(1)Public entities may cooperate with one another to form a self-insurance pool to
provide all or part of the insurance coverage authorized by this article or by section
29-5-111, C.R.S., for the cooperating public entities. Any such self-insurance pool
may provide such coverage by the methods authorized in sections 24-10-115 (2) and
24-10-116 (2), by any different methods if approved by the commissioner of
insurance, or by any combination thereof. Any such insurance pool shall be formed
pursuant to the provisions of part 2 of article 1 of title 29, C.R.S. The provisions of
articles 10.5 and 47 of title 11, C.R.S., shall apply to moneys of such self-insurance
pool.
(2)Any self-insurance pool authorized by subsection (1) of this section shall
not be construed to be an insuranc
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(1)
Public entities may cooperate with one another to form a self-insurance pool to
provide all or part of the insurance coverage authorized by this article or by section
29-5-111, C.R.S., for the cooperating public entities. Any such self-insurance pool
may provide such coverage by the methods authorized in sections 24-10-115 (2) and
24-10-116 (2), by any different methods if approved by the commissioner of
insurance, or by any combination thereof. Any such insurance pool shall be formed
pursuant to the provisions of part 2 of article 1 of title 29, C.R.S. The provisions of
articles 10.5 and 47 of title 11, C.R.S., shall apply to moneys of such self-insurance
pool.
(2) Any self-insurance pool authorized by subsection (1) of this section shall
not be construed to be an insurance company nor otherwise subject to the laws of
this state regulating insurance or insurance companies; except that the pool shall
comply with the applicable provisions of sections 10-1-203 and 10-1-204 (1) to (5).
(3) Prior to the formation of a self-insurance pool, there shall be submitted to
the commissioner of insurance a complete written proposal of the pool's operation,
including, but not limited to, the administration, claims adjusting, membership, and
capitalization of the pool. The commissioner shall review the proposal within thirty
days after receipt to assure that proper insurance techniques and procedures are
included in the proposal. After such review, the commissioner shall have the right to
approve or disapprove the proposal. If the commissioner approves the proposal, he
shall issue a certificate of authority. The costs of such review shall be paid by the
public entities desiring to form such a pool. Any such payment received by the
commissioner is hereby appropriated to the division of insurance in addition to any
other funds appropriated for its normal operation.
(4) Each self-insurance pool for public entities created in this state shall file,
with the commissioner of insurance on or before March 30 of each year, a written
report in a form prescribed by the commissioner, signed and verified by its chief
executive officer as to its condition. Such report shall include a detailed statement
of assets and liabilities, the amount and character of the business transacted, and
the moneys reserved and expended during the year.
(5) The commissioner of insurance, or any person authorized by him, shall
conduct an insurance examination at least once a year to determine that proper
underwriting techniques and sound funding, loss reserves, and claims procedures
are being followed. This examination shall be paid for by the self-insurance pool out
of its funds at the same rate as provided for foreign insurance companies under
section 10-1-204 (9), C.R.S.
(6) (a) The certificate of authority issued to a public entity under this section
may be revoked or suspended by the commissioner of insurance for any of the
following reasons:
(I) Insolvency or impairment;
(II) Refusal or failure to submit an annual report as required by subsection (4)
of this section;
(III) Failure to comply with the provisions of its own ordinances, resolutions,
contracts, or other conditions relating to the self-insurance pool;
(IV) Failure to submit to examination or any legal obligation relative thereto;
(V) Refusal to pay the cost of examination as required by subsection (5) of
this section;
(VI) Use of methods which, although not otherwise specifically proscribed by
law, nevertheless render the operation of the self-insurance pool hazardous, or its
condition unsound, to the public;
(VII) Failure to otherwise comply with the law of this state, if such failure
renders the operation of the self-insurance pool hazardous to the public.
(b) If the commissioner of insurance finds upon examination, hearing, or
other evidence that any participating public entity has committed any of the acts
specified in paragraph (a) of this subsection (6) or any act otherwise prohibited in
this section, the commissioner may suspend or revoke such certificate of authority
if he deems it in the best interest of the public. Notice of any revocation shall be
published in one or more daily newspapers in Denver which have a general state
circulation. Before suspending or revoking any certificate of authority of a public
entity, the commissioner shall grant the public entity fifteen days in which to show
cause why such action should not be taken.
(7) Any public entity pool formed under this article and under article 13 of
title 29, C.R.S., and the members thereof, may combine and commingle all funds
appropriated by the members and received by the pool for liability or property
insurance or self-insurance or for other purposes of the pool.
(8) (a) Any self-insurance pool organized pursuant to this section may invest
in securities meeting the investment requirements established in part 6 of article
75 of this title and may also invest in membership claim deductibles and in any
other security or other investment authorized for such pools by the commissioner of
insurance.
(b) Any public entity which is a member of a self-insurance pool which is
organized pursuant to this section or any instrumentality formed by two or more of
such members may invest in subordinated debentures issued by such self-insurance pool.
(9) In addition to liability coverage pursuant to subsection (1) of this section
and property coverage pursuant to section 29-13-102, a self-insurance pool
authorized by subsection (1) of this section may provide workers' compensation
coverage pursuant to section 8-44-204.