C.R.S. Section 10-4-418
Enforcement procedures

  • penalties

(1)

Any person aggrieved by any rate charged, rating plan, rating system, underwriting rule, policy form, certificate, or contract of insurance or rider followed or adopted by an insurer, advisory organization, or rating organization may request the insurer, advisory organization, or rating organization to review the manner in which the rate, plan, system, rule, form, certificate, or contract or rider has been applied with respect to insurance afforded him. Such request may be made by his authorized representative and shall be written. If the request is not granted within thirty days after it is made, it may be treated as rejected. Any person aggrieved by the action of an insurer, advisory organization, or rating organization in refusing the review requested or in failing or refusing to grant all or part of the relief requested may file a written complaint and request for hearing with the commissioner, specifying the grounds relied upon. If the commissioner finds that probable cause for the complaint does not exist or that the complaint is not made in good faith, he shall deny the hearing; however, if he finds that the complaint charges a violation of this title and that the complainant would be aggrieved if the violation is proven, he shall proceed as provided in subsection (2) of this section.

(2)

Intentionally left blank —Ed.

(a)

If, after examination or inspection of an insurer, rating organization, advisory organization, or group, association, or other organization of insurers which engages in joint underwriting or joint reinsurance, or upon the basis of other information, or upon sufficient complaint as provided in subsection (1) of this section, the commissioner has good cause to believe that such insurer, organization, group, or association, or any rate, rating plan, rating system, underwriting rule, policy form, certificate, contract of insurance or rider, made or used by any such insurer, advisory organization, or rating organization, or proposals thereof made by advisory or rating organizations does not comply with the applicable requirements and standards of this title, he shall, unless he has good cause to believe that such noncompliance is willful, give notice in writing to such insurer, organization, group, or association, stating therein in what manner and to what extent such noncompliance is alleged to exist and specifying therein a reasonable time, not less than ten days thereafter, in which such noncompliance shall be corrected. Notices and filings of underwriting rules required under this section shall be confidential as between the commissioner and the parties.

(b)

The commissioner shall not find that a policy form, certificate, or contract of insurance or rider does not comply with the applicable requirements and standards of this title on the ground that it excludes coverage of claims made by a member of a household against another member of the same household. Such exclusions are in conformity with the public policy of this state.

(c)

Repealed.

(3)

Intentionally left blank —Ed.

(a)

If the commissioner has good cause to believe that such noncompliance is willful or if, within the period prescribed by the commissioner in the notice required by subsection (2) of this section, the insurer, organization, group, or association does not make such changes as may be necessary to correct the noncompliance specified by the commissioner or establish to the satisfaction of the commissioner that such specified noncompliance does not exist, the commissioner may hold a public hearing in connection therewith. Within a reasonable period of time, not less than ten days before the date of such hearing, he shall mail a written notice of the hearing to such insurer, organization, group, or association. The notice given under this subsection (3) shall state in what manner and to what extent noncompliance is alleged to exist and the matters to be considered at such hearing. The hearing shall not include subjects not specified in the notice. The hearing shall be conducted in accordance with section 24-4-105, C.R.S., and the commissioner shall have all the powers granted in said section.

(b)

Any insurer, rating organization, advisory organization, or group, association, or other organization of insurers which engages in joint underwriting or joint reinsurance aggrieved by an order or decision of the commissioner made without a hearing may, within thirty days after notice of the order or decision to the corporation, make written application to the commissioner for a hearing thereon. The commissioner shall hold a hearing as provided in the applicable provisions of article 4 of title 24, C.R.S. Within fourteen days after such hearing, the commissioner shall affirm, reverse, or modify his previous action, specifying his reasons therefor.

(4)

If, after a hearing pursuant to subsection (3) of this section, the commissioner finds:

(a)

That any rate, rating plan, or rating system violates the provisions of this title applicable to it, the commissioner may issue an order to the insurer or rating organization which has been the subject of the hearing, specifying in what respects such violation exists and stating when, within a reasonable period of time, the further use of such rate or rating system by such insurer or rating organization in contracts of insurance made thereafter shall be prohibited. In such order the commissioner may require the excess premium plus a maximum of eighteen percent interest to be refunded to the policyholder. The amount of the refund, plus interest, shall be computed from the effective date of the rate used on the individual policyholder contract to the commencement date of the hearing on the rate. Interest shall be computed as simple interest per annum.

