HOUSE BILL 971180
BY REPRESENTATIVES May, Dean, Entz, Schwarz, and Young;
also SENATOR Coffman.
CONCERNING THE COLORADO COMPENSATION INSURANCE AUTHORITY.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 845101
(5) (e) and (11), Colorado Revised Statutes, 1986 Repl. Vol.,
as amended, are amended, and the said 845101 (5) is
further amended BY THE ADDITION OF A NEW PARAGRAPH, to read:
845101. Colorado compensation
insurance authority creation powers and duties.
(5) The board shall:
(e) Promulgate rules that establish the
basis by which employer premiums payable to the Colorado compensation
insurance authority fund are determined. THE BOARD MAY ESTABLISH
DIFFERENT RATES FOR EMPLOYERS WHO MEET THE REQUIREMENTS ESTABLISHED
BY THE BOARD FOR ANY CLASSIFICATION AFTER COMPLYING WITH THE REQUIREMENTS
OF PART 4 OF ARTICLE 4 OF TITLE 10, C.R.S., SO LONG AS THOSE RATES
ARE NOT EXCESSIVE, INADEQUATE, OR UNFAIRLY DISCRIMINATORY.
(e.5) OFFER TO PROVIDE WORKERS' COMPENSATION
INSURANCE AND EMPLOYER'S LIABILITY INSURANCE COVERING ANY LIABILITY
OF COLORADO EMPLOYERS ON ACCOUNT OF PERSONAL INJURIES SUSTAINED
BY, OR THE DEATH OF, ANY EMPLOYEE. THE BOARD SHALL NOT REFUSE
TO INSURE ANY COLORADO EMPLOYER OR CANCEL ANY INSURANCE POLICY
DUE TO THE RISK OF LOSS, EXCEPT AS OTHERWISE PROVIDED IN THIS
TITLE.
(11) Notwithstanding any provision of
law to the contrary, the claim files of injured employees, and
THE policy files of employers, AND ALL BUSINESS RECORDS RELATING
TO THE DETERMINATION OF RATES THAT ARE NOT REQUIRED TO BE DISCLOSED
BY ANY OTHER INSURANCE COMPANY, shall not be subject to the provisions
of part 2 of article 72 of title 24, C.R.S.
SECTION 2. 845106,
Colorado Revised Statutes, 1986 Repl. Vol., as amended, is amended
to read:
845106. Insurance at cost
board may impose surcharges. (1) It
is the duty of the board, in the exercise of the powers and discretion
conferred upon it by articles 40 to 47 of this title, ultimately
to fix and maintain, for each class of occupation, the lowest
possible rates of premium consistent with the maintenance of a
solvent Colorado compensation insurance authority fund, and the
creation and maintenance of a reasonable surplus after the payment
of legitimate claims for injury and death, that may be authorized
to be paid from the Colorado compensation insurance authority
fund for the benefit of injured and dependents of killed employees.
(2) THE BOARD MAY IMPOSE A PREMIUM SURCHARGE,
NOT TO EXCEED AN ADDITIONAL FIFTY PERCENT, FOR UP TO TWELVE CONTINUOUS
MONTHS, AS A CONDITION PRECEDENT TO INSURE OR REINSURE AN EMPLOYER
WHOSE POLICY WAS CANCELED OR TERMINATED BY ANY INSURER FOR REASONS
OF FRAUD OR INTENTIONAL MISREPRESENTATION OF A MATERIAL FACT;
EXCEPT THAT, IF AN EMPLOYER DISPUTES THE IMPOSITION OF SUCH SURCHARGE,
THE EMPLOYER MAY MAKE A COMPLAINT TO THE COMMISSIONER OF INSURANCE.
IF THE COMMISSIONER OF INSURANCE DETERMINES THAT THE BOARD, IN
IMPOSING A PREMIUM SURCHARGE, HAS ENGAGED IN ANY CONDUCT IN VIOLATION
OF PART 11 OF ARTICLE 3 OF TITLE 10, C.R.S., THE COMMISSIONER
MAY TAKE ANY ACTION THE COMMISSIONER DEEMS APPROPRIATE AND AUTHORIZED
BY LAW.
SECTION 3. 845111,
Colorado Revised Statutes, 1986 Repl. Vol., as amended, is amended
to read:
845111. Portions of premiums
paid carried to surplus. The board shall
set aside such proportion as it may deem necessary of the earned
premiums paid into the Colorado compensation insurance authority
fund, as a contribution to the surplus of the fund. NO LATER
THAN JANUARY 1, 2001, THE BOARD SHALL SUBMIT A PLAN FOR APPROVAL
BY THE COMMISSIONER OF INSURANCE FOR THE ATTAINMENT OF A REASONABLE
SURPLUS AS DETERMINED IN ACCORDANCE WITH SECTION 103201,
C.R.S., OR, SUCH SURPLUS AS APPROVED BY THE COMMISSIONER OF INSURANCE.
SECTION 4. 845113
(1), Colorado Revised Statutes, 1986 Repl. Vol., as amended, is
amended BY THE ADDITION OF A NEW PARAGRAPH to read:
845113. Policy canceled,
when. (1) (c) THE COLORADO
COMPENSATION INSURANCE AUTHORITY SHALL NOT BE REQUIRED TO ISSUE
A NEW POLICY OF INSURANCE TO AN EMPLOYER UNTIL ALL MONEYS DUE
THE COLORADO COMPENSATION INSURANCE AUTHORITY HAVE BEEN PAID,
ALL PREMIUMS HAVE BEEN PAID ON ALL CANCELED POLICIES, AND THE
EMPLOYER HAS COMPLIED WITH ALL PROVISIONS OF THE CANCELED POLICY.
