C.R.S. Section 10-12-105
Guaranty fund of mutual companies

(1)

Guaranty fund certificates may be issued to provide a guaranty fund for domestic life and fire insurance companies incorporated upon the mutual plan and for domestic casualty insurance associations incorporated upon the assessment plan, such fund to be held as security for the payment of all losses and other policy liabilities of such companies. Guaranty fund certificates may draw interest or dividends not exceeding in the aggregate eight percent per annum, which shall only be paid from the profits of the company. The certificates may only be retired or redeemed by using the profits of the company for that purpose, but the full fund as required of each kind of mutual and assessment company by this title (except article 15), and article 14 of title 24, C.R.S., shall at all times be maintained. Such guaranty fund shall be a liability until redeemed or retired. It shall only be used to pay policy claims or liabilities when the contingent mutual liability of the policyholders has been drawn upon and found insufficient to meet the losses of policy claims or when the directors for any cause fail to provide for the payment of policy claims.

(2)

Upon satisfying himself of such failure, the commissioner shall suspend the certificate of authority of such company and apply to the district court for an order restraining said company from doing further business; and the court may appoint a receiver or issue such decrees and orders as may best serve the interests of the members or policyholders and of the public; and the disbursement or distribution of the guaranty fund shall then be made under the court’s direction; but the fund shall first be used to pay policy claims or losses, and, if any of the fund then remains, it shall be used to pay creditors, if any, and the then remaining portion of the fund shall be used to redeem outstanding guaranty fund certificates, or, if none are outstanding, it shall be distributed among the members of the company as the court may direct. The profits of a domestic mutual insurance company or association are that portion of its cash funds not required for the payment of losses and expenses and not set apart for the unearned premium reserve or any other purpose required by law.

Source: Section 10-12-105 — Guaranty fund of mutual companies, (accessed Dec. 24, 2024).

10‑12‑101
Mutual protective associations 10‑12‑102
Association to file articles - bylaws 10‑12‑103
Noncompliance a misdemeanor - penalty 10‑12‑104
Fees - annual statement - tax 10‑12‑105
Guaranty fund of mutual companies 10‑12‑106
Fees of mutual companies 10‑12‑107
Ownership of profits 10‑12‑108
Mutual insurance companies - corporation policyholders 10‑12‑109
Mutual insurance companies - voting powers 10‑12‑110
Mutual insurance companies - premiums and premium deposits 10‑12‑111
Mutual life assessment companies prohibited - when 10‑12‑112
Validation clause 10‑12‑401
Legislative declaration 10‑12‑402
Scope of provisions 10‑12‑403
Mutual insurer defined 10‑12‑404
Company name 10‑12‑405
Applicability of other code and corporation code provisions 10‑12‑406
Lines of business 10‑12‑407
Bylaws 10‑12‑408
Liability of members 10‑12‑409
Dividends 10‑12‑410
Insolvency or impairment of mutual insurance company 10‑12‑411
Conversion of domestic mutual insurer to domestic stock or other form of insurer

California:	Codes
Colorado:	C.R.S.
Nevada:	NRS
New York:	Laws
Oregon:	OAR, ORS
Texas:	Statutes
World:	Rome Statute, International Dictionary

C.R.S. Section 10-12-105 Guaranty fund of mutual companies

(1)

(2)

C.R.S. Section 10-12-105
Guaranty fund of mutual companies