§ 10-4-501. Short Title

This part 5 shall be known and may be cited as the “Colorado Insurance Guaranty Association Act”. Source: L. 71: p. 756, § 1. C.R.S. 1963: § 72-34-1.

§ 10-4-502. Legislative Declaration

The purposes of this part 5 are to provide a mechanism for the payment of covered claims under certain insurance policies, to avoid excessive delay in payment and financial loss to claimants or policyholders because of the insolvency of an insurer, to assist in the detection and prevention of insurer insolvencies, and to provide an […]

§ 10-4-503. Definitions

As used in this part 5, unless the context otherwise requires: “Account” means any one of the three accounts created by section 10-4-506. “Association” means the Colorado insurance guaranty association created under section 10-4-506. “Commissioner” means the commissioner of insurance of this state. “Covered claim” means an unpaid claim, including one for unearned premiums: That […]

§ 10-4-504. Scope

This part 5 shall apply to all kinds of direct insurance, except life, title, surety, sickness and accident, disability, credit, mortgage guaranty, financial guaranty, and ocean marine insurance. Source: L. 71: p. 756, § 1. C.R.S. 1963: § 72-34-3. L. 77: Entire section amended, p. 513, § 4, effective May 27. L. 89: Entire section […]

§ 10-4-505. Construction

This part 5 shall be liberally construed to effect the purposes enumerated in section 10-4-502, which section shall constitute an aid and guide to interpretation. Source: L. 71: p. 756, § 1. C.R.S. 1963: § 72-34-4.

§ 10-4-506. Colorado Insurance Guaranty Association

There is created a nonprofit unincorporated legal entity to be known as the Colorado insurance guaranty association. All member insurers shall be and remain members of the association as a condition of their authority to transact insurance business in this state. The association shall perform its functions under a plan of operation established and approved […]

§ 10-4-507. Board of Directors

The board of directors of the association shall consist of not less than five nor more than nine persons serving terms as established in the plan of operation. The members of the board shall be selected by member insurers, subject to the approval of the commissioner. Vacancies on the board shall be filled for the […]

§ 10-4-508. Powers and Duties of Association

The association shall: Be obligated to the extent of the covered claims existing prior to a determination of insolvency and arising within thirty days after the determination of insolvency, or before the policy expiration date, if less than thirty days after such determination, or before the insured replaces the policy or on request effects cancellation, […]

§ 10-4-508.5. Aggregate Liability of Association

Notwithstanding any other provisions of this part 5, except in the case of a claim for benefits under workers’ compensation coverage, any obligation of the association to any and all persons shall cease when ten million dollars shall have been paid in the aggregate by the association and any one or more associations similar to […]

§ 10-4-509. Plan of Operation

The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall become effective upon approval in writing by the commissioner. If the association fails to submit a suitable […]

§ 10-4-510. Duties and Powers of Commissioner

The commissioner shall: Notify the association of the existence of an insolvent insurer not later than three days after he receives notice of the determination of the insolvency; Upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer. The commissioner may: Require […]

§ 10-4-511. Effect of Paid Claims

Any person recovering under this part 5 from the association shall be deemed to have assigned his rights under the policy to the association to the extent of his recovery from the association. Every insured or claimant seeking the protection of this part 5 shall cooperate with the association to the same extent as such […]

§ 10-4-512. Nonduplication of Recovery

Any person having a claim against an insurer under any provision in any insurance policy that is also a covered claim shall exhaust first the person’s right under such policy. Any amount payable on a covered claim under this part 5 is reduced by the amount recoverable under such insurance policy. Any person having a […]

§ 10-4-513. Prevention of Insolvencies

To aid in the detection and prevention of insurer insolvencies, it is the duty of the board of directors, upon majority vote, to notify the commissioner of any information indicating that any member insurer may be insolvent or is in a financial condition hazardous to the policyholders or the public. To aid in the detection […]

§ 10-4-514. Examination of Association

The association shall be subject to examination and regulation by the commissioner. The board of directors shall submit, not later than March 30 of each year, a financial report for the preceding calendar year in a form approved by the commissioner. Source: L. 71: p. 762, § 1. C.R.S. 1963: § 72-34-14.

§ 10-4-515. Tax Exemption

The association shall be exempt from payment of all fees and all taxes levied by this state or any of its subdivisions, except taxes levied on real or personal property. Source: L. 71: p. 762, § 1. C.R.S. 1963: § 72-34-15.

§ 10-4-516. Recognition of Assessments in Rates

The rates and premiums charged for insurance policies to which this part 5 applies shall include amounts sufficient to recoup a sum equal to the amounts paid to the association by the member insurer, less any amounts returned to the member insurer by the association, and such rates shall not be deemed excessive because they […]

§ 10-4-517. Immunity

There shall be no liability on the part of, and no cause of action of any nature shall arise against, any member insurer, the association or its agents or employees, the board of directors, or the commissioner or his representatives for any action taken by them in the performance of their powers and duties under […]

§ 10-4-518. Stay of Proceedings

All proceedings to which an insolvent insurer is a party in any court in this state shall be stayed for sixty days after the date the insolvency is determined to permit proper defense by the association of all pending causes of action. Source: L. 71: p. 763, § 1. C.R.S. 1963: § 72-34-18. Cross references: […]

§ 10-4-519. Termination – Distribution of Funds

The commissioner shall by order terminate the operation of the association as to any kind of insurance covered by this part 5 with respect to which he has found, after hearing, that there is in effect a statutory or voluntary plan which: Is a permanent plan which is adequately funded or for which adequate funding […]