COLORADO LIFE INSURANCE LAW
dInsurance Commissioner - Appointed by and serves at the will of the governor, hires employees to help
carry out duties, deputy commissioner steps in when commissioner is out
Commissioner's Duties - -Maintaining records that insurers are required by law to file in Commissioner's
office, annual report by March 1
-Requiring domestic insurers to keep adequate records and complies with the law
-Certificate of authority- insurer's license to transact insurance business, expires on June 30 and renewed
annually
-Investigating violations of insurance laws and presenting findings
-Transmitting funds collected by Division of Insurance to state Department of Treasury
-Oversee operation of electronic data interchange projects for billing and health benefit coverage's
-Adopting rules and regulations
-Determining whether rates are excessive, inadequate, or unfairly discriminatory
Commissioner Examinations - Conduct formal financial examination of every insurer license in CO at
least every 5 years, examinations outside of the state will be paid by insurance company, refusal to
comply license could be suspended, revoked, denied, or non-renewed
Investigating Possible Violations - Commissioner is allowed free access to books and documents relating
to insurer's business and may subpoena witnesses and administer oaths during an investigation
Investigation of Application for Insurance Producer License - Commissioner can examine/investigate
person who is applying for license to determine if person has violated insurance laws or rules of the state
or any other state
Unfair Trade Practices - Unfair method of competition or unfair deceptive act
Emergency Cease and Desist Order - Without a hearing if an unauthorized person is engaged in
insurance business without license or in violation of a rule and appears to be fraudulent, creates
immediate danger, or is about to cause significant public injury
Records and Requests for Information - Must be maintained for current calendar year plus 2 years prior
Requests for Information - Response to any Division inquiry must be within 20 calendar days from date
of inquiry -Inquiries during market conduct or financial examination within 10 calendar days
Insurance Producer - Person who solicits, negotiates, effects, procures, delivers, renews, continues, or
binds insurance policies for risks in CO, membership in certain health care prepayment plans, or
membership in certain health care plans
, Controlled Business - Insurance written in licensee's own interests or interests of spouse or employer, if
total during 12 month period premiums on controlled business exceed the total premiums on all other
business, Commissioner will not grant or renew any license used for controlled business
Defamation d- dMaking doral dor dwritten dstatements dthat dare dfalse, dmaliciously dcritical, dor dderogatory
dto dfinancial dcondition dof dinsurer dor dintended dto dinjure danyone din dinsurance dbusiness
-Misdemeanor
-Fine d$500, dimprisonment d12 dmonths, dor dboth
Rebating d- dPractice dof dgiving dsomething dof dvalue dto da dprospective dinsurance dapplicant din dexchange
dfor dpurchase dof dpolicy, dconsidered dunfair dmethod dof dcompetition
Payment dof dBenefits d- dInsurers dmust dpay dfirst dparty dclaims dunder dproperty dand dcasualty dpolicies
dwithin d60 ddays dof dreceiving dvalid dand dcomplete dclaim
-$20 dpenalty don dclaims dunder d$100
-8% dannual dinterest don dclaims dmore dthan d$100 dfrom ddate dof dclaim duntil ddate dclaim dis dpaid
Rate dRegulation dLaws d- dCreated dto dprotect dpublic dby densuring dinsurance drates dare dnot dexcessive,
dinadequate, dor dunfairly ddiscriminatory
-Prohibit dprice dfixing dagreements d(anti-competitive dbehavior)
-Provide drates dthat dare dresponsive dto dcompetitive dmarket dconditions
-Improve davailability dand dreliability dof dinsurance
Certificate dof dauthority dexpires don d- dJune d30 deach dyear, drenew dannually
Commissioner dmust dexamine devery dlicensed dinsurer dat dleast donce devery d- d5 dyears
Any dadministrative dactions dor dcriminal dprosecutions dmust dbe dreported dto dCommissioner dwithin d-
d30 ddays
Penalty dfor dany dperson dapplying dfor/holding dand dinsurance dproducer dlicense dfound dto dhave
dviolated dinsurance dlaws dor drules dof dstate dor dany dother dstate d- dCivil dpenalty dof dup dto d$3,000 dper
dviolation
False dTestimony d- dMax dof d$5,000, d3 dmonths dimprisonment, dor dboth
Falsifying dBooks dor dDocuments d- dMax dof d$5,000, dbetween d2 dand d12 dmonths dimprisonment, dor
dboth
Unfair dTrade dPractices dand dMethods dof dCompetition- dCease dand dDesist dOrders d- dMax dper dviolation
d$3,000
Max dper daggregate d$30,000
Max dper dviolation dknowingly dcommitted d$30,000
