§ 10-4-402 — Definitions

Colorado § 10-4-402

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Property and Casualty Insurance

Text

As used in this part 4, unless the context otherwise
requires:

(1) Advisory organization means every group, association, or other
organization of insurers, whether located within or outside this state, which
prepares policy forms or assists insurers which make their own rates or rating
organizations in rate-making by the collection and furnishing of loss or expense
statistics or by the submission of recommendations, but which does not make rates
under this part 4. Advisory organization does not include a joint underwriting
association, any actuarial or legal consultant, an insurer or insurers under common
control or management, or their employees or managers.

(1.3) Classification system or classification means the plan, system, or
arrangement for recognizing differences in exposure to hazards among industries,
occupations, or operations of insurance policyholders.

(1.4) Competitive market means a market which has not been found to be
noncompetitive pursuant to section 10-4-403 (5).

(1.5) Expenses means that portion of any rate attributable to acquisition,
field supervision, and collection expenses, general expenses, and taxes, licenses,
and fees.

(1.6) Loss trending means any procedure for projecting developed losses to
the average date of loss for the period during which the policies are to be effective.

(2) Member means an insurer who participates or is entitled to participate
in the management of a rating, advisory, or other organization.

(2.3) Noncompetitive market means a market for which there is a ruling in
effect pursuant to section 10-4-403 (5) that a reasonable degree of competition
does not exist.

(2.4) Pure premium rate means that portion of the rate which represents
the loss cost per unit of exposure, including loss adjustment expenses.

(3) Rating organization means every person, other than an admitted
insurer, which has as its object or purpose the making of pure premium rates, rating
plans, or rating systems. Two or more admitted insurers, other than insurers having
a common ownership or operating in this state under common management or
control, which act in concert for the purpose of making pure premium rates, rating
plans, or rating systems shall be deemed to be a rating organization unless they
operate within the specific authorizations contained in sections 10-4-404, 10-4-409,
10-4-411, and 10-4-412. No single insurer, joint underwriting association, actuarial or
legal consultant, insurer or insurers under common control or management, or their
employees or managers shall be deemed to be a rating organization.

(3.5) Stacking means aggregating, combining, multiplying, or pyramiding
limits of separate policies providing uninsured and underinsured motorist coverage
as provided in section 10-4-609.

(4) Subscriber means an insurer which is furnished, at its request: With
rates and rating manuals by a rating organization of which it is not a member; or
with advisory services by an advisory organization of which it is not a member.

Legislative History

Source: L. 79: Entire part R&RE, p. 363, � 8, effective July 1. L. 91: Entire section amended, p. 1194, � 2, effective April 11. L. 92: (3.5) added, p. 1758, � 1, effective June 5.