(b)

That an insurer, rating organization, advisory organization, or group, association, or other organization of insurers which engages in joint underwriting or joint reinsurance is in violation of the provisions of this title applicable to it, other than the provisions dealing with rates, rating plans, or rating systems, he may issue an order to such insurer, organization, group, or association which has been the subject of the hearing, specifying in what respects such violation exists and requiring compliance within a specified time thereafter;

(c)

That any policy form, policy, certificate, contract of insurance or rider, or any portion or any proposal thereof made by advisory or rating organizations contains any provision or style of presentation which is deceptive or misleading or renders its use hazardous to the public or the policyholders or otherwise does not comply with the requirements of law, he may issue an order to such insurer, organization, group, or association which has been the subject of the hearing, prohibiting the further use of any such form in this state;

(d)

That the violation of any of the provisions of this title applicable to it by any insurer or rating organization which has been the subject of hearing was willful, he may suspend or revoke, in whole or in part, the certificate of authority of such insurer or the license of such rating organization with respect to the class of insurance which has been the subject matter of the hearing;

(e)

That any rating organization has willfully engaged in any fraudulent or dishonest act or practice, he may suspend or revoke, in whole or in part, the license of such organization in addition to any other penalty provided in this title.

(5)

In addition to other remedies or penalties provided by law:

(a)

The commissioner may suspend or revoke, in whole or in part, the license of any rating organization or the certificate of authority of any insurer which fails to comply with an order of the commissioner within the time limited by such order. The commissioner shall not suspend or revoke the license or certificate of authority for failure to comply with an order until the time prescribed for an appeal therefrom has expired or, if an appeal has been taken, until such order has been affirmed. The commissioner may determine when a suspension or revocation of license or certificate of authority shall become effective. An order of suspension shall remain in effect for the period fixed by the commissioner, unless he modifies or rescinds such suspension or until the order upon which such suspension is based is modified, rescinded, or reversed. No license shall be suspended or revoked except upon a written order of the commissioner, stating his findings, made after a hearing held upon not less than ten days’ written notice to such person or organization specifying the alleged violation.

(b)

If a failure to comply with an order of the commissioner within the time limited by such order is willful, the rating organization or insurer shall be liable to the state in an amount not exceeding five thousand dollars for such failure. The commissioner shall collect the amount so payable and may bring a civil action in the name of the people of the state of Colorado to enforce collection. Such penalty may be in addition to the remedy provided in paragraph (a) of this subsection (5). All moneys collected by the commissioner under this paragraph (b) shall be paid into the general fund of the state of Colorado.

(6)

Any findings, determination, rule, ruling, or order made by the commissioner shall be subject to judicial review by the court of appeals, and proceedings on review shall be in accordance with the provisions of section 24-4-106 (11), C.R.S.

(7)

This section shall apply to insurers providing coverage for exempt commercial policyholders, as defined pursuant to section 10-4-1402 and rules adopted by the commissioner pursuant to that section, that the commissioner determines to be anticompetitive, as described in section 10-4-415.

Source: Section 10-4-418 — Enforcement procedures - penalties, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-10.­pdf (accessed Oct. 20, 2023).

