§ 10-3-811 — Criminal proceedings - civil penalties - definition

Colorado § 10-3-811

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

Text

(1) Whenever it
appears to the commissioner that an insurer or a director, officer, employee, or
agent thereof has committed a willful violation of this part 8, the commissioner may
cause criminal proceedings to be instituted in the district court for the county in
which the principal office of the insurer is located or, if such insurer has no such
office in this state, in the district court for the city and county of Denver against
such insurer or the insurer's responsible director, officer, employee, or agent. An
insurer or individual that willfully violates this part 8 commits a class 6 felony and
shall be punished as provided in section 18-1.3-401, C.R.S.

(2) (a) An insurer or an insurer's director, officer, employee, or agent that
fails, without just cause, to file any registration statement, amendment, or notice of
shareholder distribution as required in this part 8 may be required, after notice and
hearing, to pay a civil penalty of not more than five thousand dollars for each
violation. Each violation is a separate offense. The commissioner shall issue an
order setting forth the amount of the civil penalty, which amount must be based on
the alleged violator's history of previous violations, the good faith of the alleged
violator in attempting to achieve rapid compliance after notification of the violation,
the gravity and willfulness of the violation, the potential deterrent effect of the civil
penalty, and such other considerations as may be specified by the commissioner.
The commissioner may compromise, mitigate, or remit any such civil penalty.

(b) For purposes of this subsection (2), civil penalty means any monetary
penalty levied against an insurer or an insurer's director, officer, employee, or agent
because of a violation of this part 8. Civil penalty does not include any criminal
penalty levied under subsection (1) of this section.

(c) The commissioner shall transmit all civil penalties collected pursuant to
this subsection (2) to the state treasurer, who shall credit them to the general fund.

Legislative History

Source: L. 2014: Entire part R&RE, (SB 14-152), ch. 312, p. 1351, � 2, effective July 1.