§ 10-7-613 — Penalties

Colorado § 10-7-613

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Life Insurance

Text

(1) In addition to the penalties and other enforcement
provisions of this part 6, if a person violates the provisions of this part 6 or any rule
implementing this part 6, the commissioner may seek an injunction in a court of
competent jurisdiction and may apply for temporary and permanent orders as the
commissioner determines are necessary to restrain the person from committing the
violation.

(2) A person damaged by the acts of a person in violation of this part 6 may
bring a civil action against the person committing the violation in a court of
competent jurisdiction.

(3) The commissioner may issue a cease-and-desist order to a person who
violates any provision of this part 6 or of any rule or order promulgated by, or
written agreement entered into with, the commissioner pursuant to this part 6.

(4) When the commissioner finds that an activity in violation of this part 6
presents an immediate danger to the public that requires an immediate final order,
the commissioner may issue an emergency cease-and-desist order reciting with
particularity the facts underlying the findings. The emergency cease-and-desist
order is effective immediately upon service of a copy of the order on the respondent
and remains effective for ninety days. If the commissioner begins nonemergency
cease-and-desist proceedings, the emergency cease-and-desist order remains
effective absent an order by a court of competent jurisdiction pursuant to the
State Administrative Procedure Act, article 4 of title 24, C.R.S.

(5) In addition to the penalties and other enforcement provisions of this part
6, a person who violates this part 6 is subject to civil penalties of up to ten thousand
dollars for each violation pursuant to an order of the commissioner. The
commissioner's order may require a person found to be in violation of this part 6 to
make restitution to a person aggrieved by violations of this part 6.

(6) (a) A person who violates a provision of this part 6 after the commissioner
has issued a cease-and-desist order to the person commits a class 2 misdemeanor
and, upon conviction, shall pay restitution to a person aggrieved by the violation.
Restitution shall be ordered in addition to a fine or imprisonment, but not instead of
a fine or imprisonment.

(b) A person who violates paragraph (a) of this subsection (6), upon
conviction, shall be sentenced based on the greater of the value of property,
services, or other benefits wrongfully obtained or attempted to be obtained, or the
aggregate economic loss suffered by any person as a result of the violation. A
person shall be fined not more than:

(I) One hundred thousand dollars or imprisoned for not more than twelve
months, or both, if the value of the viatical settlement contract is more than thirty-five thousand dollars;

(II) Twenty thousand dollars or imprisoned for not more than nine months, or
both, if the value of the viatical settlement contract is more than two thousand five
hundred dollars but not more than thirty-five thousand dollars;

(III) Ten thousand dollars or imprisoned for not more than six months, or
both, if the value of the viatical settlement contract is more than five hundred
dollars but not more than two thousand five hundred dollars; or

(IV) Three thousand dollars or imprisoned for not more than three months, or
both, if the value of the viatical settlement contract is five hundred dollars or less.

(c) In a prosecution under paragraph (a) of this subsection (6), the value of a
viatical settlement contract within a six-month period may be aggregated and the
defendant charged accordingly in applying the provisions of this section. If two or
more offenses are committed by the same person in two or more counties, the
accused may be prosecuted in a county in which one of the offenses was committed
for all of the offenses aggregated as provided by this section. The statutory
limitation period does not begin to run until the insurance company or law
enforcement agency is aware of the fraud, but the prosecution may not be
commenced later than seven years after the act has occurred.

Legislative History

Source: L. 2005: Entire part added, p. 1320, � 1, effective January 1, 2006.