SECTION 5. 845117
(1), (2), and (4), Colorado Revised Statutes, 1986 Repl. Vol.,
as amended, are amended, and the said 845117 is further
amended BY THE ADDITION OF A NEW SUBSECTION, to read:
845117. Regulation by commissioner
of insurance. (1) The Colorado
compensation insurance authority shall be subject to regulation
by the commissioner of insurance as provided in:
(a) Part 11 of article 3 of title 10,
C.R.S., pertaining to unfair competition and deceptive practices;
(b) Beginning
January 1, 1990, Part 4 of article
4 of title 10, C.R.S., pertaining to rate regulation; however,
if the rates used by the Colorado compensation insurance authority
are the national council on compensation insurance rates previously
approved by the commissioner of insurance, the Colorado compensation
insurance authority may deviate from
said approved rates without the approval of the commissioner of
insurance if the deviation results in a lower rate to eligible
insureds. USE DIFFERENT RATES FOR
EMPLOYERS WHO MEET THE REQUIREMENTS ESTABLISHED BY THE BOARD OF
DIRECTORS AFTER COMPLYING WITH THE REQUIREMENTS OF PART 4 OF ARTICLE
4 OF TITLE 10, C.R.S., CONCERNING TYPE II INSURERS.
(c) SECTIONS 101108 (8), 101109,
AND 101102, C.R.S., EXCEPT (2) AND (4); 101205,
C.R.S., (1) THROUGH (6) AND (8); 103109, C.R.S., EXCEPT
FOR THE PUBLICATION REQUIREMENTS; 103118, C.R.S.;
103128, C.R.S.; 103202, C.R.S.; 103207,
C.R.S.; 103208, C.R.S. (1) AND (2); 103231,
C.R.S.; 103239, C.R.S.; 103241, C.R.S.;
103701, C.R.S.; AND PART 8 OF ARTICLE 3 OF TITLE 10,
C.R.S., EXCEPT AS THESE SECTIONS ARE INCONSISTENT WITH THE PROVISIONS
OF THIS ARTICLE.
(2) For purposes
of this section, the Colorado compensation insurance authority
shall be deemed to be a company within the meaning of section
101102 (4), C.R.S.
(4) The costs
of regulation by the commissioner
THE COST OF EXAMINATIONS PERFORMED IN ACCORDANCE WITH SECTION
845121 (4), shall be billed by the commissioner to
the authority on a quarterly basis
at prevailing hourly rates based upon time records kept by the
commissioner. Any such payment received by the commissioner is
hereby appropriated to the division of insurance in addition to
any other funds appropriated for its normal operation.
(5) AT SUCH TIME AS A REASONABLE SURPLUS
OF THE COLORADO COMPENSATION INSURANCE AUTHORITY FUND IS REACHED
PURSUANT TO SECTION 845111 OR WHEN THE COLORADO COMPENSATION
INSURANCE AUTHORITY FAILS TO COMPLY WITH THE PLAN TO ATTAIN A
REASONABLE SURPLUS AS SET FORTH IN SECTION 845111,
THE COLORADO COMPENSATION INSURANCE AUTHORITY SHALL BE SUBJECT
TO REGULATION BY THE COMMISSIONER OF INSURANCE AS PROVIDED IN
SECTION 101205 (7) AND PART 4 OF ARTICLE 3 OF TITLE
10, C.R.S., TO THE EXTENT CONSISTENT WITH THE PROVISIONS OF THIS
ARTICLE.
SECTION 6. 845120
(1), Colorado Revised Statutes, 1986 Repl. Vol., as amended, is
amended to read:
845120. State treasurer
to invest funds. (1) Except
as provided in subsection (2) of this section, the state treasurer,
AFTER CONSULTING WITH THE BOARD OF DIRECTORS OR THE BOARD'S DESIGNATED
COMMITTEE AS TO THE OVERALL DIRECTION OF THE PORTFOLIO, shall
invest any portion of the Colorado compensation insurance authority
fund, including its surplus or reserves, which is not needed for
immediate use. Such moneys may be invested in the types of investments
authorized in sections 2436109, 2436112,
and 2436113, C.R.S. SUCH MONEYS MAY ALSO BE INVESTED
IN COMMON AND PREFERRED STOCK IN THE SAME MANNER AS A DOMESTIC
INSURANCE COMPANY PURSUANT TO 103226, C.R.S. THE
STATE TREASURER SHALL DETERMINE THE APPROPRIATE PERCENTAGE OF
THE FUND, NOT TO EXCEED ONE HUNDRED PERCENT OF THE SURPLUS, TO
BE INVESTED IN COMMON AND PREFERRED STOCK AND THE APPROPRIATE
LEVEL OF RISK FOR SUCH INVESTMENTS. THE STATE TREASURER MAY MAKE
SUCH INVESTMENTS IN THE FORM OF MUTUAL FUNDS, AND MAY CONTRACT
WITH PRIVATE PROFESSIONAL FUND MANAGERS AND EMPLOY PORTFOLIO MANAGERS.
SECTION 7.
Safety clause. The general assembly hereby finds, determines,
and declares that this act is necessary for the immediate preservation
of the public peace, health, and safety.
____________________________ ____________________________
Charles E. Berry Tom Norton
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Judith M. Rodrigue Joan M. Albi
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE
OF COLORADO