Colorado § 10-6-116 Capital and surplus requirements

Colorado Statutes

§ 10-6-116 — Capital and surplus requirements

Colorado·Title 10 Insurance·Art. Captive Insurance Companies

(1)No captive insurance company issued a certificate of authority shall be permitted to do any business in this state unless it maintains total capital and surplus of not less than five hundred thousand dollars. (1.5) Upon a written finding by the commissioner that the approved plan of operation or the operational results of the captive insurance company require either additional capital or a larger surplus than required by this section, the commissioner may require that additional capital or surplus, or both, be obtained. Additional capital or surplus may be tendered in the form of an irrevocable letter of credit as set forth in subsection (2) of this section.

(2)Securities acceptable to the commissioner in the amount of three hundred thousand dollars, or such greater amount

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(1) No captive insurance
company issued a certificate of authority shall be permitted to do any business in
this state unless it maintains total capital and surplus of not less than five hundred
thousand dollars.

(1.5) Upon a written finding by the commissioner that the approved plan of
operation or the operational results of the captive insurance company require either
additional capital or a larger surplus than required by this section, the
commissioner may require that additional capital or surplus, or both, be obtained.
Additional capital or surplus may be tendered in the form of an irrevocable letter of
credit as set forth in subsection (2) of this section.

(2) Securities acceptable to the commissioner in the amount of three
hundred thousand dollars, or such greater amount as determined by the
commissioner, shall be held by the commissioner or under the joint control of the
commissioner and the captive insurance company. The commissioner shall accept
an irrevocable letter of credit, in a form acceptable to the commissioner, issued or
confirmed by a qualified United States financial institution as defined in section 10-1-102 (17) on behalf of a captive insurance company in lieu of securities. All
securities or letters of credit jointly held shall be the sole property of such captive
insurance company and shall be free and clear of any claim or encumbrance.

(3) Jointly held securities or letters of credit, wherever located, shall be
deemed to be held for the benefit of all captive insurance company policyholders.

(4) The commissioner shall release funds held under joint control upon a
showing satisfactory to the commissioner that all debts, obligations, and liabilities
of the captive insurance company have been paid and discharged, or adequate
provisions for payment and discharge have been made therefor, and the captive
insurance company's original certificate of authority has been returned to the
commissioner.

Colorado § 10-6-116 (Capital and surplus requirements) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

Source: L. 72: p. 434, � 1. C.R.S. 1963: � 72-36-16. L. 87: (1) amended, p. 437, � 5, effective May 22. L. 89: (2) amended, p. 465, � 10, effective April 15. L. 92: (2) amended, p. 1562, � 71, effective May 20. L. 94: Entire section amended, p. 547, � 10, effective April 6. L. 2003: (2) amended, p. 617, � 15, effective July 1.