Colorado § 10-2-1005 Duties of insurers

Colorado Statutes

§ 10-2-1005 — Duties of insurers

Colorado·Title 10 Insurance·Art. Licenses

(1)The insurer shall have on file an independent financial examination, in a form acceptable to the commissioner, of each MGA with which it has done business.

(2)If an MGA establishes loss reserves, the insurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the MGA. This is in addition to any other required loss reserve certification.

(3)The insurer shall periodically and at least semiannually conduct an on-site review of the underwriting and claims processing operations of the MGA.

(4)Binding authority for all reinsurance contracts or participation in insurance or reinsurance syndicates shall rest with an officer of the insurer, who shall not be affiliated with

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(1) The insurer shall have on file an
independent financial examination, in a form acceptable to the commissioner, of
each MGA with which it has done business.

(2) If an MGA establishes loss reserves, the insurer shall annually obtain the
opinion of an actuary attesting to the adequacy of loss reserves established for
losses incurred and outstanding on business produced by the MGA. This is in
addition to any other required loss reserve certification.

(3) The insurer shall periodically and at least semiannually conduct an on-site review of the underwriting and claims processing operations of the MGA.

(4) Binding authority for all reinsurance contracts or participation in
insurance or reinsurance syndicates shall rest with an officer of the insurer, who
shall not be affiliated with the MGA.

(5) Within thirty days of entering into or termination of a contract with an
MGA, the insurer shall provide written notification of such appointment or
termination to the commissioner. Notices of appointment of an MGA shall include a
statement of duties which the applicant is expected to perform on behalf of the
insurer, the lines of insurance for which the applicant is to be authorized to act, and
any other information the commissioner may request.

(6) An insurer shall review its books and records each quarter to determine if
any producer has become an MGA as defined in section 10-2-1002 (2). If the insurer
determines that a producer has become an MGA pursuant to section 10-2-1002 (2),
the insurer shall promptly notify the producer and the commissioner of such
determination and the insurer and producer shall fully comply with the provisions of
this part 10 within thirty days.

(7) An insurer shall not appoint to its board of directors an officer, director,
employee, subproducer, or controlling shareholder of its MGA's. This subsection (7)
shall not apply to relationships governed by part 8 of article 3 of this title.

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