§ 10-2-401 — License required

Colorado § 10-2-401

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Licenses

Text

(1) No person shall act as or hold oneself out to
be an insurance producer unless duly licensed as an insurance producer in
accordance with this article. Every insurance producer who solicits or negotiates an
application for insurance of any kind on behalf of an insurer shall be regarded as
representing the insurer and not the insured or any beneficiary of the insured in any
controversy between the insurer and such insured or beneficiary. A person shall not
sell, solicit, or negotiate insurance in this state for any class or classes of insurance
unless the person is licensed for that line of authority in accordance with this
article.

(2) No insurance producer shall make application for, procure, negotiate for,
or place for others any policies for any line or lines of insurance for which he or she
is not then qualified and licensed.

(3) (a) Any representative of a fraternal benefit society who solicits and
negotiates insurance contracts is an insurance producer and is subject to the same
licensing requirements as those for an insurance producer; except that a license is
not required of any officer, employee, or secretary of a fraternal benefit society or
of a subordinate lodge or branch thereof who devotes substantially all of his or her
time to activities other than the solicitation or negotiation of insurance contracts
and who receives no commission or other compensation directly dependent upon
the number or amount of insurance contracts solicited or negotiated.

(b) Any agent, representative, or member of a fraternal benefit society who
in the preceding calendar year solicited and procured life insurance contracts on
behalf of any society in a face amount of insurance not exceeding fifty thousand
dollars or, in the case of any other kind of insurance that the fraternal benefit
society may write, solicited and procured such insurance on behalf of not more than
twenty-five individuals, who received no commissions or other compensation
therefor, and who does not reasonably expect to exceed soliciting or procuring
insurance on behalf of more than twenty-five individuals in the current year, shall
be exempt from the licensing requirements for an insurance producer.

(4) No insurance producer license shall be granted or extended to any
person if the license is being or will be used for the purpose of writing controlled
business. As used in this section, controlled business means insurance procured
or to be procured by or through such person upon:

(a) The person's own life, person, property, or risks, or those of his or her
spouse; or

(b) The life, person, property, or risks of the person's employer or the
person's own business.

(5) Such a license shall be deemed to have been, or intended to be, used for
the purpose of writing controlled business, if during any twelve-month period the
aggregate amount of premiums on controlled business would exceed the
aggregate amount of premiums on all other insurance business of the applicant or
licensee.

(6) A title insurance agent and a title insurance company, as defined in
section 10-11-102 (9) and (10), shall disclose the names of all affiliated business
arrangements to which the company or agent is a party at the time of application
for a new license, on the continuation due date of an existing license, and upon a
change to any identifying information, in a form and manner acceptable to the
commissioner. The disclosure shall include the physical location of the affiliated
businesses, identify the settlement producer with whom the company or agent is
associated, and identify the underwriter of the title insurance business.

Legislative History

Source: L. 93: Entire article R&RE, p. 1355, � 1, effective January 1, 1995. L. 94: (3) amended, p. 740, � 1, effective January 1, 1995. L. 2001: (1) amended, p. 1195, � 8, effective January 1, 2002. L. 2006: (6) added, p. 268, � 3, effective July 1.