§ 10-4-401 — Purpose - applicability

Colorado § 10-4-401

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Property and Casualty Insurance

Text

(1) The purpose of this part 4 is to
promote the public welfare by regulating insurance rates to the end that they not
be excessive, inadequate, or unfairly discriminatory, to prohibit price-fixing
agreements and other anticompetitive behavior by insurers, to promote price
competition among insurers, to provide rates that are responsive to competitive
market conditions, and to improve the availability and reliability of insurance. For
such purposes, the division of insurance of the department of regulatory agencies
and the head of the division, the commissioner of insurance, shall be charged with
the execution of this part 4.

(2) This part 4 shall apply to all kinds of insurance except:

(a) Reinsurance other than joint reinsurance as provided in section 10-4-411;

(b) Life insurance and annuities regulated under article 7 of this title;

(c) Sickness and accident insurance regulated under parts 1 and 2 of article
16 of this title;

(d) Nonprofit hospital and health services regulated under parts 1 and 3 of
article 16 of this title;

(e) Health maintenance organization services regulated under parts 1 and 4
of article 16 of this title;

(f) (Deleted by amendment, L. 2000, p. 465, � 3, effective August 2, 2000.)

(g) Surplus line insurance regulated under article 5 of this title.

(3) The kinds of insurance subject to this part 4 shall be divided into two
classes, as follows:

(a) Type I kinds of insurance, regulated by prior filing and approval of rating
information, which shall be subject to all provisions of this part 4 unless specifically
excluded by the terms of a section. The following kinds of insurance shall be
classified as type I:

(I) Workers' compensation and employer's liability incidental thereto for any
pure premium rate filed by a rating organization. With regard to a rate filing
submitted by a rating organization, the commissioner shall make available to the
public, in a manner deemed appropriate by the commissioner, the aggregate loss
and payroll data by class code that the rating organization submits with the rate
filing. Such data shall not be used for any commercial purpose.

(II) (Deleted by amendment, L. 2000, p. 465, � 3, effective August 2, 2000.)

(III) Assigned risk motor vehicle insurance;

(IV) and (V) Repealed.

(VI) Such other kinds of insurance as the commissioner shall order classified
as type I pursuant to the provisions of section 10-4-403 (5).

(b) Type II kinds of insurance, regulated by open competition between
insurers, including fire, casualty, inland marine, title, credit, workers' compensation
and employer's liability incidental thereto and written in connection therewith for
rates filed by insurers, and all other kinds of insurance that are subject to this part
4 and not specified in paragraph (a) of this subsection (3), including the expense
and profit components of workers' compensation insurance, which shall be subject
to all the provisions of this part 4 except for sections 10-4-405 and 10-4-406. Type
II insurers shall file rating data, as provided in section 10-4-403, with the
commissioner; except that credit life and credit accident and health insurers shall
file schedules of premium rates pursuant to sections 10-10-109 and 10-10-110. A rate
filing summary for a type II kind of insurance subject to this part 4, except for
workers' compensation insurance, shall be posted on the division's website in order
to provide notice to the public. The public notice shall include the rate standards
that apply pursuant to section 10-4-403 (1). Nothing in this section shall be
construed to limit the right of the public to inspect a rate filing and any supporting
information pursuant to part 2 of article 72 of title 24, C.R.S., or to impair the
commissioner's ability to review rates and determine that the rates are not
excessive, inadequate, or unfairly discriminatory.

(4) Except for type I kinds of insurance as defined in paragraph (a) of
subsection (3) of this section, prior approval of rates, schedules of rates, rating
plans, rating classifications and territories, rating rules, and rate manuals with the
commissioner, or his prior approval thereof, shall not be required. In lieu thereof, the
provisions of paragraph (b) of subsection (3) of this section and sections 10-4-413,
10-4-414, and 10-4-418 regarding the availability of such items, the review thereof,
and hearings and judicial review thereof are applicable.

(5) Rate filings for insurance subject to this part 4 shall be filed
electronically in a format made available by the division, unless exempted by rule
for an emergency situation as determined by the commissioner.

Legislative History

Source: L. 79: Entire part R&RE, p. 362, � 8, effective July 1. L. 81: (3)(a)(V) repealed and (3)(b) amended, pp. 563, 562, �� 3, 1, effective July 1. L. 86: (2)(g), (3)(b), and (4) amended, p. 579, � 2, effective July 1. L. 87: (2)(g) amended, p. 427, � 6, effective May 1; (3)(a)(IV) repealed, p. 439, � 10, effective May 22. L. 90: (3)(a)(I) amended, p. 558, � 15, effective July 1. L. 91: (3)(a)(I) and (3)(b) amended, p. 1194, � 1, effective April 11. L. 92: (2)(f) amended, p. 1557, � 56, effective May 20; (2)(d) and (2)(e) amended, p. 1724, � 7, effective July 1. L. 2000: (2)(f) and (3) amended, p. 465, � 3, effective August 2. L. 2006: (2)(c) amended, p. 1490, � 12, effective June 1. L. 2007: (3)(b) amended and (5) added, p. 2003, � 1, effective January 1, 2008. L. 2010: (3)(b) amended, (HB 10-1220), ch. 197, p. 854, � 17, effective July 1; (3)(a)(I) amended, (SB 10-112), ch. 52, p. 196, � 2, effective August 11.