Colorado § 10-3-515 Termination of rehabilitation

Colorado Statutes

§ 10-3-515 — Termination of rehabilitation

Colorado § 10-3-515

Title 10Insurance

Art.Regulation of Insurance Companies

This text of Colorado § 10-3-515 (Termination of rehabilitation) 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. § 10-3-515 (2026).

Text

(1)Whenever the commissioner believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders, or the public, or would be futile, the commissioner may petition the district court in and for the city and county of Denver for an order of liquidation. A petition under this subsection (1) shall have the same effect as a petition under section 10-3-516. The court shall permit the directors of the insurer to take such actions as are reasonably necessary to defend against the petition and may order payment from the estate of the insurer of such costs and other expenses of defense as justice may require.

(2)The protection of the interests of insureds, claimants, and the public requires the timely performance of all insurance

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(1) Whenever the commissioner
believes further attempts to rehabilitate an insurer would substantially increase the
risk of loss to creditors, policyholders, or the public, or would be futile, the
commissioner may petition the district court in and for the city and county of
Denver for an order of liquidation. A petition under this subsection (1) shall have the
same effect as a petition under section 10-3-516. The court shall permit the
directors of the insurer to take such actions as are reasonably necessary to defend
against the petition and may order payment from the estate of the insurer of such
costs and other expenses of defense as justice may require.

(2) The protection of the interests of insureds, claimants, and the public
requires the timely performance of all insurance policy obligations. If the payment
of an insurer's policy obligations is suspended in substantial part for a period of six
months at any time after the appointment of the rehabilitator and the rehabilitator
has not filed an application for approval of a plan under section 10-3-513 (5), the
rehabilitator shall petition the court for an order of liquidation on grounds of
insolvency.

(3) The rehabilitator may at any time petition the district court in and for the
city and county of Denver for an order terminating rehabilitation of an insurer. The
court shall also permit the directors of the insurer to petition the court for an order
terminating rehabilitation of the insurer and may order payment from the estate of
the insurer of such costs and other expenses of such petition as justice may require.
If the court finds that rehabilitation has been accomplished and that grounds for
rehabilitation under section 10-3-511 no longer exist, it shall order that the insurer
be restored to possession of its property and the control of the business. The court
may also make such a finding and issue such an order at any time upon its own
motion.