Colorado has amended its laws regarding credit for reinsurance and receiverships to conform to certain model acts adopted by the National Association of Insurance Commissioners (NAIC). House Bill 14-1315, conforms Colorado Revised Statutes 10-3-701 through 10-3-706 with the NAIC Credit for Reinsurance Model Act to establish criteria that the insurance commissioner is to use in certifying reinsurers, imposes requirements on ceding insurers to take certain steps to manage their concentration of risk, and imposes requirements upon the insolvency of a non-U.S. insurer or reinsurer that provides security to fund its U.S. obligations.
Furthermore, House Bill 14-1315 enacts Colorado Revised Statute 10-3-540.5 to specify the conditions under which insurance companies may offset their obligations to each other when an insurance company becomes insolvent. Colorado Revised Statute 10-3-540.5 adopts section 711 of the NAIC Insurer Receivership Model Act.
The Governor signed House Bill 14-1315 on May 31, 2014. The amendments to Colorado Revised Statutes 10-3-701 through 10-3-706 are effective January 1, 2015. Colorado Revised Statute 10-3-540.5 is effective August 6, 2014.
This post written by Kelly A. Cruz-Brown.
See our disclaimer.