C.R.S. Section 10-1-205
Financial examination reports


Examination reports must comprise only facts appearing upon the books, records, or other documents of the company, its agents, or other persons examined, or as ascertained from the testimony of its officers or agents or other persons examined concerning its affairs, and the conclusions and recommendations as the examiners find reasonably warranted based upon the facts.


No later than sixty days after completion of the examination, the examiner in charge shall file with the division a verified written report of examination under oath. Upon receipt of the verified report, the division shall transmit to the company examined both the report and a notice stating that the company examined shall be afforded a reasonable period not exceeding thirty days, within which to make a written submission or rebuttal with respect to any matters contained in the examination report.


Within thirty days after the end of the period allowed for the receipt of written submissions or rebuttals, the commissioner shall fully consider and review the report, any written submissions or rebuttals, and any relevant portions of the examiner’s work papers and shall enter an order that does one or more of the following:


Adopts the examination report as filed or with specified modifications or corrections; and if the examination report reveals that the company is operating in violation of any law, rule, or prior lawful order of the commissioner, the commissioner may order the company to take any action the commissioner considers necessary and appropriate to cure such violation; or


Rejects the examination report and directs the examiners to reopen the examination for purposes of obtaining additional data, documentation, or information and to refile the report pursuant to subsection (1) of this section; or


Calls for an investigatory hearing, upon no less than twenty days’ notice to the company, for purposes of obtaining additional documentation, data, information, and testimony; or


May impose a monetary penalty of not more than three thousand dollars for every act in violation of any law, rule, or prior lawful order of the commissioner described in the report of examination, but not to exceed an aggregate penalty of thirty thousand dollars unless the company knew or reasonably should have known that its conduct was in violation of any law, rule, or prior lawful order of the commissioner, in which case the penalty shall not be more than thirty thousand dollars for every act or violation, but not to exceed an aggregate penalty of seven hundred fifty thousand dollars annually.


Intentionally left blank —Ed.


All orders entered pursuant to subsection (3)(a) of this section must be accompanied by findings and conclusions resulting from the commissioner’s consideration and review of the examination report, relevant examiner work papers, and any written submissions or rebuttals. The order is a final agency decision and must be served upon the company by certified mail together with a copy of the adopted examination report. Notwithstanding the requirements of section 10-1-127, the final agency decision is subject to judicial review by the district court pursuant to section 24-4-106.Within thirty days after issuance of the adopted report, the company shall file affidavits executed by each of its directors stating under oath that the directors have received a copy of the adopted report and related orders.


Any hearing conducted under paragraph (c) of subsection (3) of this section by the commissioner or an authorized representative shall be conducted as a nonadversarial, confidential, investigatory proceeding as necessary for the resolution of any inconsistencies, discrepancies, or disputed issues apparent upon the face of the filed examination report or raised by or as a result of the commissioner’s review of relevant work papers or by the written submission or rebuttal of the company. Such hearing shall not be subject to the “State Administrative Procedure Act”, article 4 of title 24, C.R.S. Within twenty days after the conclusion of any such hearing, the commissioner shall enter an order pursuant to paragraph (a) of subsection (3) of this section.


The commissioner shall not appoint an examiner as an authorized representative to conduct the hearing. The hearing shall proceed expeditiously with discovery by the company limited to the examiner’s work papers that tend to substantiate any assertions set forth in any written submission or rebuttal. The commissioner or representative may issue subpoenas for the attendance of any witnesses or the production of any documents deemed relevant to the investigation, whether under the control of the division, the company, or other persons. The documents produced shall be included in the record. Testimony taken by the commissioner or representative shall be under oath and preserved for the record.


The hearing shall proceed with the commissioner or representative posing questions to the persons subpoenaed. Thereafter, the company and the division may present testimony relevant to the investigation. The company and the division shall be permitted to make closing statements and may be represented by counsel of their choice.


Any order issued by the commissioner pursuant to subsection (3)(d) of this section may be appealed to the district court.


Upon the adoption of the examination report pursuant to paragraph (a) of subsection (3) of this section, the commissioner shall continue, for at least thirty days, to hold the content of the examination report as private and confidential information except to the extent provided in subsection (2) of this section. Thereafter, the commissioner may open the report for public inspection unless a court of competent jurisdiction has stayed its publication.


