file such revised schedules with the commissioner. No insurer shall issue any credit insurance policy for which the premium rate exceeds that determined by the schedules of such insurer as then on file with the commissioner.
(b)
If an insurer has elected to file pursuant to section
10-10-109
(2.5)(c), the insurer may file with the commissioner and use any premium rate or schedule of premium rates that is less than or equal to the premium rate established by the commissioner. Insurers shall not use premium rates higher than the premium rates established by the commissioner.
(2)
(a)
Upon prepayment in full of the indebtedness, all credit insurance issued on such indebtedness shall terminate.
(b)
An insurer, upon receiving notice pursuant to section
5-4-108 (2)
, C.R.S., that a refund or credit of unearned premiums on insurance issued under this article is required by section
5-4-108 (1)
, C.R.S., shall make the appropriate refund or credit to the person entitled thereto within thirty days of receipt of such notice. The formula to be used in computing the refund or credit shall be filed with and approved by the commissioner. No refund of less than one dollar need be made.
(3)
If a creditor requires a debtor to make any payment for credit insurance and an individual policy or group certificate of insurance is not issued, the creditor shall immediately give written notice to such debtor and shall promptly make an appropriate credit to the account.
(4)
The amount charged to a debtor for any credit insurance shall not exceed the premiums charged by the insurer, as computed at the time the charge to the debtor is determined.
(5)
Nothing in this article shall be construed to authorize any payments for insurance now prohibited under any statute, or rule thereunder, governing credit transactions.
L. 69: p. 540, § 10. C.R.S. 1963: § 72-28-10. L. 88: (2) R&RE, p. 340, § 2, effective July 1. L. 92: (1), (3), and (4) amended, p. 1572, § 90, effective May 20. L. 2001: (1) amended, p. 894, § 4, effective 7/1/2002.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Article 10 - CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Section 10-10-111 - Issuance of policies

All policies of credit insurance shall be delivered or issued for delivery in this state only by an insurer authorized to do an insurance business therein and shall be issued only through holders of licenses or authorizations issued by the commissioner.
L. 69: p. 540, § 11. C.R.S. 1963: § 72-28-11. L. 92: Entire section amended, p. 1572, § 91, effective May 20.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Article 10 - CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Section 10-10-112 - Claims

(1)
All claims shall be promptly reported to the insurer or its designated claim representative, and the insurer shall maintain adequate claim files. All claims shall be settled as soon as possible and in accordance with the terms of the insurance contract.
(2)
All claims shall be paid either by draft drawn upon the insurer or by check of the insurer to the order of the claimant to whom payment of the claim is due pursuant to the policy provisions or upon direction of such claimant to one specified.
(3)
No plan or arrangement shall be used whereby any person, firm, or corporation, other than the insurer or its designated claim representative, is authorized to settle or adjust claims. The creditor shall not be designated as claim representative for the insurer in adjusting claims, but a group policyholder may, by arrangement with the group insurer, draw drafts or checks in payment of claims due to the group policyholder subject to audit and review by the insurer.
L. 69: p. 540, § 12. C.R.S. 1963: § 72-28-12.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Article 10 - CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Section 10-10-113 - Existing insurance - choice of insurer

When credit insurance is required as additional security for any indebtedness, the debtor shall, upon request to the creditor, have the option of furnishing the required amount of insurance through existing policies of insurance owned or controlled by him or of procuring and furnishing the required coverage through any insurer authorized to transact an insurance business within this state.
L. 69: p. 541, § 13. C.R.S. 1963: § 72-28-13. L. 92: Entire section amended, p. 1572, § 92, effective May 20.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Article 10 - CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Section 10-10-114 - Enforcement

The commissioner may, after notice and hearing, issue such rules and regulations as he deems appropriate for the supervision of this article. If the commissioner finds that there has been a violation of this article or any rules or regulations issued pursuant thereto, and after written notice thereof and hearing given to the insurer or other person authorized or licensed by the commissioner, he shall set forth the details of his findings, together with an order for compliance by a specified date. Such order is binding on the insurer or other person authorized or licensed by the commissioner on the date specified, unless sooner withdrawn by the commissioner or a stay thereof has been ordered by a court of competent jurisdiction.
L. 69: p. 541, § 14. C.R.S. 1963: § 72-28-14.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Article 10 - CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Section 10-10-115 - Judicial review

Any party to the proceeding affected by an order of the commissioner shall be entitled to judicial review by the court of appeals by following the procedure set forth in section
24-4-106(11)
, C.R.S.
L. 69: p. 541, § 15. C.R.S. 1963: § 72-28-15. L. 92: Entire section amended, p. 1572, § 93, effective May 20.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Article 10 - CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Section 10-10-116 - Penalties

In addition to any other penalty provided by law, any person, firm, or corporation which violates an order of the commissioner after it has become final, and while such order is in effect, shall, upon proof thereof to the satisfaction of the court, forfeit and pay to the division of insurance a sum not to exceed two hundred fifty dollars which may be recovered in a civil action; except that, if such violation is found to be willful, the amount of such penalty shall be a sum not to exceed one thousand dollars. The commissioner, in his discretion, may revoke or suspend the insurance license or certificate of authority of the person, firm, or corporation guilty of such violation. Such order for suspension or revocation shall be upon notice and hearing and shall be subject to judicial review as provided in section
10-10-115
.
L. 69: p. 541, § 16. C.R.S. 1963: § 72-28-16.
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Article 10 - CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Section 10-10-117 - Insurance expense not computed as cost of loan

In connection with insurance which is permitted under this article, the premium and any gain or advantage to the creditor, or to any employee, affiliate, or associate of the creditor, from such insurance or its sale shall not be deemed to be an additional or further interest, discount, or charge, and the creditor may receive commissions on the premium paid for such insurance if the creditor or an employee of the creditor is a duly licensed insurance broker or agent under the insurance laws of the state of Colorado.
L. 69: p. 541, § 17. C.R.S. 1963: § 72-28-17.
Agents and brokers referenced in this section are referred to as insurance producers, pursuant to part 4 of article 2 of this title 10. (See chapter 257, Session Laws of Colorado 1993.)
2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Article 10 - CREDIT INSURANCE (§§ 10-10-101 — 10-10-119) › Section 10-10-118 - Charge accounts

Nothing in this article shall be construed to permit credit insurance to be required by any creditor for revolving charge accounts or any other charge accounts for the purchase of goods or services.
L. 69: p. 541, § 18. C.R.S. 1963: § 72-28-18. L. 92: Entire section amended, p. 1572, § 94, effective May 20.