Colorado § 10-20-113 Credits for assessments paid - tax offsets

Colorado Statutes

§ 10-20-113 — Credits for assessments paid - tax offsets

Colorado § 10-20-113

Title 10Insurance

Art.Life and Health Insurance

This text of Colorado § 10-20-113 (Credits for assessments paid - tax offsets) is published on Counsel Stack Legal Research, covering Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Colo. Rev. Stat. § 10-20-113 (2026).

Text

(1)(a) A member insurer may offset against its premium tax liability to this state that amount of its class B assessment described in section 10-20-109 that was assessed for the association's life and annuity accounts pursuant to section 10-20-106 to the extent of twenty percent of the amount of such assessment for each of the first, second, third, fourth, and fifth calendar years following the year in which such assessment was paid.

(b)To the extent the offsets specified in paragraph (a) of this subsection (1) exceed the member insurer's premium tax liability, they may be carried forward to offset premium tax liabilities in future years. In the event a member insurer should cease doing business, all uncredited assessments may be credited against its premium tax liability for

Free access — add to your briefcase to read the full text and ask questions with AI

(1) (a) A member
insurer may offset against its premium tax liability to this state that amount of its
class B assessment described in section 10-20-109 that was assessed for the
association's life and annuity accounts pursuant to section 10-20-106 to the extent
of twenty percent of the amount of such assessment for each of the first, second,
third, fourth, and fifth calendar years following the year in which such assessment
was paid.

(b) To the extent the offsets specified in paragraph (a) of this subsection (1)
exceed the member insurer's premium tax liability, they may be carried forward to
offset premium tax liabilities in future years. In the event a member insurer should
cease doing business, all uncredited assessments may be credited against its
premium tax liability for the year it ceases doing business.

(c) In no event shall the total amount of all such offsets for all member
insurers exceed four million dollars in any year. The association shall prorate the
amount of such offset among all member insurers if the total amount of offset
would otherwise exceed four million dollars in any such year and shall notify each
insurer of the maximum amount of offset allowable for that year and the amount of
the excess offset, if any, that may be carried forward to future years.

(d) (I) Each member insurer writing health insurance or health maintenance
organization policies or contracts may recoup over a reasonable length of time a
sum reasonably calculated to recoup the assessments paid by the member insurer
under this article 20 by imposing a surcharge on premiums charged for health
insurance or health maintenance organization policies or contracts to which this
article 20 applies. Amounts recouped are not premiums for any other purpose,
including the computation of gross premium tax or an agent's commission.

(II) A member insurer that imposes a surcharge under subsection (1)(d)(I) of
this section shall include the amount of the surcharge as part of the member
insurer's rate filing pursuant to section 10-16-107 (1). The member insurer must
show the surcharge in the rate filing as a separate component of the rate and shall
include supporting documentation.

(III) A member insurer that collects surcharges in excess of assessments
paid pursuant to this article 20 for an insolvent insurer shall remit the excess to the
association as an additional assessment within one hundred twenty days after the
end of the collection period as determined by the association. The association shall
apply the excess amount to reduce future assessments for that member insurer in
the appropriate category.

(IV) (Deleted by amendment, L. 2023.)

(2) Any sums which are acquired by refund pursuant to section 10-20-109 (6)
from the association by member insurers, and which have theretofore been offset
against premium taxes as provided in subsection (1) of this section, shall be paid by
such insurers to this state in such manner as the tax authorities may require. The
association shall notify the commissioner that such payments have been made.

(3) (a) The purpose of the credit authorized in subsection (1)(a) of this section
is to offset the cost for an insurer paying required assessments into the life and
health insurance protection association created in section 10-20-106 (1).

(b) The effectiveness of the credit authorized in subsection (1)(a) of this
section is measured by how many eligible insurers claim the credit and the amount
claimed relative to payments into the life and health insurance protection
association created in section 10-20-106 (1).

Legislative History

Source: L. 91: Entire article added, p. 1276, � 1, effective July 1. L. 92: (1)(d)(II) amended, p. 1726, � 12, effective July 1. L. 2000: (1)(a) and (1)(c) amended, p. 1023, � 7, effective July 1. L. 2023: (1)(d) amended, (HB 23-1303), ch. 195, p. 992, � 13, effective May 15. L. 2025: (3) added, (SB 25-026), ch. 362, p. 1964, � 4, effective August 6.