No provision of this title shall prevent or be construed as prohibiting the commissioner from disclosing the content of an examination report, preliminary examination report or results, or any matter relating thereto to the insurance division of this or any other state or country, or to law enforcement officials of this or any other state, or to any agency of the federal government at any time subject to the written agreement of the recipient to hold such information confidential and to treat it in a manner consistent with this part 2.


In the event the commissioner determines that regulatory action is appropriate as a result of any examination, the commissioner may initiate any proceedings or actions as provided by law.


Confidentiality of ancillary information.


All working papers, recorded information, documents, and copies thereof that are produced or obtained by or disclosed to the commissioner or any other person in the course of an examination made under this part 2 or in the course of analysis of the financial condition of the company by the commissioner are confidential, are not subject to subpoena, and may not be made public by the commissioner or any other person except to the extent provided in subsection (5) of this section; except that the commissioner may grant the NAIC access to the materials. Disclosure of the materials may be made only upon the prior written agreement of the recipient to hold the information confidential as required by this section or upon the prior written consent of the company to which it pertains.


Neither the commissioner nor any person who received the documents, materials, or other information while acting under the authority of the commissioner, including the NAIC and its affiliates and subsidiaries, may testify in any private civil action concerning any confidential documents, materials, or information subject to subsection (8)(a) of this section.

Source: Section 10-1-205 — Financial examination reports, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-10.­pdf (accessed Oct. 20, 2023).

Legislative declaration
Division of insurance - division of insurance cash fund created - division subject to repeal - repeal of functions
Commissioner of insurance - other employees
Oath required of insurance commissioner and actuary
Personal fees prohibited
Duties of commissioner - reports - publications - fees - disposition of funds - adoption of rules - examinations and investigations
Rules of commissioner
Grounds and procedure for suspension or revocation of certificate or license of entities
Invoking aid of courts
Policy conditions required by other states
No seal required on policies
Sale of premium notes prohibited
Defamation of other companies - penalty
Company unauthorized in other states
Foreign companies - unsatisfied judgments - suspension
Insurance vending machines prohibited
Reporting of medical malpractice claims
Reporting of malpractice claims against nurses
Reporting of malpractice claims against physical therapists
Reporting of malpractice claims against architects
Reporting of claims against plumbers
Reporting of podiatric malpractice claims
Reporting of malpractice claims against optometrists
Reporting of malpractice claims against pharmacists and pharmacies
Reporting of malpractice claims against naturopathic doctors
Reporting of malpractice claims against audiologists
Training program for persons working with the aging
Discretionary use of administrative law judges
Fraudulent insurance acts - immunity for furnishing information relating to suspected insurance fraud - legislative declaration
Fraudulent insurance acts - enforcement
Availability of sickness, health, and accident insurance
Duties to third parties - rules
Oversight of the general assembly
Consumer insurance council - creation - advisory body - appointment of members - meetings - repeal
Office of insurance ombudsman - plan - report to joint budget committee
Reimbursement for benefits - limitations - notice - definitions - legislative declaration
Insurance policies - language other than English - definitions
Electronic delivery of documents - when permitted - definitions - consent - construction with other laws
Internet posting of standard insurance provisions - conditions - notice of revisions
Subpoena authority
Investigations - rules
Prohibition on denial of coverage or increase in premiums of insurance for living organ donors - commissioner to enforce - short title - definitions
Cost to reconstruct a home - annual report - homeowner’s insurance affordability study - rules
Legislative declaration
Authority, scope, and scheduling of examinations
Conduct of examinations - conferences - penalty
Financial examination reports
Conflict of interest
Immunity from liability - prohibited activity
Coordination with other states through NAIC
Additional duties of commissioner
Legislative declaration
Market analysis - market conduct surveillance
Authority and scope of market conduct surveillance - rules - penalty
Market conduct examinations
Market conduct surveillance personnel
Immunity from liability - prohibited activity
Confidentiality requirements
Fines and penalties
Participation in national market conduct databases
Coordination with other states through NAIC
Green check means up to date. Up to date

Current through Fall 2024

§ 10-1-205’s source at colorado​.gov