REPEALED IN FULLREGULATION 2-1-4
CONCERNING THE ENTRY OF ALIEN INSURANCE COMPANIES IN COLORADO
I. AUTHORITY
This rule is promulgated and adopted by the Commissioner of Insurance under the authority of §§ 10-1-109and 10-3-126, C.R.S.
II. PURPOSE AND BACKGROUND
The purpose of this regulation is to set forth the minimum requirements for alien insurers to obtain a certificateof authority to conduct business in Colorado or to redomesticate to Colorado and to clarify the requirementsimposed by § 10-3-126, C.R.S. This regulation does not apply to alien insurers which have another state astheir state of entry to transact insurance business in the United States.
III. DEFINITIONS
A. "Administrative office" as used in this regulation means a business location wherein the general public can,at a minimum, contact company representatives by person, mail and telephone, to obtain information or formsrelating to the day to day functions of the insurance company, concerning risks located within Colorado. Thisoffice must include a resident manager who is appointed by the company for the purpose of receiving serviceof process against the insurer in the manner required in § 10-3-107, C.R.S.
B. "Alien insurer" as used in this regulation means any insurer as defined in § 10-3-301 (1) C.R.S. excludingthose alien insurers which have another state as their state of entry to transact insurance business in the UnitedStates, which insurers will be treated as foreign insurers.
C. "Principal place of business" as used in this regulation means a business location wherein the general publiccan, at a minimum, contact company representatives by person, mail and telephone, to obtain information orforms relating to the day to day functions of the insurance company, concerning risks located within theUnited States. Such office shall meet the conditions necessary to qualify as a home office or regional homeoffice in this state including maintenance of the financial, corporate and insurance records.
IV. QUALIFICATIONS FOR A LICENSE
A. The following requirements must be satisfied by any alien insurer in order to qualify under § 10-3-126 (1),C.R.S., to be admitted to do business in this state:
1. Administrative Office
An alien insurer must qualify and establish an administrative office, as defined herein, within the state ofColorado. The company must submit sufficient evidence to support compliance with the requirement of anadministrative office. This evidence of compliance must be submitted for review and approval prior tolicensure by the Commissioner of Insurance.
2. Corporate and Insurance Records
The Company's U.S. office must continuously possess and maintain records or documentation sufficient toenable a financial or market conduct examination to be conducted. The Division of Insurance requires full andcomplete access during regular business hours to all such company records or documents.
Corporate records will consist of original documents. However, an exception may be granted for corporaterecords routinely maintained by the applicant outside the United States, wherein exact copies of originaldocuments could be maintained in lieu of the originals. Such records shall be accessible at the administrativeoffice located in this state within 48 hours upon request therefor by the Commissioner of Insurance or hisauthorized representative.
Copies of original insurance records for insurance risks primarily in the United States of America, itsterritories, and its possessions maintained at an office of the alien insurer located within the boundaries of theUnited States shall be accessible at the administrative office located in this state within 48 hours upon suchrequest therefor by the Commissioner of Insurance or his authorized representative.
3. Compliance with Colorado Law Regarding Domestic Insurers
All requirements imposed upon domestic insurers must be satisfied by the alien insurer. These requirementsinclude, but are not limited to, the following:
a. Minimum capital and surplus requirements;
b. Statutory deposits;
c. Policy rates and forms;
d. Investment limitations;
e. Reinsurance arrangements.
4. Annual Statements
All alien insurers qualifying under § 10-3-126 (1), C.R.S. shall provide financial statements prepared inaccordance with the following:
a. NAIC financial blank shall be utilized pursuant to
§ 10-3-208, C.R.S.; however, the Division of Insurance may authorize submission of alternative financialformats.
b. Financial statements submitted to this office shall be prepared in accordance with thNe AIC accountingpractices and procedures manual, as may be amended. However, the Division of Insurance may authorizealternate accounting practices or procedures.
c. Other filings as may be required by the Colorado Division of Insurance.
