This article shall be known and may be cited as the “Nonadmitted Insurance Act”. Source: L. 49: p. 474, § 22. CSA: C. 87, § 334. CRS 53: § 72-14-17. C.R.S. 1963: § 72-13-17. L. 95: Entire section amended, p. 491, § 6, effective May 16.
The general assembly finds and declares that disability, property, and casualty insurance transactions with nonadmitted insurers are so affected with a public interest as to require regulation, taxation, supervision, and control of such transactions and matters relating thereto, as provided in this article 5, in order to: Protect the insureds and claimants of this state […]
As used in this article 5, unless the context otherwise requires: “Affiliate” means, with respect to an insured, any entity that controls, is controlled by, or is under common control with the insured. “Affiliated group” means any group of entities that are all affiliated. “Broker” means a surplus lines producer duly licensed to export insurance […]
The provisions of this article controlling the placing of insurance with nonadmitted insurers shall not apply to reinsurance or, except as to subsection (2) of this section, to the following types of insurance when placed by licensed agents or brokers of this state: Insurance on vessels or crafts or their hulls or cargoes or on […]
A contract of insurance effectuated by a nonadmitted insurer in violation of the provisions of this article shall be voidable except at the instance of the insurer. Source: L. 49: p. 467, § 1. CSA: C. 87, § 318. CRS 53: § 72-14-1. C.R.S. 1963: § 72-13-1. L. 95: Entire section amended, p. 492, § […]
If certain insurance coverages cannot be procured from admitted insurers, such coverages, designated in this article as “surplus lines”, may be procured from nonadmitted insurers, subject to the following conditions: The insurance must be procured through a licensed broker. The full amount of insurance required shall not be procurable, after diligent effort has been made […]
Any broker exporting insurance under this article, at the request of any other licensed agent or broker, may accept an affidavit executed by such other agent or broker, in such form as may be prescribed or accepted by the commissioner, as evidence that such insurance was eligible for export under section 10-5-103. Except as the […]
Every insurance contract procured and delivered as a surplus line coverage pursuant to this article shall be initialed by or bear the name of the surplus line broker who procured it and shall have stamped upon it the following: “This contract is delivered as a surplus line coverage under the ‘Nonadmitted Insurance Act’. The insurer […]
Insurance contracts procured as surplus line coverage from nonadmitted insurers in accordance with this article shall be fully valid and enforceable as to all parties and shall be given recognition in all matters and respects to the same effect as like contracts issued by admitted insurers. Source: L. 49: p. 468, § 4. CSA: C. […]
The commissioner may, by rule, declare eligible for export generally, notwithstanding the provisions of section 10-5-103 (1)(b) and (1)(c), any class of insurance coverage or risk for which the commissioner finds that there is no reasonable or adequate market among insurers licensed in this state. For the purposes of this section, the diligent effort requirements […]
A licensed surplus line broker may accept and place surplus line business for any insurance producer licensed in this state for the kind of insurance involved and may compensate such agent or broker therefor. Source: L. 49: p. 468, § 6. CSA: C. 87, § 323. CRS 53: § 72-14-6. C.R.S. 1963: § 72-13-6. L. […]
A broker shall not place any coverage with a nonadmitted insurer unless, at the time of placement, the nonadmitted insurer meets all applicable eligibility requirements contained in the federal act or is an insurance exchange, Lloyds plan, or group of incorporated insurers under common administration that has been approved by the commissioner and is included […]
Each licensed surplus line broker shall keep in the broker’s office a full and true record of each surplus line contract procured by the broker, including a copy of the daily report, if any, showing such of the following items as may be applicable: Amount of the insurance; gross premiums charged; return premium paid, if […]
Each surplus line broker and every person that enters into an independent procurement for nonadmitted insurance shall file with the commissioner a verified statement of all insurance transacted by the broker or other person during the preceding reporting period. The commissioner shall, by rule, determine the reporting period. The statement must be on forms as […]
Each surplus line broker and every person that enters into an independent procurement for nonadmitted insurance shall remit to the division of insurance a tax on the net premiums, exclusive of sums collected to cover federal and other state taxes and examination fees, on nonadmitted insurance subject to tax under this article during the preceding […]
In determining the amount of tax payable to Colorado, the entire amount of tax payable at a rate of three percent on the net premiums is presumed to be owed to Colorado; except that, for those multistate risks involving states that have entered into either a compact or a tax-sharing agreement with Colorado to share […]
If any surplus line broker fails to file the annual statement, or fails to remit the tax provided by section 10-5-111, prior to the first day of April after the tax is due, the broker shall be liable for a fine of twenty-five dollars for each day of delinquency commencing with the first day of […]
The commissioner may revoke any surplus line broker’s license: If the broker fails to file the annual statement or to remit the tax as required by this article; or If the broker fails to keep the records, or to allow the commissioner to examine the broker’s records as required by this article; or For any […]
A nonadmitted insurer may be sued, upon any cause of action arising in this state under any contract issued by it as a surplus line contract, pursuant to this article, in the district court of the county in which the cause of action arose. Service of legal process against the insurer may be made in […]
The commissioner shall maintain such facilities as may be necessary to carry out the purposes of this article. The commissioner may rely upon the advice and assistance of a duly constituted association of brokers in carrying out the purposes of this article, if the association files with the commissioner: A copy of the association’s constitution […]
