Colorado § 10-4-404 - Rate administration.

§ 10-4-404. Rate administration.

(1) The commissioner shall promulgate rules and regulations which shall require each insurer to record and report its loss and expense experience and such other data, including reserves, as may be necessary to determine whether rates comply with the standards set forth in section 10-4-403. Every insurer or rating organization shall provide such information and in such form as the commissioner may require. No insurer shall be required to record or report its loss or expense experience on a classification basis that is inconsistent with the rating system used by it. The commissioner may designate one or more rating organizations or advisory organizations to assist him in gathering and in compiling such experience and data. No insurer shall be required to record or report its experience to a rating organization unless it is a member of such organization.

(2) (a) The commissioner may require that the annual report and any such supplemental report which contains information of a company's loss and loss adjustment reserves be accompanied by an opinion signed and sworn to by a qualified and independent actuary verifying that, within the nine months prior to the submission of the report, the actuary has conducted a review and analysis of the insurance company's loss and loss adjustment reserves and the reserves are computed in accordance with accepted loss reserving standards and are fairly stated in accordance with sound loss reserving principles.

(b) For purposes of the requirements of this section, a qualified actuary shall be an associate or fellow of the casualty actuarial society and shall be independent of the company whose reserves the actuary has reviewed and analyzed and which is submitting the sworn actuarial certificate.

(3) Any insurer who fails to comply with the terms of this section shall pay a civil penalty of ten thousand dollars and a fine of two hundred dollars for every day thereafter until the insurer complies with this section.

(4) It is the duty of the commissioner to maintain for at least six years by carrier all reports submitted by insurers pursuant to rules and regulations promulgated by the commissioner under this section. The commissioner shall consider these reports in determining the appropriateness of premium rates for various types of insurance in this state.

(5) In order to make the administration of rate regulatory laws uniform, the commissioner and every insurer and rating organization may exchange information and loss experience data.

(6) The commissioner shall promulgate regulations to effect rate reductions or credits for insureds who implement plans pursuant to article 14.5 of title 8, C.R.S.

(7) This section shall not apply to insurers providing coverage for exempt commercial policyholders, as defined pursuant to section 10-4-1402 and rules adopted by the commissioner pursuant to that section.

Source: L. 79: Entire part R&RE, p. 365, § 8, effective July 1. L. 81: (4) amended, p. 533, § 1, effective April 30. L. 86: (5), (6), and (7) added, p. 558, § 20, effective July 1. L. 89: (7) repealed, p. 442, § 27, effective July 1. L. 90: Entire section R&RE, p. 618, § 1, effective April 5; (6) RC&RE, p. 616, § 1, effective April 12. L. 97: (4) amended, p. 1477, § 21, effective June 3. L. 99: (7) added, p. 387, § 3, effective January 15, 2000.

Editor's note: (1) This section is similar to former § 10-4-314 as it existed prior to 1979.

(2) Subsection (6) was numbered as subsection (7) in HB 90-1212 but was renumbered on revision for proper placement in the section as repealed and reenacted by HB 90-1214.