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 4 - DELINQUENCIES (§§ 10-3-401 — 10-3-414) › Section 10-3-406 - Protest of finding of delinquency

In the event the insurance company protests the determination of delinquency by the commissioner, the commissioner shall stay his decision to place the insurance company under direct supervision and shall give the insurance company not less than fifteen days to show cause, at a hearing conducted by the commissioner, why such a determination should not be made. In cases of emergency, the commissioner may allow his determination of delinquency to stand until the insurance company, under the show cause order or at the hearing, gives sufficient proof that the commissioner's determination was erroneous.
L. 69: p. 546, § 3. C.R.S. 1963: § 72-29-6.
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 4 - DELINQUENCIES (§§ 10-3-401 — 10-3-414) › Section 10-3-407 - Costs of direct supervision

All costs incident to the services of direct supervision shall be determined by the commissioner, and all reasonable costs so determined shall be a charge against the assets and funds of the insurance company so directly supervised.
L. 69: p. 546, § 3. C.R.S. 1963: § 72-29-7.
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INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 4 - DELINQUENCIES (§§ 10-3-401 — 10-3-414) › Section 10-3-408 - [Repealed]

L. 69: p. 546, § 3. C.R.S. 1963: § 72-29-8. L. 92: Entire section repealed, p. 1426, § 8, effective July 1.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INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 4 - DELINQUENCIES (§§ 10-3-401 — 10-3-414) › Section 10-3-409 - [Repealed]

L. 69: p. 547, § 3. C.R.S. 1963: § 72-29-9. L. 92: Entire section repealed, p. 1427, § 9, effective July 1.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 4 - DELINQUENCIES (§§ 10-3-401 — 10-3-414) › Section 10-3-410 - [Repealed]

L. 69: p. 547, § 3. C.R.S. 1963: § 72-29-10. L. 92: Entire section repealed, p. 1427, § 10, 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 4 - DELINQUENCIES (§§ 10-3-401 — 10-3-414) › Section 10-3-411 - Penalties for noncompliance

Any insurance company or any officer or official thereof who willfully fails to comply with an order of the commissioner while such insurance company is under direct supervision of the commissioner commits a class 2 misdemeanor.
Amended by 2021 Ch. 462,§ 113, eff. 3/1/2022.
L. 69: p. 547, § 3. C.R.S. 1963: § 72-29-11. L. 92: Entire section amended, p. 1427, § 11, effective July 1.
Section 803(2) of chapter 462 (SB 21-271), Session Laws of Colorado 2021, provides that the act changing this section applies to offenses committed on or after March 1, 2022.
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 4 - DELINQUENCIES (§§ 10-3-401 — 10-3-414) › Section 10-3-412 - Review of action while under direct supervision

At any time during the period of direct supervision, or at any time pending abatement of the commissioner's determination of delinquency, the insurance company may request the commissioner, or his duly appointed deputy, to review an action taken or proposed to be taken by the direct supervisor, specifying in what manner the action complained of is believed not to be in the best interests of the insurance company. The insurance company shall be entitled to a hearing on such a request, if desired by the company.
L. 69: p. 547, § 3. C.R.S. 1963: § 72-29-12. L. 92: Entire section amended, p. 1427, § 12, 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 4 - DELINQUENCIES (§§ 10-3-401 — 10-3-414) › Section 10-3-413 - Appeal from final determination or order of commissioner

(1)
Upon exhausting all means of administrative appeal provided in this part 4, or in case the commissioner, under section
10-3-406
, refuses to stay his order or determination pending the show cause order and hearing, the insurance company aggrieved by such determination or order may avail itself of the following procedure of appeal and none other:
(a)
The insurance company shall file a petition setting forth its particular objection to the order or determination in the district court in and for the city and county of Denver, and not elsewhere, against the commissioner as defendant. Said action shall have precedence over all other cases on the docket of a different nature. The action shall not be limited to questions of law but shall be tried and determined upon a trial de novo.
(b)
Either party to said action may appeal to the appellate court having jurisdiction of said cause of action, and said appeal shall have precedence in the appellate court over all causes of action of a different character pending in the appellate court.
(2)
The commissioner is not required to give any appeal bond in any cause arising under this section.
L. 69: p. 547, § 3. C.R.S. 1963: § 72-29-13. L. 92: IP(1) amended, p. 1428, § 13, 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 4 - DELINQUENCIES (§§ 10-3-401 — 10-3-414) › Section 10-3-414 - Nondisclosure of reports and evidence during period of direct supervision or conservatorship

