§ 10-20-112 — Prevention of insolvencies

Colorado § 10-20-112

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Life and Health Insurance

Text

(1) To aid in the detection and
prevention of member insurer insolvencies, it is the duty of the commissioner:

(a) To notify the commissioners of all the other states, territories of the
United States, and the District of Columbia when action is taken in any of the
following matters against a member insurer:

(I) Revocation of license;

(II) Suspension of license; or

(III) Issuance of a formal order that the member insurer restrict its premium
writing, obtain additional contributions to surplus, withdraw from the state, reinsure
all or any part of its business, or increase capital, surplus, or any other account for
the security of owners, certificate holders, enrollees, or creditors. The
commissioner shall mail the notice to all commissioners within thirty days following
the action taken or the date on which the action occurs.

(b) To report to the board when the commissioner has taken any of the
actions set forth in paragraph (a) of this subsection (1) or has received a report from
any other commissioner indicating that such action has been taken in another state.
Such report to the board shall contain all significant details of the action taken or
the report received from another commissioner.

(c) To report to the board when the commissioner has reasonable cause to
believe from an examination, whether completed or in process, of a member insurer
that the member insurer may be an impaired or insolvent insurer;

(d) To furnish to the board the NAIC insurance regulatory information system
ratios and listings of companies not included in the ratios developed by the NAIC,
and the board may use the information contained therein in carrying out its duties
and responsibilities under this section. Such report and the information contained
therein shall be kept confidential by the board until such time as made public by the
commissioner or other lawful authority.

(2) The commissioner may seek the advice and recommendations of the
board concerning any matter affecting the commissioner's duties and
responsibilities regarding the financial condition of member insurers and companies
seeking admission to transact insurance or health maintenance organization
business in this state.

(3) Upon the commissioner's request, the board shall report and make
recommendations to the commissioner upon any matter germane to the solvency or
liquidation of any member insurer or germane to the solvency of any company
seeking to do insurance or health maintenance organization business in this state.
The reports and recommendations are not public documents.

(4) The board of directors may, upon a majority vote, notify the commissioner
of any information indicating that a member insurer may be impaired or insolvent.

(5) Repealed.

(6) The board may make recommendations to the commissioner for the
detection and prevention of member insurer insolvencies.

(7) Repealed.

Legislative History

Source: L. 91: Entire article added, p. 1274, � 1, effective July 1. L. 2000: (3), (4), (5), (6), and (7) amended, p. 1023, � 6, effective July 1. L. 2013: (1)(c) and (4) amended and (5) and (7) repealed, (SB 13-032), ch. 34, p. 97, � 8, effective March 15. L. 2023: IP(1), (1)(a)(III), (1)(c), (2), (3), and (6) amended, (HB 23-1303), ch. 195, p. 992, � 12, effective May 15.