Colorado § 10-1-203 - Authority, scope, and scheduling of examinations.

§ 10-1-203. Authority, scope, and scheduling of examinations.

(1) The commissioner or the commissioner's designee may conduct an examination of any company as often as the commissioner, in the commissioner's sole discretion, deems appropriate but shall, at a minimum, conduct a formal financial examination of every insurer licensed in this state not less frequently than once every five years; except that this does not include eligible nonadmitted insurers regulated in accordance with article 5 of this title 10. In scheduling financial examinations and in determining their nature, scope, and frequency, the commissioner shall consider matters such as the results of financial statement analyses and ratios, changes in management or ownership, actuarial opinions, reports of independent certified public accountants, and other criteria as set forth in the most recent available edition of the examiners' handbook adopted by the national association of insurance commissioners.

(2) For purposes of completing an examination of any company under this part 2, the commissioner may examine or investigate any person or the business of any person insofar as such examination or investigation is, in the sole discretion of the commissioner, necessary or material to the examination of the company.

(3) In lieu of a financial examination under this part 2 of any foreign or alien insurer licensed in this state, the commissioner may accept an examination report on the company as prepared by the insurance department for the company's state of domicile or port-of-entry state; except that such reports may only be accepted if:

(a) The insurance department was, at the time of the examination, accredited under the national association of insurance commissioners' financial regulation standards and accreditation program; or

(b) The examination is performed under the supervision of an accredited insurance department or with the participation of one or more examiners who are employed by such an accredited state insurance department and who, after a review of the examination work papers and report, state under oath that the examination was performed in a manner consistent with the standards and procedures required by the examiners' insurance department.

Source: L. 2003: Entire article RC&RE, p. 606, § 1, effective July 1. L. 2012: (1) amended, (HB 12-1215), ch. 104, p. 354, § 7, effective August 8. L. 2017: (1) amended, (HB 17-1231), ch. 284, p. 1555, § 3, effective January 1, 2018.

Editor's note: This section is similar to former § 10-1-203 as it existed prior to 2002.

ANNOTATION

Annotator's note. Since § 10-1-203 is similar to § 10-1-203 as it existed prior to the 2002 repeal of article 1 of title 10, a relevant case construing that provision has been included in the annotations to this section.

Public entity self-insurance pools such as the Colorado intergovernmental risk sharing agency are not to be construed to be insurance companies and are not otherwise subject to state laws regulating insurance companies except that they are subject to this section and § 10-1-204 (1) to (5) and (10). City of Arvada v. Colo. Intergovernmental Risk Sharing Agency, 988 P.2d 184 (Colo. App. 1999), aff'd, 19 P.3d 10 (Colo. 2001).