Any other provision of law notwithstanding, the commissioner shall not divulge to the public any examination report, results of investigation, or other information received by the division of insurance on, about, or relating to any insurance company which would be detrimental to the efforts of rehabilitation of that company under this part 4.
L. 69: p. 548, § 3. C.R.S. 1963: § 72-29-14.
For the publication of reports and statements, see § 10-3-109.
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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-501 - Legislative declaration - intents and purposes

(1)
This part 5 shall not be interpreted to limit the powers granted the commissioner by other provisions of law.
(2)
This part 5 shall be liberally construed to effect the purpose stated in subsection (3) of this section.
(3)
The purpose of this part 5 is to protect the interests of insureds, claimants, creditors, and the public generally, with minimum interference with the normal prerogatives of the owners and managers of insurers, through:
(a)
Early detection of any potentially dangerous condition in an insurer, and prompt application of appropriate corrective measures;
(b)
Improved methods for rehabilitating insurers, involving the cooperation and management expertise of the insurance industry;
(c)
Enhanced efficiency and economy of liquidation, through clarification of the law, to minimize legal uncertainty and litigation;
(d)
Equitable apportionment of any unavoidable loss;
(e)
Lessening the problems of interstate rehabilitation and liquidation of insurers by facilitating cooperation between states in the liquidation process and by extending the scope of personal jurisdiction over debtors of insurers outside this state;
(f)
Regulation of the insurance business by means of laws relating to delinquency procedures and substantive rules relating to the insurance business generally; and
(g)
The provision of a comprehensive scheme for the rehabilitation and liquidation of insurance companies and those subject to this part 5 as part of the regulation of the business of insurance, the insurance industry, and insurers in this state.
(4)
The general assembly finds, determines, and declares that proceedings in cases of insurer insolvency and delinquency are an integral aspect of the business of insurance and are of vital public interest and concern.
L. 92: Entire part R&RE, p. 1428, § 14, 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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-503 - Persons covered

(1)
The proceedings authorized by this part 5 may be applied to:
(a)
All insurers who are doing, or have done, an insurance business in this state and against whom claims arising from that business may exist now or in the future;
(b)
All insurers who purport to do an insurance business in this state;
(c)
All insurers who have insureds resident in this state;
(d)
All other persons organized or in the process of organizing with the intent to do an insurance business in this state;
(e)
All fraternal benefit societies and beneficial societies subject to article
14
of this title;
(f)
All title insurance companies subject to the "Title Insurance Code of Colorado", article
11
of this title;
(g)
All health-care plans subject to parts 1, 4, and 5 of article
16
of this title 10; and
(h)
All employers' self-insurance pools created pursuant to section
8-44-205
, C.R.S.
Amended by 2020 Ch. 216,§ 10, eff. 6/30/2020.
L. 92: Entire part R&RE, p. 1431, § 14, effective July 1.
(1) The "Prepaid Dental Care Plan Law of Colorado", referred to in subsection (1)(g), was repealed, effective July 1, 1992. Current provisions relating to prepaid dental care plans are located in part 5 of article
16
of this title 10.
(2) The "Colorado Health Maintenance Organization Act", referred to in subsection (1)(g), was repealed, effective July 1, 1992. Current provisions relating to HMOs are located in parts 1 and 4 of article
16
of this title 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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-504 - Jurisdiction - venue

