Colorado § 10-3-705 - Rules - definitions.

§ 10-3-705. Rules - definitions.

(1) The commissioner may adopt rules implementing this part 7.

(2) (a) The commissioner may adopt rules applicable to reinsurance arrangements described in this subsection (2)(a). Rules adopted pursuant to this subsection (2) must apply only to reinsurance relating to:

(I) Life insurance policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits;

(II) Universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period;

(III) Variable annuities with guaranteed death or living benefits;

(IV) Long-term care insurance policies; or

(V) Other life and health insurance and annuity products as to which the NAIC adopts model regulatory requirements with respect to credit for reinsurance.

(b) A rule adopted pursuant to subsection (2)(a)(I) or (2)(a)(II) of this section must apply to any treaty containing:

(I) Policies issued on or after January 1, 2015; or

(II) Policies issued prior to January 1, 2015, if risk pertaining to pre-2015 policies is ceded in connection with the treaty, in whole or in part, on or after January 1, 2015.

(c) A rule adopted pursuant this subsection (2) may require the ceding insurer, in calculating the amounts or forms of security required to be held under rules promulgated under this subsection (2), to use the valuation manual adopted by the NAIC under the NAIC standard valuation law, including all amendments adopted by the NAIC and in effect on the date on which the calculation is made, to the extent applicable.

(d) A rule adopted pursuant to this subsection (2) does not apply to cessions to an assuming insurer that:

(I) (A) Meets the conditions set forth in section 10-3-702 (6.5);

(B) Is certified in this state; or

(C) Maintains at least two hundred fifty million dollars in capital and surplus when calculated in accordance with the most recent NAIC accounting practices and procedures manual, as amended by the NAIC, excluding the impact of any permitted or prescribed practices; and

(II) Is licensed:

(A) In at least twenty-six states; or

(B) In at least ten states and licensed or accredited in a total of at least thirty-five states.

(e) The authority to adopt rules pursuant to this subsection (2) does not limit the commissioner's general authority to adopt rules pursuant to subsection (1) of this section.

(f) As used in this subsection (2), "NAIC" means the National Association of Insurance Commissioners.

Source: L. 2014: Entire part R&RE, (HB 14-1315), ch. 295, p. 1212, § 1, effective January 1, 2015. L. 2024: Entire section amended, (HB 24-1321), ch. 252, p. 1670, § 5, effective January 1, 2025.