dInsurance Commissioner - Appointed by and serves at the will of the governor, hires employees to help
carry out duties, deputy commissioner steps in when commissioner is out
Commissioner's Duties - -Maintaining records that insurers are required by law to file in Commissioner's
office, annual report by March 1
-Requiring domestic insurers to keep adequate records and complies with the law
-Certificate of authority- insurer's license to transact insurance business, expires on June 30 and renewed
annually
-Investigating violations of insurance laws and presenting findings
-Transmitting funds collected by Division of Insurance to state Department of Treasury
-Oversee operation of electronic data interchange projects for billing and health benefit coverage's
-Adopting rules and regulations
-Determining whether rates are excessive, inadequate, or unfairly discriminatory
Commissioner Examinations - Conduct formal financial examination of every insurer license in CO at
least every 5 years, examinations outside of the state will be paid by insurance company, refusal to
comply license could be suspended, revoked, denied, or non-renewed
Investigating Possible Violations - Commissioner is allowed free access to books and documents relating
to insurer's business and may subpoena witnesses and administer oaths during an investigation
Investigation of Application for Insurance Producer License - Commissioner can examine/investigate
person who is applying for license to determine if person has violated insurance laws or rules of the state
or any other state
Unfair Trade Practices - Unfair method of competition or unfair deceptive act
Emergency Cease and Desist Order - Without a hearing if an unauthorized person is engaged in
insurance business without license or in violation of a rule and appears to be fraudulent, creates
immediate danger, or is about to cause significant public injury
Records and Requests for Information - Must be maintained for current calendar year plus 2 years prior
Requests for Information - Response to any Division inquiry must be within 20 calendar days from date
of inquiry -Inquiries during market conduct or financial examination within 10 calendar days
Insurance Producer - Person who solicits, negotiates, effects, procures, delivers, renews, continues, or
binds insurance policies for risks in CO, membership in certain health care prepayment plans, or
membership in certain health care plans
, Controlled Business - Insurance written in licensee's own interests or interests of spouse or employer, if
total during 12 month period premiums on controlled business exceed the total premiums on all other
business, Commissioner will not grant or renew any license used for controlled business
Defamation d- dMaking doral dor dwritten dstatements dthat dare dfalse, dmaliciously dcritical, dor dderogatory
dto dfinancial dcondition dof dinsurer dor dintended dto dinjure danyone din dinsurance dbusiness
-Misdemeanor
-Fine d$500, dimprisonment d12 dmonths, dor dboth
Rebating d- dPractice dof dgiving dsomething dof dvalue dto da dprospective dinsurance dapplicant din dexchange
dfor dpurchase dof dpolicy, dconsidered dunfair dmethod dof dcompetition
Payment dof dBenefits d- dInsurers dmust dpay dfirst dparty dclaims dunder dproperty dand dcasualty dpolicies
dwithin d60 ddays dof dreceiving dvalid dand dcomplete dclaim
-$20 dpenalty don dclaims dunder d$100
-8% dannual dinterest don dclaims dmore dthan d$100 dfrom ddate dof dclaim duntil ddate dclaim dis dpaid
Rate dRegulation dLaws d- dCreated dto dprotect dpublic dby densuring dinsurance drates dare dnot dexcessive,
dinadequate, dor dunfairly ddiscriminatory
-Prohibit dprice dfixing dagreements d(anti-competitive dbehavior)
-Provide drates dthat dare dresponsive dto dcompetitive dmarket dconditions
-Improve davailability dand dreliability dof dinsurance
Certificate dof dauthority dexpires don d- dJune d30 deach dyear, drenew dannually
Commissioner dmust dexamine devery dlicensed dinsurer dat dleast donce devery d- d5 dyears
Any dadministrative dactions dor dcriminal dprosecutions dmust dbe dreported dto dCommissioner dwithin d-
d30 ddays
Penalty dfor dany dperson dapplying dfor/holding dand dinsurance dproducer dlicense dfound dto dhave
dviolated dinsurance dlaws dor drules dof dstate dor dany dother dstate d- dCivil dpenalty dof dup dto d$3,000 dper
dviolation
False dTestimony d- dMax dof d$5,000, d3 dmonths dimprisonment, dor dboth
Falsifying dBooks dor dDocuments d- dMax dof d$5,000, dbetween d2 dand d12 dmonths dimprisonment, dor
dboth
Unfair dTrade dPractices dand dMethods dof dCompetition- dCease dand dDesist dOrders d- dMax dper dviolation
d$3,000
Max dper daggregate d$30,000
Max dper dviolation dknowingly dcommitted d$30,000