(1)
No delinquency proceeding shall be commenced under this part 5 by anyone other than the commissioner, and no court shall have jurisdiction to entertain, hear, or determine any proceeding commenced by any other person.
(2)
The district court in and for the city and county of Denver shall have jurisdiction to entertain, hear, or determine any complaint praying for the dissolution, liquidation, rehabilitation, sequestration, conservation, or receivership of any insurer, or praying for an injunction or restraining order or other relief preliminary to, incidental to, or relating to such proceedings other than in accordance with this part 5.
(3)
In addition to other grounds for jurisdiction provided by law, the district court in and for the city and county of Denver has jurisdiction over a person served pursuant to the rules of civil procedure or other applicable provisions of law in an action brought by the receiver of a domestic insurer or an alien insurer domiciled in this state if:
(a)
The person served is an agent, broker, or other person who has at any time written policies of insurance for or has acted in any manner whatsoever on behalf of an insurer against which a delinquency proceeding has been instituted in any action resulting from or incident to such a relationship with the insurer; or
(b)
The person served is a reinsurer who has at any time entered into a contract of reinsurance with an insurer against which a delinquency proceeding has been instituted, or is an agent or broker of or for the reinsurer, in any action on or incident to the reinsurance contract; or
(c)
The person served is or has been an officer, director, manager, trustee, organizer, promoter, or other person in a position of comparable authority or influence over an insurer against which a delinquency proceeding has been instituted, in any action resulting from or incident to such a relationship with the insurer; or
(d)
The person served is or was at the time of the institution of the delinquency proceeding against the insurer holding assets in which the receiver claims an interest on behalf of the insurer, in any action concerning such assets; or
(e)
The person served is obligated to the insurer in any way whatsoever, in any action on or incident to the obligation.
(4)
If the court on motion of any party finds that any action should as a matter of substantial justice be tried in a forum outside this state, the court may enter an appropriate order to stay further proceedings on the action in this state.
(5)
All actions authorized pursuant to this part 5 shall be brought in the district court in and for the city and county of Denver.
L. 92: Entire part R&RE, p. 1432, § 14, effective July 1.
This section is similar to former § 10-3-503 as it existed prior to 1992.
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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-504.5 - Application for receivership - penalty

No application or proceeding for a receivership of any domestic insurance company shall be made in any court in this state by any person, nor shall any court receive or entertain any such application or proceeding, unless and until such application is approved by the commissioner, and then such application shall be made only by the attorney general of the state. The commissioner shall not give said approval until after the examination and hearing by the commissioner and the attorney general, which shall not be made public, at which the company affected shall be given ample opportunity to submit the facts as to its condition. Any person who violates any provisions of this section commits a class 2 misdemeanor.
Amended by 2021 Ch. 462,§114, eff. 3/1/2022.
L. 92: Entire part R&RE, p. 1433, § 14, effective July 1.
(1) This section is similar to former § 10-3-503 as it existed prior to 1992.
(2) Section 803(2) of chapter 462 (SB 21-271), Session Laws of Colorado 2021, provides that the act changing this section applies to offenses committed on or after March 1, 2022.
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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-505 - Injunctions - orders

