§ 10-3-402 — Definitions

Colorado § 10-3-402

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Regulation of Insurance Companies

Text

All terms defined in section 10-1-102 shall have the
same meaning in this part 4. As used in this part 4, unless the context otherwise
requires:

(1) (Deleted by amendment, L. 92, p. 1425, � 6, effective July 1, 1992.)

(2) Delinquency means any act, omission, or condition, or combination
thereof, which is contrary to the applicable laws of this state or any other state,
including any regulation lawfully promulgated by the commissioner of insurance of
any state or any other person or state agency having supervision of the business of
insurance. It includes, but is not limited to, any such act, omission, or condition, or
combination thereof, committed or created by or under the direction or authority of
any insurance company or any officer or representative thereof. Specifically, it
includes any act, omission, or condition, or combination thereof, which, although not
otherwise proscribed by law, nevertheless renders the operation of the insurance
company hazardous to the public or its policyholders.

(3) Direct supervision means the institution of control of an insurance
company by order of the commissioner whereby one or more specifically
enumerated acts shall be required of the company by order of the commissioner, or
one or more specifically enumerated acts or decisions of the company shall not be
permitted without prior written approval of the commissioner. In addition, such term
includes the power to take all steps necessary to preserve, protect, and recover an
insurance company's assets as set forth in section 10-3-405 (2). It is a condition of
control beyond normal regulation by the division of insurance and beyond the
notifying of an insurance company of a determination of delinquency by the
commissioner and supplying the company a list of requirements to abate the
condition.

(4) Rehabilitation or to rehabilitate refers to the removal of an existing
delinquency and restoration of the company to a condition of compliance with the
law.

Legislative History

Source: L. 69: p. 545, � 3. C.R.S. 1963: � 72-29-3. L. 92: Entire section amended, p. 1425, � 6, effective July 1.