Colorado § 10-20-112 - Prevention of insolvencies.

§ 10-20-112. Prevention of insolvencies.

(1) To aid in the detection and prevention of member insurer insolvencies, it is the duty of the commissioner:

(a) To notify the commissioners of all the other states, territories of the United States, and the District of Columbia when action is taken in any of the following matters against a member insurer:

(I) Revocation of license;

(II) Suspension of license; or

(III) Issuance of a formal order that the member insurer restrict its premium writing, obtain additional contributions to surplus, withdraw from the state, reinsure all or any part of its business, or increase capital, surplus, or any other account for the security of owners, certificate holders, enrollees, or creditors. The commissioner shall mail the notice to all commissioners within thirty days following the action taken or the date on which the action occurs.

(b) To report to the board when the commissioner has taken any of the actions set forth in paragraph (a) of this subsection (1) or has received a report from any other commissioner indicating that such action has been taken in another state. Such report to the board shall contain all significant details of the action taken or the report received from another commissioner.

(c) To report to the board when the commissioner has reasonable cause to believe from an examination, whether completed or in process, of a member insurer that the member insurer may be an impaired or insolvent insurer;

(d) To furnish to the board the NAIC insurance regulatory information system ratios and listings of companies not included in the ratios developed by the NAIC, and the board may use the information contained therein in carrying out its duties and responsibilities under this section. Such report and the information contained therein shall be kept confidential by the board until such time as made public by the commissioner or other lawful authority.

(2) The commissioner may seek the advice and recommendations of the board concerning any matter affecting the commissioner's duties and responsibilities regarding the financial condition of member insurers and companies seeking admission to transact insurance or health maintenance organization business in this state.

(3) Upon the commissioner's request, the board shall report and make recommendations to the commissioner upon any matter germane to the solvency or liquidation of any member insurer or germane to the solvency of any company seeking to do insurance or health maintenance organization business in this state. The reports and recommendations are not public documents.

(4) The board of directors may, upon a majority vote, notify the commissioner of any information indicating that a member insurer may be impaired or insolvent.

(5) Repealed.

(6) The board may make recommendations to the commissioner for the detection and prevention of member insurer insolvencies.

(7) Repealed.

Source: L. 91: Entire article added, p. 1274, § 1, effective July 1. L. 2000: (3), (4), (5), (6), and (7) amended, p. 1023, § 6, effective July 1. L. 2013: (1)(c) and (4) amended and (5) and (7) repealed, (SB 13-032), ch. 34, p. 97, § 8, effective March 15. L. 2023: IP(1), (1)(a)(III), (1)(c), (2), (3), and (6) amended, (HB 23-1303), ch. 195, p. 992, § 12, effective May 15.