(1)
Any receiver appointed in a proceeding under this part 5 may at any time apply for, and any court of general jurisdiction may grant, such restraining orders, preliminary and permanent injunctions, and other orders as may be deemed necessary and proper to prevent:
(a)
The transaction of further business;
(b)
The transfer of property;
(c)
Interference with the receiver or with a proceeding under this part 5;
(d)
Waste of the insurer's assets;
(e)
Dissipation or transfer, or both, of bank accounts;
(f)
The institution or further prosecution of any actions or proceedings;
(g)
The obtaining of preferences, judgments, attachments, garnishments, or liens against the insurer, its assets, or its policyholders;
(h)
The levying of execution against the insurer, its assets, or its policyholders;
(i)
The making of any sale or deed for nonpayment of taxes or assessments that would tend to lessen the value of the assets of the insurer;
(j)
The withholding from the receiver of books, accounts, documents, or other records relating to the business of the insurer; or
(k)
Any other threatened or contemplated action that might tend to lessen the value of the insurer's assets or prejudice the rights of policyholders, creditors, or shareholders or the administration of any proceeding under this part 5.
(2)
The receiver may, if necessary, apply to any court outside of the state for the relief described in subsection (1) of this section.
(3)
Notwithstanding subsections (1) and (2) of this section and any other provision of this title, a federal home loan bank shall not be stayed, enjoined, or prohibited from exercising or enforcing any right or cause of action regarding collateral pledged under a security agreement or under any pledge agreement, security agreement, collateral agreement, guarantee agreement, or other similar arrangement or credit enhancement relating to a security agreement to which the federal home loan bank is a party.
Amended by 2014 Ch. 57,§ 2, eff. 3/21/2014.
L. 92: Entire part R&RE, p. 1434, § 14, effective July 1. L. 2014: (3) added, (HB 14-1215), ch. 57, p. 257, § 2, effective March 21.
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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-506 - Cooperation of officers, owners, and employees

(1)
Any officer, manager, director, trustee, owner, employee, or agent of any insurer, or any other person with authority over or in charge of any segment of the insurer's affairs, shall cooperate with the commissioner in any proceeding under this part 5 or any investigation preliminary to the proceeding. The term "person" as used in this section shall include any person who exercises control directly or indirectly over activities of the insurer through any holding company or other affiliate of the insurer. "To cooperate" shall include, but shall not be limited to, the following:
(a)
To reply promptly in writing to any inquiry from the commissioner requesting such a reply; and
(b)
To make available to the commissioner any books, accounts, documents, or other records or information or property of or pertaining to the insurer and in the person's possession, custody, or control.
(2)
No person shall obstruct or interfere with the commissioner in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto.
(3)
This section shall not be construed to abridge otherwise existing legal rights, including the right to resist a petition for liquidation or other delinquency proceedings or other orders.
(4)
Any person included within subsection (1) of this section who fails to cooperate with the commissioner, or any person who obstructs or interferes with the commissioner in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto, or who violates any valid order of the commissioner issued pursuant to this part 5 may:
(a)
Be subject to a fine not to exceed ten thousand dollars or to imprisonment for a term of not more than one year, or both; or
(b)
After a hearing, be subject to the imposition by the commissioner of a civil penalty not to exceed ten thousand dollars or to the revocation or suspension of any insurance licenses issued by the commissioner, or to both such civil penalty and such revocation or suspension.
L. 92: Entire part R&RE, p. 1434, § 14, 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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-507 - Continuation of delinquency proceedings

Every proceeding commenced prior to July 1, 1992, shall be deemed to have been commenced under this part 5 for the purpose of conducting the proceeding thereafter; except that, in the discretion of the commissioner, the proceeding may be continued, in whole or in part, as it would have been continued had this part 5 not been enacted.
L. 92: Entire part R&RE, p. 1435, § 14, 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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-508 - Condition on release from delinquency proceedings

(1)
No insurer subject to any delinquency proceedings, whether formal, informal, administrative, or judicial, shall:
(a)
Be released from such proceeding, unless such proceeding is converted into a judicial rehabilitation or liquidation proceeding;
(b)
Be permitted to solicit or accept new business or request or accept the restoration of any suspended or revoked license or certificate of authority;
(c)
Be returned to the control of its shareholders or private management; or
(d)
Have any of its assets returned to the control of its shareholders or private management until all payments of or on account of the insurer's contractual obligations by all guaranty associations, along with all expenses thereof and interest on all such payments and expenses, shall have been repaid to the guaranty associations or a plan of repayment by the insurer shall have been approved by the guaranty association.
L. 92: Entire part R&RE, p. 1435, § 14, 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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-510 - Confidentiality of hearings

