§ 10-3-532 — Recovery of premiums owed

Colorado § 10-3-532

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

Text

(1) (a) An agent, broker, premium
finance company, or any other person other than the insured that is responsible for
the payment of a premium shall be obligated to pay any unpaid premium for the full
policy term due the insurer at the time of the declaration of insolvency, whether
earned or unearned, as shown on the records of the insurer. The liquidator shall also
have the right to recover from such person any part of an unearned premium that
represents commission of such person. Credits or setoffs or both shall not be
allowed to an agent, broker, or premium finance company for any amounts
advanced to the insurer by the agent, broker, or premium finance company on
behalf of, but in the absence of a payment by, the insured.

(b) An insured shall be obligated to pay any unpaid earned premium due the
insurer at the time of the declaration of insolvency, as shown on the records of the
insurer.

(2) Upon satisfactory evidence of a violation of this section, the
commissioner may pursue either one or both of the following courses of action:

(a) Suspend, revoke, or refuse to renew the licenses of such offending party
or parties;

(b) Impose a penalty of not more than one thousand dollars for each and
every act in violation of this section by said party or parties.

(3) Before the commissioner takes any action set forth in subsection (2) of
this section, the commissioner shall give written notice to the person, company,
association, or exchange accused of violating the law, stating specifically the
nature of the alleged violation and fixing a time and place, at least ten days
thereafter, when a hearing on the matter shall be held. After such hearing, or upon
failure of the accused to appear at such hearing the commissioner, if the
commissioner finds the accused committed any such violation, shall impose such
penalties under subsection (2) of this section as are deemed advisable.

(4) When the commissioner takes action in any or all of the ways set out in
subsection (2) of this section, the party aggrieved may appeal from said action to
the district court in and for the city and county of Denver.

Legislative History

Source: L. 92: Entire part R&RE, p. 1466, � 14, effective July 1.