§ 10-4-508.5 — Aggregate liability of association

Colorado § 10-4-508.5

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

Text

(1) (a) Notwithstanding any
other provisions of this part 5, except in the case of a claim for benefits under
workers' compensation coverage, any obligation of the association to any and all
persons shall cease when ten million dollars shall have been paid in the aggregate
by the association and any one or more associations similar to the association of
any other state or states or any property/casualty insurance security fund that
obtains contributions from insurers on a pre-insolvency basis, to or on behalf of any
insured and its affiliates on covered claims or allowed claims arising under the
policy or policies of any one insolvent insurer.

(b) For purposes of this section, the term affiliate shall mean a person who
directly or indirectly, through one or more intermediaries, controls, is controlled by,
or is under common control with another person.

(2) If the association determines that there may be more than one claimant
having a covered claim or allowed claim against the association or any associations
similar to the association or any property/casualty insurance security fund in other
states, under the policy or policies of any one insolvent insurer, the association may
establish a plan to allocate amounts payable by the association in such manner as
the association in its discretion deems equitable.

Legislative History

Source: L. 99: Entire section added, p. 87, � 3, effective August 4.