In all proceedings and judicial reviews thereof under section
10-3-509
, all records of the insurer, other documents, and all division files and court records and papers, so far as they pertain to or are a part of the record of the proceedings, shall be and remain confidential except as is necessary to obtain compliance therewith, unless and until the court, after hearing arguments from the parties in chambers, shall order otherwise or unless the insurer requests that the matter be made public. Until such court order, all papers filed with the clerk of the court shall be held in a confidential file.
L. 92: Entire part R&RE, p. 1437, § 14, 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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-512 - Rehabilitation orders

(1)
An order to rehabilitate the business of a domestic insurer or an alien insurer domiciled in this state shall appoint the commissioner as the rehabilitator and shall direct the rehabilitator forthwith to take possession of the assets of the insurer and to administer such assets under the general supervision of the court. The filing or recording of the order with the clerk of the district court in and for the city and county of Denver or with the recorder of deeds of the county in which the principal business of the company is conducted or the county in which its principal office or place of business is located shall impart the same notice as would be imparted by a deed, bill of sale, or other evidence of title duly filed or recorded with such recorder of deeds. The order to rehabilitate the insurer shall by operation of law vest title to all assets of the insurer in the rehabilitator.
(2)
Any order issued under this section shall require accounting to the court by the rehabilitator. Accounting shall be at such intervals as the court specifies in its order, but no less frequently than semiannually. Each accounting shall include a report concerning the rehabilitator's opinion as to the likelihood that a plan under section
10-3-513(4)
will be prepared by the rehabilitator and the timetable for doing so.
(3)
Entry of an order of rehabilitation shall not constitute an anticipatory breach of any contract of the insurer, nor shall it be a basis for retroactive revocation or retroactive cancellation of any contract of the insurer, unless such revocation or cancellation is done by the rehabilitator pursuant to section
10-3-513
.
L. 92: Entire part R&RE, p. 1439, § 14, 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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-514 - Actions by and against rehabilitator

(1)
Any court in this state before which any action or proceeding in which the insurer is a party, or is obligated to defend a party, is pending when a rehabilitation order against the insurer is entered shall stay the action or proceeding for a minimum of ninety days and for such additional time as is necessary for the rehabilitator to obtain proper representation and prepare for further proceedings. The rehabilitator shall take such action respecting the pending litigation as the rehabilitator deems necessary in the interests of justice and for the protection of creditors, policyholders, and the public. The rehabilitator shall immediately consider all litigation pending outside this state and shall petition the courts having jurisdiction over that litigation for stays whenever necessary to protect the estate of the insurer.
(2)
No statute of limitations or defense of laches shall run with respect to any action by or against an insurer between the filing of a petition for appointment of a rehabilitator for that insurer and the order granting or denying that petition. Any action against the insurer that might have been commenced when the petition was filed may be commenced within a period of not less than sixty days after the order of rehabilitation is entered or the petition is denied. The rehabilitator may, upon an order for rehabilitation, within one year or such other longer time as applicable law may permit, institute an action or proceeding on behalf of the insurer upon any cause of action against which the period of limitation fixed by applicable law had not expired at the time of the filing of the petition upon which such order is entered.
(3)
Any guaranty association or foreign guaranty association covering life or health insurance or annuities shall have standing to appear in any court proceeding concerning the rehabilitation of a life or health insurer if such association is or may become liable to act as a result of the rehabilitation.
(4)
Notwithstanding subsection (1) of this section and any other provision of this title, a federal home loan bank shall not be stayed, enjoined, or prohibited from exercising or enforcing any right or cause of action regarding collateral pledged under a security agreement or under any pledge agreement, security agreement, collateral agreement, guarantee agreement, or other similar arrangement or credit enhancement relating to a security agreement to which the federal home loan bank is a party.
Amended by 2014 Ch. 57,§ 3, eff. 3/21/2014.
L. 92: Entire part R&RE, p. 1441, § 14, effective July 1. L. 2014: (4) added, (HB 14-1215), ch. 57, p. 257, § 3, effective March 21.
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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-515 - Termination of rehabilitation

