STATE OF COLORADO
DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF INSURANCE
1560 Broadway, Suite 850
Denver, Colorado 80202
REPEALED IN FULLAmended Regulation 2-1-5
CONCERNING ANNUAL APPLICATION FOR APPROVAL
AS AN AUTHORIZED NONADMITTED REINSURER
AND RESERVE CREDIT FOR MANDATED POOLS
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Section 7
Authority
Background And Purpose
Rules
Severability
Enforcement
Effective Date
History
Section 1
Authority
This regulation is promulgated under the authority of §§ 10-1-109 C.R.S., and 10-3-118(6) C.R.S.
Section 2
Background And Purpose
This regulation sets the form and content of the application for an insurer to be accredited as a
reinsurer in Colorado. The regulation also sets the conditions under which an insurer may take a reserve
credit for participation in a mandated insurance pool.
Section 3
A.
Rules
Filing Requirements
1.
Foreign reinsurers and branch operations of alien reinsurers, authorized to transact
business in at least one state of the United States and filing under the provisions of §
10-3-118(4)(c) C.R.S., shall submit to the Division of Insurance a complete,
executed application form, including Form AR-1 Certificate of Assuming Insurer and
the information required by § 10-3-118(4)(c), C.R.S.
2.
Alien reinsurers maintaining trust funds and filing under the provisions of § 10-3118(4)(f), C.R.S. shall provide the following items in order to make a complete
application:
a. A complete executed application form, including Form AR-1 Certificate of
Assuming Insurer.
b. A copy of the applicant’s most recent financial statement. Such statement shall
contain the information substantially the same as that required to be reported in
the NAIC annual statement form by licensed insurers, to enable the
Commissioner to determine the sufficiency of the trust fund. All values must be
reported in U.S. currency.
c. A copy of the trust instrument, which shall comply with § 10-3-118(4)(f),
Colorado Revised Statutes. The trust must be in a qualified United States
Financial Institution for the benefit of all U.S. ceding insurers.
d. Any amendments to the trust instrument must have been approved by either the
commissioner of the state where the trust is domiciled or the commissioner of
another state who, pursuant to the terms of the trust instrument, has accepted
responsibility for regulatory oversight of the trust.
B.
3.
The Commissioner may request other information which is deemed necessary to
analyze the acceptability of the application.
4.
Forms referenced above are available from, and all applications shall be submitted
to, the Corporate Affairs Section of the Colorado Division of Insurance.
5.
The check for the fee under § 10-3-207, C.R.S., shall be drawn on a United States
bank in U.S. dollars.
6.
All applicants will receive notice of acceptability or a notice of denial that will
indicate the basis for such denial within ninety days after their submission.
Mandated Pools
This section shall apply when an insurer, as a condition of its license in a particular
jurisdiction, is required to participate in a reinsurance arrangement by the applicable laws
of such jurisdiction. Such reinsurance pool will be considered to be accredited and
reserve credits permitted with respect to the insurance of risks located in such
jurisdiction, subject to the following:
1.
Any reinsurance arrangement which is backed by the full faith and credit of the
jurisdiction shall be deemed accredited. It is the responsibility of the member insurer
to provide such evidence upon request.
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2.
Section 4
In other reinsurance arrangements the member ceding insurer may take full reserve
credit for such cession provided the member insurers are jointly and severally liable
for the obligations of the pool and the ceding insurer establishes the full amount of
the accrued liabilities for their participation in the pool. It is the responsibility of the
member insurer to provide such evidence upon request.
Severability
If any provision of this regulation or the application thereof to any person or circumstance is for
any reason held to be invalid, the remainder of this regulation shall not be affected thereby.
Section 5
Enforcement
Noncompliance with this regulation may result, after proper notice and hearing, in the imposition
of any of the sanctions made available in the Colorado statutes pertaining to the business of insurance or
other laws which include the imposition of fines, issuance of cease and desist orders, and/or suspensions
or revocation of license. Among others, the penalties provided for in §10-3-1108, C.R.S. may be applied.
Section 6
Effective Date
This regulation shall be effective January 1, 2006.
Section 7
History
Originally regulation 90-9, effective September 1, 1990.
Amended effective October 1, 1992.
Amended effective August 31, 1994.
Amended effective March 1, 2000.
Amended effective January 1, 2006.
Repealed effective June 1, 2012
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