10–4–101
Legislative declaration 10–4–102
Federal “voluntary fair access to insurance required, property insurance program” - state qualification 10–4–103
Voluntary partial payment of liability claims without admission of liability 10–4–104
Competency of minor to contract for insurance - nonavoidance 10–4–105
Valuation of bonds and policies other than life 10–4–106
Assigned risks 10–4–106.5
Medical malpractice insurers - requirement to provide information to the department of public health and environment 10–4–107
Cancellation of medical malpractice policies 10–4–108
Notice 10–4–109
Nonrenewal of medical malpractice policies 10–4–109.5
Notice of intent prior to unilateral increase in premium or decrease in coverage previously provided in medical malpractice policies 10–4–109.6
Medical malpractice insurers - protections relating to reproductive health care - definition 10–4–109.7
Notice of intent prior to cancellation of certain policies of insurance 10–4–110
Notice of intent prior to nonrenewal of certain policies of insurance 10–4–110.3
Exclusions where claim involves sexual misconduct - void 10–4–110.4
Exclusion - claims involving loss in progress not known to insured 10–4–110.5
Notice of intent prior to unilateral increase in premium or decrease in coverage previously provided in certain policies of insurance 10–4–110.6
Homeowner’s insurance - definition 10–4–110.7
Cancellation or nonrenewal - homeowner’s insurance policies 10–4–110.8
Homeowner’s insurance - prohibited and required practices - estimates of replacement value - additional living expense coverage - copies of policies - personal property contents coverage - inventory of personal property - requirements concerning total loss scenarios resulting from wildlife disasters - definitions - rules 10–4–110.9
Fire insurance - issuance and renewal of policies within federally designated disaster areas 10–4–111
Summary disclosure forms required 10–4–112
Property damage - time of payment 10–4–113
Exemptions 10–4–114
Requirements on hazard insurance coverage for loans secured by real property 10–4–115
Private utilization review 10–4–116
Use of credit information 10–4–117
Loss history information report - notice to insured - definition 10–4–118
Severability 10–4–119
Monthly and electronic payment of premiums 10–4–120
Unfair or discriminatory trade practices - legislative declaration 10–4–121
Authority of insurer to protect policyholders’ property - emergency 10–4–301
Bond executed by surety company 10–4–302
Release of surety - other security 10–4–303
Application for release of surety - refund 10–4–304
Place of deposit 10–4–305
Bond part of expense 10–4–401
Purpose - applicability 10–4–402
Definitions 10–4–403
Standards for rates - competition - procedure - requirement for independent actuarial opinions regarding 1991 legislation 10–4–404
Rate administration 10–4–404.5
Rating plans - property and casualty type II insurers - rules 10–4–405
Filing of rating information - certain coverages 10–4–406
Review of filings - certain coverages 10–4–407
Hearings 10–4–408
Rating organization - study of workers’ compensation rates - premium reductions - adoption of rules 10–4–409
Rates furnished - cooperation among organizations 10–4–410
Advisory organizations 10–4–411
Joint underwriting 10–4–412
Assigned risk motor vehicle insurance 10–4–413
Records required to be maintained 10–4–414
Examinations 10–4–415
Prohibition against anticompetitive behavior 10–4–416
Prohibiting changes in rates or coverages 10–4–417
False or misleading information 10–4–418
Enforcement procedures - penalties 10–4–419
Claims-made policy forms 10–4–419.5
Workers’ compensation form certification 10–4–420
Risk management procedures 10–4–421
Notice of rate increases and decreases 10–4–501
Short title 10–4–502
Legislative declaration 10–4–503
Definitions 10–4–504
Scope 10–4–505
Construction 10–4–506
Colorado insurance guaranty association 10–4–507
Board of directors 10–4–508
Powers and duties of association 10–4–508.5
Aggregate liability of association 10–4–509
Plan of operation 10–4–510
Duties and powers of commissioner 10–4–511
Effect of paid claims 10–4–512
Nonduplication of recovery 10–4–513
Prevention of insolvencies 10–4–514
Examination of association 10–4–515
Tax exemption 10–4–516
Recognition of assessments in rates 10–4–517
Immunity 10–4–518
Stay of proceedings 10–4–519
Termination - distribution of funds 10–4–520
Advertising 10–4–601
Definitions 10–4–601.5
Administrative authority 10–4–602
Basis for cancellation 10–4–603
Notice 10–4–604
Nonrenewal 10–4–604.5
Issuance or renewal of insurance policies - proof of insurance provided by certificate, card, or other media 10–4–605
Proof of notice 10–4–606
Further notice 10–4–607
Immunity 10–4–608
Exemptions 10–4–609
Insurance protection against uninsured motorists - applicability 10–4–610