(1)
Whenever the commissioner believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders, or the public, or would be futile, the commissioner may petition the district court in and for the city and county of Denver for an order of liquidation. A petition under this subsection (1) shall have the same effect as a petition under section
10-3-516
. The court shall permit the directors of the insurer to take such actions as are reasonably necessary to defend against the petition and may order payment from the estate of the insurer of such costs and other expenses of defense as justice may require.
(2)
The protection of the interests of insureds, claimants, and the public requires the timely performance of all insurance policy obligations. If the payment of an insurer's policy obligations is suspended in substantial part for a period of six months at any time after the appointment of the rehabilitator and the rehabilitator has not filed an application for approval of a plan under section
10-3-513(5)
, the rehabilitator shall petition the court for an order of liquidation on grounds of insolvency.
(3)
The rehabilitator may at any time petition the district court in and for the city and county of Denver for an order terminating rehabilitation of an insurer. The court shall also permit the directors of the insurer to petition the court for an order terminating rehabilitation of the insurer and may order payment from the estate of the insurer of such costs and other expenses of such petition as justice may require. If the court finds that rehabilitation has been accomplished and that grounds for rehabilitation under section
10-3-511
no longer exist, it shall order that the insurer be restored to possession of its property and the control of the business. The court may also make such a finding and issue such an order at any time upon its own motion.
L. 92: Entire part R&RE, p. 1445, § 14, 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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-516 - Grounds for liquidation

(1)
The commissioner may petition the district court in and for the city and county of Denver for an order directing the commissioner to liquidate a domestic insurer or an alien insurer domiciled in this state on the basis:
(a)
Of any ground for an order of rehabilitation as specified in section
10-3-511
, whether or not there has been a prior order directing the rehabilitation of the insurer;
(b)
That the insurer is insolvent; or
(c)
That the insurer is in such condition that the further transaction of business would be hazardous, financially or otherwise, to its policyholders, its creditors, or the public.
L. 92: Entire part R&RE, p. 1446, § 14, 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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-518 - Continuation of coverage

(1)
All policies, including bonds and other noncancellable business but not including life or health insurance or annuities, in effect at the time of issuance of an order of liquidation shall continue in force only for the lesser of:
(a)
A period of thirty days from the date of entry of the liquidation order;
(b)
The expiration of the policy coverage;
(c)
The date when the insured has replaced the insurance coverage with equivalent insurance in another insurer or otherwise terminated the policy;
(d)
The effective date of a transfer of the policy obligation by the liquidator pursuant to section
10-3-520(1)(i)
; or
(e)
The date proposed by the liquidator and approved by the court to cancel coverage.
(2)
An order of liquidation under section
10-3-517
shall terminate coverages at the time specified in subsection (1) of this section for purposes of any other statute.
(3)
Policies of life or health insurance or annuities shall continue in force for such period and under such terms as is provided for by any applicable guaranty association or foreign guaranty association.
(4)
Policies of life or health insurance or annuities or any period or coverage of such policies not covered by a guaranty association or foreign guaranty association shall terminate under subsections (1) and (2) of this section.
L. 92: Entire part R&RE, p. 1448, § 14, 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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-519 - Dissolution of insurer

The commissioner may petition for an order dissolving the corporate existence of a domestic insurer or the United States branch of an alien insurer domiciled in this state at the time the commissioner applies for a liquidation order. The court shall order dissolution of the corporation upon petition by the commissioner upon or after the granting of a liquidation order. If the dissolution has not previously been ordered, it shall be effected by operation of law upon the discharge of the liquidator if the insurer is insolvent but may be ordered by the court upon the discharge of the liquidator if the insurer is under a liquidation order for some other reason.
L. 92: Entire part R&RE, p. 1449, § 14, 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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-521 - Notice to creditors and others

