2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3.5-111) › Article 3 - REGULATION OF INSURANCE COMPANIES (§§ 10-3-101 — 10-3-1716) › Part 8 - INSURANCE HOLDING COMPANY SYSTEMS (§§ 10-3-801 — 10-3-816) › Section 10-3-807.5 - Group-wide supervision of internationally active insurance groups - information collection - cooperation - rules

(1)
(a)
The commissioner may act as the group-wide supervisor for any internationally active insurance group in accordance with this section. However, the commissioner, in cooperation with other state, federal, and international regulatory agencies, may designate or acknowledge another regulatory official as the group-wide supervisor for an internationally active insurance group that:
(I)
Does not have substantial insurance operations in the United States;
(II)
Has substantial insurance operations in the United States, but not in Colorado; or
(III)
Has substantial insurance operations in the United States and in Colorado, but the commissioner has determined pursuant to the factors set forth in subsections (2) and (6) of this section that the other regulatory official is the appropriate group-wide supervisor.
(b)
An insurance holding company system that does not qualify as an internationally active insurance group may request that the commissioner designate or acknowledge a group-wide supervisor pursuant to this section.
(2)
(a)
When designating or acknowledging a group-wide supervisor pursuant to subsection (1) of this section, the commissioner shall consider the following factors:
(I)
The place of domicile of the insurers within the internationally active insurance group that hold the largest share of the group's written premiums, assets, or liabilities;
(II)
The place of domicile of the top-tiered insurer or insurers in the insurance holding company system of the internationally active insurance group;
(III)
The location of the executive offices or the largest operational offices of the internationally active insurance group;
(IV)
Whether another regulatory official is acting or is seeking to act as the group-wide supervisor under a regulatory system that the commissioner determines to be:
(A)
Substantially similar to the system of regulation provided under the laws of this state; or
(B)
Otherwise sufficient in terms of providing for group-wide supervision, enterprise risk analysis, and cooperation with other regulatory officials; and
(V)
Whether another regulatory official acting or seeking to act as the group-wide supervisor provides the commissioner with reasonably reciprocal recognition and cooperation.
(b)
The commissioner shall designate a regulatory official other than the commissioner to serve as the group-wide supervisor of an internationally active insurance group only:
(I)
After consideration of the factors listed in subsection (2)(a) of this section;
(II)
In cooperation with and subject to the acknowledgment of other regulatory officials involved with supervision of members of the internationally active insurance group; and
(III)
In consultation with the internationally active insurance group.
(3)
Notwithstanding any other provision of law, when another regulatory official is acting as the group-wide supervisor of an internationally active insurance group, the commissioner shall acknowledge that regulatory official as the group-wide supervisor. However, the commissioner shall make a new designation or acknowledgment as to the appropriate group-wide supervisor for the internationally active insurance group in the event of a material change that results in:
(a)
The internationally active insurance group's insurers domiciled in this state holding the largest share of the group's premiums, assets, or liabilities; or
(b)
This state being the place of domicile of the top-tiered insurer or insurers in the insurance holding company system of the internationally active insurance group.
(4)
Pursuant to section
10-3-806
, the commissioner may collect from any insurer registered pursuant to section
10-3-804
all information necessary to determine whether the commissioner may act as the group-wide supervisor of an internationally active insurance group or acknowledge another regulatory official to act as the group-wide supervisor. Prior to issuing a determination that an internationally active insurance group is subject to group-wide supervision by the commissioner, the commissioner shall notify the insurer and the ultimate controlling person within the internationally active insurance group of the pending determination. After receiving such notice, the internationally active insurance group has thirty days to provide the commissioner with additional information pertinent to the pending determination. The commissioner shall publish in the Colorado register and on the division's website the identity of internationally active insurance groups that the commissioner has determined are subject to group-wide supervision by the commissioner.
(5)
If the commissioner is the group-wide supervisor for an internationally active insurance group, the commissioner may engage in any of the following group-wide supervision activities:
(a)
Assess the enterprise risks within the internationally active insurance group to ensure that:
(I)
The material financial condition and liquidity risks to the members of the internationally active insurance group that are engaged in the business of insurance are identified by management; and
(II)
Reasonable and effective mitigation measures are in place;
(b)
Request, from any member of an internationally active insurance group subject to the commissioner's supervision, information necessary and appropriate to assess enterprise risk, including information about the members of the internationally active insurance group regarding:
(I)
Governance, risk assessment, and management;
(II)
Capital adequacy; and
(III)
Material intercompany transactions;
(c)
Coordinate and, through the authority of the regulatory officials of the jurisdictions where members of the internationally active insurance group are domiciled, compel development and implementation of reasonable measures designed to ensure that the internationally active insurance group is able to timely recognize and mitigate enterprise risks to members of the internationally active insurance group that are engaged in the business of insurance;
(d)
Communicate with other state, federal, and international regulatory agencies for members within the internationally active insurance group and share relevant information, subject to the confidentiality provisions of section
10-3-808
, whether through supervisory colleges as set forth in section
10-3-807
or otherwise;
(e)
Enter into agreements with or obtain documentation from any insurer registered under section
10-3-804
, any member of the internationally active insurance group, and any other state, federal, or international regulatory agencies for members of the internationally active insurance group, providing the basis for or otherwise clarifying the commissioner's role as group-wide supervisor, including provisions for resolving disputes with other regulatory officials. Such agreements or documentation may not serve as evidence in any proceeding that an insurer or a person within an insurance holding company system, which insurer or person is not domiciled or incorporated in this state, is doing business in this state or is otherwise subject to jurisdiction in this state.
(f)
Other group-wide supervision activities, consistent with the authorities and purposes described in this subsection (5), as the commissioner considers necessary.
(6)
If the commissioner acknowledges that another regulatory official from a jurisdiction that is not accredited by the NAIC is the group-wide supervisor, the commissioner may reasonably cooperate, through supervisory colleges or otherwise, with group-wide supervision undertaken by the group-wide supervisor, so long as:
(a)
The commissioner's cooperation is in compliance with the laws of this state; and
(b)
The regulatory official acknowledged as the group-wide supervisor also recognizes and cooperates with the commissioner's activities as a group-wide supervisor for other internationally active insurance groups where applicable. Where such recognition and cooperation is not reasonably reciprocal, the commissioner may refuse recognition and cooperation.
(7)
The commissioner may enter into agreements with or obtain documentation from any insurer registered under section
10-3-804
, any affiliate of the insurer, or any other state, federal, or international regulatory agency for members of the internationally active insurance group, which agency provides the basis for or otherwise clarifies a regulatory official's role as group-wide supervisor.
(8)
The commissioner may promulgate rules necessary for the administration of this section.
(9)
A registered insurer subject to this section is liable for and shall pay the reasonable expenses of the commissioner's participation in the administration of this section, including the engagement of attorneys, actuaries, and any other professionals and all reasonable travel expenses.
Added by 2019 Ch. 188,§ 3, eff. 8/2/2019.
L. 2019: Entire section added, (HB 19-1291), ch. 2090, p. 2090, § 3, effective August 2.