Colorado § 10-3-201 Cash capital - guaranty fund - deposit

Colorado Statutes

§ 10-3-201 — Cash capital - guaranty fund - deposit

Colorado § 10-3-201

Title 10Insurance

Art.Regulation of Insurance Companies

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Bluebook

Colo. Rev. Stat. § 10-3-201 (2026).

Text

(1)(a) (I) to (IV) Repealed.

(V)No insurance company, issued a certificate of authority on or after July 1, 1995, shall be permitted to do any business in this state, unless, in addition to the other requirements of law, it possesses the minimum capital or guaranty fund and an accumulated surplus in the form of cash or marketable securities which combined are at least equal to: TYPE OF COMPANYTOTAL CAPITAL OR GUARANTY FUND PLUS SURPLUS Life ...................................$1,500,000.00 Fire ...................................1,500,000.00 Casualty ............................1,500,000.00 Multiple Line ....................2,000,000.00 Title Insurance ..................750,000.00

(b)To avoid situations where an insurer's transactions would create undue financial risks to

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(1) (a) (I) to (IV) Repealed.

(V) No insurance company, issued a certificate of authority on or after July 1,
1995, shall be permitted to do any business in this state, unless, in addition to the
other requirements of law, it possesses the minimum capital or guaranty fund and
an accumulated surplus in the form of cash or marketable securities which
combined are at least equal to:

TYPE OF COMPANYTOTAL CAPITAL

OR GUARANTY FUND

PLUS SURPLUS

Life ...................................$1,500,000.00

Fire ...................................1,500,000.00

Casualty ............................1,500,000.00

Multiple Line ....................2,000,000.00

Title Insurance ..................750,000.00

(b) To avoid situations where an insurer's transactions would create undue
financial risks to its enrollees, subscribers, or policyholders or to the people of this
state, the regulations specified in this paragraph (b) are authorized. The
commissioner may by regulation establish standards consistent with those of the
national association of insurance commissioners which require any insurer to
maintain a greater minimum surplus level than the specific dollar minimums
established by paragraph (a) of this subsection (1). Such minimum surplus level
shall reflect the type, volume, and nature of the insurance business being
transacted and the type of entity for which the surplus levels are being established.
Such regulation may additionally require the submission of an opinion by a qualified
actuary which states whether or not the surplus level of the entity is sufficient for
the authority requested.

(c) Companies already licensed on July 1, 1991, may continue to transact
business and shall have until December 31, 1992, to increase their total capital or
guaranty fund and surplus or file a plan with the commissioner. The commissioner
may, upon showing of adequate justification by the company, extend the date for
the company to attain the new levels specified in paragraph (a) of this subsection
(1), or waive or reduce such new levels.

(d) An insurance company subject to this section shall increase its capital
and surplus to those limits set forth in paragraph (a) of this subsection (1) within
thirty days after any change of control of the insurance company. Any extension
granted pursuant to paragraph (c) of this subsection (1) shall be automatically
rescinded in the event of such a change of control. The insurance company is not
required to increase its capital and surplus if the transfer of ownership occurs
because of death and the ownership is transferred solely to one or more natural
persons, each of whom would be an heir of the decedent if the decedent had died
intestate.

(2) The cash or securities representing the minimum capital or guaranty fund
and surplus required by paragraph (a) of subsection (1) of this section shall be
deposited, in the case of domestic companies, with the commissioner in the manner
provided by law and, in the case of foreign or alien companies, with the
commissioner or with the duly authorized officer of some other state of the United
States; except that the guaranty fund of mutual companies shall be construed to
include deposits held for the benefit of policyholders as provided in this title
(except article 15) and article 14 of title 24, C.R.S.

(3) The deposit shall be held by the commissioner for the benefit of all
policyholders wherever located. For a foreign or alien insurer to be allowed credit
for deposits in other jurisdictions, such deposits must be held for the benefit of all
policyholders wherever located and not solely or with preference for those in the
depository jurisdiction.

Legislative History

Source: L. 13: p. 340, � 25. C.L. � 2495. CSA: C. 87, � 23. L. 51: p. 466, � 1. CRS 53: � 72-1-36. L. 63: p. 570, � 1. C.R.S. 1963: � 72-1-36. L. 69: p. 527, � 2. L. 79: (1)(c) and (1)(d) added, p. 359, � 4, effective July 1. L. 91: (1) and (2) R&RE, p. 1244, � 6, effective July 1. L. 92: (1)(b) amended, p. 1766, � 2, effective March 20; (2) amended, p. 1545, � 34, effective May 20. L. 2004: (2) amended, p. 899, � 12, effective May 21. L. 2012: (2) amended, (HB 12-1266), ch. 280, p. 1504, � 25, effective July 1.