(1)
Unless the court otherwise directs, the liquidator shall give or cause to be given notice of the liquidation order as soon as possible:
(a)
By first class mail and either by telegram or telephone to the insurance department of each jurisdiction in which the insurer is doing business;
(b)
By first class mail to any guaranty association or foreign guaranty association which is or may become obligated as a result of the liquidation;
(c)
By first class mail to all insurance agents of the insurer;
(d)
By first class mail to all persons known or reasonably expected to have claims against the insurer, including all policyholders at their last known address as indicated by the records of the insurer; and
(e)
By publication in a newspaper of general circulation in the county in which the insurer has its principal place of business and in such other locations as the liquidator deems appropriate.
(2)
Notice to potential claimants under subsection (1) of this section shall require claimants to file with the liquidator their claims together with proper proofs thereof under section
10-3-535
, on or before a date the liquidator shall specify in the notice. Although an earlier date may be set by the liquidator, the last day to file claims shall be no later than eighteen months after the order of liquidation. The liquidator need not require persons claiming cash surrender values or other investment values in life insurance and annuities to file a claim. All claimants shall have a duty to keep the liquidator informed of any changes of address.
(3)
Notice under subsection (1) of this section to agents of the insurer and to potential claimants who are policyholders shall include, where applicable, notice that coverage by state guaranty associations may be available for all or part of policy benefits in accordance with applicable state guaranty laws.
(4)
The liquidator shall promptly provide to the guaranty associations such information concerning the identities and addresses of such policyholders and their policy coverages as may be within the liquidator's possession or control and shall otherwise cooperate with guaranty associations to assist them in providing to such policyholders timely notice of the guaranty associations' coverage of policy benefits, including, as applicable, coverage of claims and continuation or termination of coverages.
(5)
If notice is given in accordance with this section, the distribution of assets of the insurer under this part 5 shall be conclusive with respect to all claimants regardless of whether or not they received notice.
L. 92: Entire part R&RE, p. 1453, § 14, 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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-522 - Duties of agents

(1)
Every person who receives notice in the form prescribed in section
10-3-521
that an insurer which the person represents as an agent is the subject of a liquidation order shall, within thirty days of such notice, provide to the liquidator, in addition to the information such person may be required to provide pursuant to section
10-3-506
, all information in the agent's records related to any policy issued by the insurer through the agent, and, if the agent is a general agent, the information in the general agent's records related to any policy issued by the insurer through an agent under contract to the general agent, including the name and address of such subagent. A policy shall be deemed issued through an agent if the agent has a property interest in the expiration of the policy, or if the agent has had in the agent's possession a copy of the declarations of the policy at any time during the life of the policy, except where the ownership of the expiration of the policy has been transferred to another.
(2)
Any agent failing to provide information to the liquidator as required in subsection (1) of this section may be subject to a penalty of not more than one thousand dollars and, in addition, any licenses of any such agent may be suspended. Such penalty or suspension, or both, shall be imposed only after a hearing held by the commissioner.
L. 92: Entire part R&RE, p. 1454, § 14, 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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-524 - Collection and listing of assets

(1)
As soon as practicable after the liquidation order but not later than one hundred twenty days thereafter, the liquidator shall prepare in duplicate a list of the insurer's assets. The list shall be amended or supplemented from time to time as the liquidator may determine. One copy shall be filed in the office of the clerk of the district court in and for the city and county of Denver and one copy shall be retained for the liquidator's files. All amendments and supplements shall be similarly filed.
(2)
The liquidator shall reduce the assets to a degree of liquidity that is consistent with the effective execution of the liquidation.
(3)
A submission to the court for disbursement of assets in accordance with section
10-3-533
fulfills the requirements of subsection (1) of this section.
L. 92: Entire part R&RE, p. 1456, § 14, 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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-528 - Claims of holders of void or voidable rights

(1)
No claims of a creditor who has received or acquired a preference, lien, conveyance, transfer, assignment, or encumbrance voidable under this part 5 shall be allowed unless such creditor surrenders the preference, lien, conveyance, transfer, assignment, or encumbrance. If the avoidance is effected by a proceeding in which a final judgment has been entered, the claim shall not be allowed unless the money is paid or the property is delivered to the liquidator within thirty days from the date of the entering of the final judgment; except that the court having jurisdiction over the liquidation may allow further time if there is an appeal or other continuation of the proceeding.
(2)
A claim allowable under subsection (1) of this section by reason of the avoidance, whether voluntary or involuntary, or a preference, lien, conveyance, transfer, assignment, or encumbrance, may be filed as an excused last filing under section
10-3-534
if filed within thirty days from the date of the avoidance, or within the further time allowed by the court pursuant to subsection (1) of this section.
L. 92: Entire part R&RE, p. 1463, § 14, 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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-530 - Assessments