5. To qualify for authority to transact insurance in this state under § 10-3-126(1) an alien insurer shall maintaindeposits with the Colorado Division of Insurance or with trustees resident in the United States or with anycombination of such persons under trust indentures approved by the Commissioner. The insurer shall cause thepersons holding the deposits to make available to the Division of Insurance a report, under oath on or beforeMarch 1 of each year, of the insurer's deposits as of December 31 of the preceding year. The deposits shall bein cash or cash equivalent or in securities acceptable to the Commissioner of Insurance. Such deposits must be
sufficient to satisfy the following conditions:
a. The deposits or trust shall be not less than the amount of $2,500,000.
b. The deposits shall be held for the benefit of policyholders who were resident of the United States on thedate of issuance of the policy and for the benefit of creditors of the insurer within the United States.
B. In addition to filing Articles of Redomestication acceptable to the Colorado Secretary of State, thefollowing requirements must be satisfied by any alien insurer wishing to qualify under § 10-3-126 (2), C.R.S.:
1. Authorization
An alien insurer will be considered authorized to do business if it satisfies one of the following:
a. It is currently on Colorado's approved, nonadmitted, surplus line company list; or
b. It has satisfied the requirements of § 10-3-126 (1), C.R.S. The requirements imposed by § 10-3-126 (1),
C.R.S. may be satisfied concurrently with the processing of a filing made pursuant to § 10-3-126 (2), C.R.S.
2. Compliance with Colorado Law Regarding Domestic Insurers
All requirements imposed upon domestic insurers must be satisfied by the alien insurer. These requirementsinclude, but are not limited to, the following:
a. Minimum capital and surplus requirements of like insurers;
b. Statutory deposits;
c. Policy rates and forms;
d. Investment limitations;
e. Reinsurance arrangements.
3. Principal Place of Business
An alien insurer operating under § 10-3-126 (2), C.R.S., must qualify and establish a principal place ofbusiness, as defined herein, within the state of Colorado. The company must submit sufficient evidence tosupport compliance with the requirement of a principal place of business. This evidence of compliance mustbe submitted for review and approval prior to licensure by the Commissioner of Insurance.
4. Annual Statements
All alien insurers qualifying under § 10-3-126 (2), C.R.S. shall provide, where required, financial statementsprepared in accordance with the following:
a. NAIC financial blank shall be utilized pursuant to § 10-3-208, C.R.S.
b. Financial statements submitted to this office shall be prepared in accordance with thNe AIC accountingpractices and procedures manual, as may be amended. In addition, all financial statements submitted mustreflect the investment limitations imposed by Colorado statute.
c. Other filings as may be required by the Colorado Division of Insurance.
5. Certificates of Authority
No alien insurer shall hereafter be admitted to this state until such insurer shall file with the commissioner ofinsurance an application therefor upon such forms as the commissioner shall prescribe.
a. Such application shall be accompanied by a copy of the insurer's articles orfe domestication, otherdocuments of organization and bylaws, duly certified by the regulatory official having jurisdiction over thecorporate entity, together with a sworn statement of such insurer's business affairs up to any date required bythe commissioner of insurance of this state to be furnished to him, and any other information, under oath orotherwise, that the commissioner may demand of such applicant.
b. The commissioner shall examine such application and if satisfied that such applicant is safe, reliable, entitledto public confidence, is possessed of the capital and assets required of like insurers organized in this state, isauthorized to do the kind or classes of insurance it seeks to transact, and has complied in all other respects withthe laws of this state, as applicable thereto, he shall issue his certificate of authority to such applicant.
V. FURTHER INFORMATION
Information regarding how NAIC material or other incorporated material may be obtained or examined will beprovided by:
Chief Examiner
Division of Insurance
1560 Broadway, Suite 850
Denver, Colorado 80202
VI. SEVERABILITY
If any provision of this regulation or the application thereof to any person or circumstance is for any reasonheld to be invalid, the remainder of this regulation shall not be affected thereby.
VII. EFFECTIVE DATE
This regulation shall become effective on February 1, 1990.
Repealed In Full Effective March 1, 2012