Property damage protection against uninsured motorists 10–4–611
Elimination of discounts - damage by uninsured motorist 10–4–613
Glass repair and replacement 10–4–614
Inflatable restraint systems - replacement - verification of claims - definition 10–4–615
Motorist insurance identification database program - reporting required - fine 10–4–616
Disclosure of credit reports 10–4–617
Insurers - biannual fee - auto theft prevention authority 10–4–619
Coverage compulsory 10–4–620
Required coverage 10–4–621
Required coverages are minimum 10–4–622
Required provision for intrastate and interstate operation 10–4–623
Conditions and exclusions 10–4–624
Self-insurers 10–4–625
Premium payments 10–4–626
Prohibited reasons for nonrenewal or refusal to write policy of automobile insurance applicable to this part 6 10–4–627
Discriminatory standards - premiums - surcharges - proof of financial responsibility requirements 10–4–628
Refusal to write - changes in - cancellation - nonrenewal of policies prohibited 10–4–629
Cancellation - renewal - reclassification 10–4–630
Exclusion of named driver 10–4–632
Reduction in rates for drivers aged fifty-five years or older who complete driver’s education course - legislative declaration 10–4–633
Certification of policy and notice forms 10–4–633.5
Automobile insurance policies - plain language required - rules 10–4–634
Assignment of payment for covered benefits 10–4–635
Medical payments coverage - exceptions - definitions 10–4–636
Disclosure requirements for automobile insurance products offered - rules 10–4–637
No discrimination by profession 10–4–638
Retroactive adjustment of health-care service claims 10–4–639
Claims practices for property damage 10–4–640
Operator’s policy of insurance 10–4–641
Rules - medical payments coverage 10–4–642
Prompt payment of direct benefits - legislative declaration - definitions 10–4–643
Electronic claim forms - rules 10–4–1001
Short title 10–4–1002
Definitions 10–4–1003
Disclosure of information 10–4–1004
Evidence - confidential 10–4–1005
Immunity 10–4–1006
Enforcement 10–4–1007
Penalty 10–4–1008
Municipal ordinances - concurrent jurisdiction - common law 10–4–1009
Continuing duties of insurers - unfair claim settlement practices 10–4–1201
Definitions 10–4–1202
Minimum standards 10–4–1203
Disclosure 10–4–1204
Penalties 10–4–1205
Applicability 10–4–1206
Effective date 10–4–1301
Legislative declaration 10–4–1302
Definitions 10–4–1303
Temporary joint underwriting association 10–4–1304
Board of directors - authority 10–4–1305
Plan of operation - annual certification 10–4–1306
Deficits - assessment - rebate of surplus 10–4–1307
Annual statements 10–4–1308
Examinations 10–4–1309
Legislative declaration - authority of commissioner - emergency rules - judicial review 10–4–1310
Privileged communications 10–4–1311
Tax exemption 10–4–1401
Legislative declaration 10–4–1402
Rules 10–4–1403
Exemption from rate filing, approval, and form certification requirements 10–4–1404
Multistate insurance risks - choice of law 10–4–1501
Definitions 10–4–1502
Licensure of vendors 10–4–1503
Requirements for sale of portable electronics insurance 10–4–1504
Authority of vendors of portable electronics 10–4–1505
Suspension or revocation of license 10–4–1506
Termination of portable electronics insurance 10–4–1507
Application for license - fees 10–4–1601
Definitions 10–4–1602
Exemptions 10–4–1603
Requirements for sale of consumer goods service contracts - definitions 10–4–1604
Obligations of reimbursement insurance companies 10–4–1605
Required disclosures - reimbursement insurance policy 10–4–1606
Required disclosures - service contracts 10–4–1607
Prohibited acts 10–4–1608
Required record keeping 10–4–1609
Enforcement provisions - rules 10–4–1701
Definitions 10–4–1702
Authority to issue license 10–4–1703
License - application - restrictions 10–4–1704
Disclosures to occupant 10–4–1705
Supervision of issuance - training 10–4–1706
Compensation 10–4–1707
Exemption from requirements 10–4–1708
Notification 10–4–1709
Enforcement 10–4–1801
Short title 10–4–1802
Legislative declaration 10–4–1803
Definitions 10–4–1804
Fair access to insurance requirements plan association - creation - participation required 10–4–1805
Fair access to insurance requirements plan association - board of directors - membership - duties 10–4–1806
FAIR plan - plan requirements - insurer requirements 10–4–1807
Plan of operation - mandatory components - amendments - revocation by commissioner - rules 10–4–1808
FAIR plans - requirements for licensed producers 10–4–1809
Assessment of fees 10–4–1810
Enforcement - suspension or revocation of certificate of authority - fines 10–4–1811
Appeals - judicial review 10–4–1812
Rules
Green check means up to date. Up to date

Current through Fall 2024

§ 10-4-418’s source at colorado​.gov