(1)
As soon as practicable but not more than two years after the date of an order of liquidation under section
10-3-517
of an insurer issuing assessable policies, the liquidator shall make a report to the court setting forth:
(a)
The reasonable value of the assets of the insurer;
(b)
The insurer's probable total liabilities;
(c)
The probable aggregate amount of the assessment necessary to pay all claims of creditors and expenses in full, including expenses of administration and costs of collecting the assessment; and
(d)
A recommendation as to whether or not an assessment should be made and in what amount.
(2)
(a)
Upon the basis of the report provided pursuant to subsection (1) of this section and including any supplements and amendments thereto, the district court in and for the city and county of Denver may levy one or more assessments against all members of the insurer who are subject to assessment.
(b)
Subject to any applicable legal limits on assessability, the aggregate assessment shall be for the amount by which the sum of the probable liabilities, the expenses of administration, and the estimated cost of collection of the assessment exceeds the value of existing assets, with due regard being given to assessments that cannot be collected economically.
(3)
After levy of assessment under subsection (2) of this section, the liquidator shall issue an order directing each member who has not paid the assessment pursuant to the order to show cause why the liquidator should not pursue a judgment therefor.
(4)
The liquidator shall give notice of the order to show cause by publication and by first class mail to each member liable under such order mailed to the member's last known address as it appears on the insurer's records, at least twenty days before the return day of the order to show cause.
(5)
(a)
If a member does not appear and serve duly verified objections upon the liquidator on or before the return day of the order to show cause under subsection (3) of this section, the court shall make an order adjudging the member liable for the amount of the assessment together with costs, and the liquidator shall have a judgment against the member therefor.
(b)
If, on or before such return day, the member appears and serves duly verified objections upon the liquidator, the commissioner may hear and determine the matter or may appoint a referee to hear it and make such order as the facts warrant. In the event that the commissioner determines that such objections do not warrant relief from assessment, the member may request the court to review the matter and vacate the order to show cause.
(6)
The liquidator may enforce any order or collect any judgment under subsection (5) of this section by any lawful means.
L. 92: Entire part R&RE, p. 1465, § 14, 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 5 - INSURERS' REHABILITATION AND LIQUIDATION (§§ 10-3-501 — 10-3-559) › Section 10-3-531 - Reinsurers' liability

(1)
Except as otherwise provided in subsection (2) of this section, the amount recoverable by the liquidator from reinsurers shall be payable under a contract or contracts reinsured by the reinsurer on the basis of reported claims allowed by the liquidation court without diminution as a result of the insolvency of the ceding insurer. Such payment shall be made directly to the ceding insurer or to its domiciliary liquidator unless the contract or other written agreement specifically provides another payee of such reinsurance in the event of the insolvency of the ceding insurer.
(2)
Notwithstanding subsection (1) of this section, if a life and health insurance guaranty association has elected to succeed to the rights and obligations of the insolvent insurer under the contract of reinsurance, whether pursuant to section
10-20-108(13)(h)
or otherwise, then the reinsurer's liability to pay covered reinsured claims shall continue under the contract of reinsurance, subject to the payment to the reinsurer of the reinsurance premiums for such coverage. Payment for such reinsured claims shall only be made by the reinsurer pursuant to the direction of the guaranty association or its designated successor. Any payment made at the direction of the guaranty association or its designated successor by the reinsurer shall discharge the reinsurer of all further liability to any other party for such claim payment.
L. 92: Entire part R&RE, p. 1466, § 14, effective July 1. L. 2001: Entire section amended, p. 230, § 2, effective July 1.