§ 11-41-117.5 — Insurance of obligations

Colorado § 11-41-117.5

• Jurisdiction: Colorado
• Title 11: Financial
• Art.: Organization and Powers

Text

(1) A savings and loan association
shall obtain and maintain insurance of its obligations, including accounts, with the
federal deposit insurance corporation or its successor.

(2) (a) An association is further authorized to obtain and maintain insurance
of any obligations, including accounts, or portions thereof not otherwise insured
pursuant to subsection (1) of this section, with any federal agency, with any state
agency, or with any other insurer meeting the requirements of paragraph (b) of this
subsection (2).

(b) Any insurer insuring obligations pursuant to paragraph (a) of this
subsection (2), other than the federal deposit insurance corporation or its successor
shall be certified by the commissioner as having met the following:

(I) The contract of insurance contemplated is written upon substantially the
same basis as to form, coverage, maturity, voluntary and involuntary termination,
and other provisions as the insurance contract provided at that time by the federal
deposit insurance corporation or its successor and complies with such further
requirements for protection as the commissioner may promulgate by rule.

(II) The insurer has a net worth or, in the case of a governmental or
statutorily authorized entity, reserves reasonably commensurate with the risks
underwritten.

(III) The insurer, if a nongovernmental entity, is authorized to do business in
this state as an insurer or is otherwise authorized by law to insure obligations.

(3) Within twenty days after June 30 and December 31 of each year, each
insurer certified pursuant to paragraph (b) of subsection (2) of this section shall file
with the commissioner a report for the preceding six months showing its financial
condition. Said report shall be prepared, insofar as possible, in conformity with
generally accepted accounting principles.

(4) The commissioner or the commissioner's designee may investigate the
affairs and examine the books, accounts, records, and files of the insurer at
intervals that the commissioner deems prudent, but not less than once a year, and
have free access for such purposes. Costs of investigations and examinations shall
be paid by the insurer. If any investigation or examination reveals that the insurer is
not conducting its affairs in accordance with this section or that the insurer is not
actuarially sound or is impaired and may be unable to fulfill its obligations, the
commissioner may exercise any powers available under article 44 of this title 11
until compliance is restored or the impairment is terminated.

(5) The commissioner and the insurer may exchange information regarding
an insured savings and loan association.

(6) The commissioner shall determine as of June 30 each year the cost of
supervision of the insurer and shall assess such cost against the insurer. The
assessment shall be paid on or before September 30 following assessment.

Legislative History

Source: L. 83: Entire section added, p. 497, � 1, effective May 26. L. 84: (3) to (6) added, p. 378, � 3, effective May 11. L. 87: (1) amended, p. 466, � 2, effective July 1. L. 2004: (1), IP(2)(b), and (2)(b)(I) amended, p. 137, � 16, effective July 1. L. 2024: (4) amended, (HB 24-1381), ch. 350, p. 2370, � 24, effective August 7.