§ 10-6-101. Short Title
This article shall be known and may be cited as the “Colorado Captive Insurance Company Act”. Source: L. 72: p. 428, § 1. C.R.S. 1963: § 72-36-1.
§ 10-6-102. Legislative Declaration
It is the policy of the general assembly and the intent and purpose of this article to simplify the procedures for organizing and regulating the operations of captive insurance companies within the state of Colorado, to encourage the formation of such companies while retaining the integrity, financial solvency, and stability of insurance operations, and thereby […]
§ 10-6-103. Definitions
As used in this article, unless the context otherwise requires: “Affiliated company” means any company that directly or indirectly owns or controls a pure captive insurance company and any company owned or controlled, directly or indirectly, by a parent or subsidiary. “Captive insurance company” means a pure captive insurance company or a group captive insurance […]
§ 10-6-105. Employee Benefits – Minimum Coverages
Any captive insurance company issuing employee benefits coverages, as approved by the commissioner, in its plan of operation shall provide the minimum mandated insurance coverages required of insurance companies in the state. (Deleted by amendment, L. 91, p. 1224 , § 4, effective May 24, 1991.) (Deleted by amendment, L. 94, p. 542 , § […]
§ 10-6-106. Names of Companies
No captive insurance company shall adopt the name of any existing company nor any name which may be misleading to the public. Source: L. 72: p. 430, § 1. C.R.S. 1963: § 72-36-6. L. 94: Entire section amended, p. 543, § 4, effective April 6.
§ 10-6-107. Formation and Operation of Captive Insurance Companies
No person shall engage in the business of insurance as a captive insurance company without first applying for and obtaining a certificate of authority from the commissioner stating that such person complies with the laws of this state. Applicants shall submit articles of incorporation or other documents of organization for examination. If accepted and approved […]
§ 10-6-108. Control of Operations
The business of each captive insurance company shall be managed by a board of directors or other governing body consisting of not less than three persons. The organizational documents or bylaws shall provide for the terms, meetings, and elections of the directors and officers of the governing body. No individual may serve as a director […]
§ 10-6-113. Authority to Do Business
The certificate of authority issued to a captive insurance company shall expire on June 30 each year and shall be renewed annually, upon payment of all required fees and filing of all lawfully required reports, if the company has continued to comply with the laws of this state. Within thirty business days from the day […]
§ 10-6-114. Reports and Statements
Every captive insurance company doing business in this state shall render to the commissioner a report, signed and sworn to by its chief officers, of its condition as of the end of each fiscal year, which shall be in a form prescribed by the commissioner and contain such information as the commissioner deems necessary. Such […]
§ 10-6-115. Grounds and Procedure for Suspension or Revocation of Certificate – Review by Commissioner
The certificate of authority of a captive insurance company to do business in this state may be revoked or suspended by the commissioner for any violation of this article, including without limitation the following: Insolvency or impairment; Failure to meet the requirements of section 10-6-116; Refusal or failure to submit an annual report, as required […]
§ 10-6-116. Capital and Surplus Requirements
No captive insurance company issued a certificate of authority shall be permitted to do any business in this state unless it maintains total capital and surplus of not less than five hundred thousand dollars. (1.5) Upon a written finding by the commissioner that the approved plan of operation or the operational results of the captive […]
§ 10-6-120. Examinations and Investigations
The commissioner or any person so authorized has the authority to examine the financial condition, affairs, and management of any applicant or captive insurance company operating under the laws of this state. For such purpose the commissioner shall have free access to all the books, papers, and documents relating to the business of the company, […]
§ 10-6-121. Legal Investments
Group captive insurance companies shall comply with the investment requirements and limitations applicable to other insurance companies under the laws of this state as described in sections 10-1-102 (2) and (16), 10-3-213 to 10-3-242, and 10-3-802. Pure captive insurance companies shall not be subject to any restrictions on investments whatsoever; except that the commissioner may […]
§ 10-6-122. Reinsurance
Except as otherwise provided in subsection (2) of this section, any captive insurance company authorized to do business in this state may take credit for reserves on risks ceded to a reinsurer pursuant to part 7 of article 3 of this title and any applicable rules. Notwithstanding the provisions of subsection (1) of this section, […]
§ 10-6-125. Filing of Rates
A group captive insurance company’s rates, rate classification systems, or funding levels shall be sufficient to fund expected operations and expenses. The commissioner may require that a pure captive insurance company file rating or funding data if such pure captive insurance company provides or plans to provide employee benefits. Rating structures for insurance applied to […]
§ 10-6-127. Guaranty Fund Coverage – Not Required
Any provision of the law to the contrary notwithstanding, no captive insurance company shall be compelled to join or contribute financially to any plan, pool, association, or guaranty or insolvency fund in this state; nor shall any captive insurance company or its insured receive any benefit from such plan, pool, association, or guaranty or insolvency […]
§ 10-6-128. Tax on Premiums Collected – Exemptions – Penalties
All captive insurance companies doing business in this state, except a disqualified insurance company, shall pay to the division of insurance an annual tax on the gross amount of all premiums collected, less premiums or premium credits returned to policyholders, on policies or contracts of insurance covering property or risks in this state and on […]
§ 10-6-128.5. Penalties
The commissioner may charge a late fee of up to one hundred dollars per day for any required or reasonably requested report which is received after the filing deadline. Any company failing to pay taxes as specified in this article shall be liable to pay a penalty of up to one hundred dollars for each […]
§ 10-6-129. Rules of Commissioner
The commissioner may establish and from time to time amend such reasonable rules as are necessary to enable the commissioner to carry out the commissioner’s duties under this article, including rules concerning the establishment and nature of loss reserves. Source: L. 72: p. 439, § 1. C.R.S. 1963: § 72-36-29. L. 92: Entire section amended, […]
§ 10-6-130. Laws Applicable
The provisions of law generally applicable to insurance companies shall not apply to captive insurance companies except as specifically provided in this article and except that captive insurance companies are subject to parts 9 and 10 of article 2 of this title and parts 7, 11, and 12 of article 3 of this title. Group […]