SENATE BILL 97108
BY SENATORS Hernandez and Linkhart;
also REPRESENTATIVES Schauer, Mace, and Owen.
CONCERNING THE ADMINISTRATIVE ENFORCEMENT AUTHORITY
OF THE DIVISION OF INSURANCE, AND, IN CONNECTION THEREWITH, CONTINUING
THE DIVISION OF INSURANCE AND MAKING APPROPRIATIONS.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 2434104
(26) (b) and (31.5), Colorado Revised Statutes, 1988 Repl. Vol.,
as amended, are amended to read:
2434104. General assembly
review of regulatory agencies and functions for termination, continuation,
or reestablishment. (26) (b) The
following division in the department of regulatory agencies shall
terminate July 1, 1997: The division of insurance, created by
sections 101103 and 101104, C.R.S.
(31.5) The following agencies, functions,
or both, shall terminate on July 1, 2002:
(a) The recordkeeping functions of the
department of human services relating to controlled substances
in accordance with part 3 of article 22 of title 12, C.R.S.;
(b) THE DIVISION OF INSURANCE, CREATED
BY SECTIONS 101103 AND 101104, C.R.S.
SECTION 2. 101103
(6) (b), Colorado Revised Statutes, 1994 Repl. Vol., is amended
to read:
101103. Division of insurance
subject to termination repeal of article.
(6) (b) This article is repealed, effective July
1, 1997
2002. Prior to such repeal, the division of insurance shall be
reviewed as provided for in section 2434104, C.R.S.
SECTION 3. 1031107,
Colorado Revised Statutes, 1994 Repl. Vol., is amended to read:
1031107. Hearings.
Whenever the commissioner has reason to believe that any person
has been engaged or is engaging in this state in any unfair method
of competition or any unfair or deceptive act or practice, whether
defined or reasonably implied in this part 11, OR HAS VIOLATED
ANY OTHER PROVISION OF THIS TITLE OR ANY RULE OR LAWFUL ORDER
OF THE COMMISSIONER, and that a proceeding by him
THE COMMISSIONER in respect thereto would be to the interest of
the public, he
THE COMMISSIONER shall proceed as provided in article 4 of title
24, C.R.S. Any final action by the commissioner pursuant to this
section shall be subject to judicial review by the court of appeals
pursuant to section 244106 (11), C.R.S.
SECTION 4. The
introductory portion to 1031108 (1), Colorado Revised
Statutes, 1994 Repl. Vol., is amended to read:
1031108. Orders.
(1) If, after a hearing conducted under section 1031107,
the commissioner determines that the person charged has engaged
in an unfair method of competition or an unfair or deceptive act
or practice, OR HAS VIOLATED ANY OTHER PROVISION OF THIS TITLE
OR ANY RULE OR LAWFUL ORDER OF THE COMMISSIONER, the commissioner
shall reduce the findings to writing and shall issue and cause
to be served on such person a copy of such findings and an order
requiring such person to cease and desist from engaging in such
method of competition, act, or
practice, OR VIOLATION, and, if such
EXCEPT IN THE CASE OF AN act or practice THAT is NOT a violation
of section 1031104, 1031104.7,
1031105, or 1018106
ANY SPECIFIC PROVISION OF THIS TITLE OR ANY SPECIFIC RULE OR LAWFUL
ORDER OF THE COMMISSIONER, the commissioner may, at his or her
discretion, order any one or more of the following:
SECTION 5. 101205 (3), Colorado Revised Statutes, 1994 Repl. Vol., is amended BY THE ADDITION OF A NEW PARAGRAPH to read:
101205. Financial examination
reports. (3) 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 workpapers and shall enter
an order which:
(d) MAY IMPOSE A MONETARY PENALTY OF NOT
MORE THAN ONE 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 TEN 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 TEN THOUSAND DOLLARS FOR EVERY
ACT OR VIOLATION, BUT NOT TO EXCEED AN AGGREGATE PENALTY OF ONE
HUNDRED FIFTY THOUSAND DOLLARS IN ANY SIXMONTH PERIOD.
SECTION 6. 101205
(4), Colorado Revised Statutes, 1994 Repl. Vol., is amended BY
THE ADDITION OF A NEW PARAGRAPH to read:
101205. Financial examination
reports. (4) (e) ANY ORDER
ISSUED BY THE COMMISSIONER PURSUANT TO PARAGRAPH (d) OF SUBSECTION
(3) OF THIS SECTION MAY BE APPEALED DIRECTLY TO THE COURT OF APPEALS.
SECTION 7. 104716,
Colorado Revised Statutes, 1995 Repl. Vol., as amended, is amended
to read:
104716. Selfinsurers.
(1) Any person in whose name more than twentyfive
motor vehicles are registered may qualify as a selfinsurer
by obtaining a certificate of selfinsurance issued by the
director
COMMISSIONER.
(2) The director
COMMISSIONER may, in his or her discretion, upon the application
of such person, issue a certificate of selfinsurance when
the director is satisfied that such person is possessed and will
continue to be possessed of ability to pay direct benefits as
required under section 104706 (1) (b) to (1) (e) and
to pay any and all judgments which
THAT may be obtained against such person. Upon not less than five
days' notice and a hearing pursuant to such notice, the director
COMMISSIONER may, upon reasonable grounds, cancel a certificate
of selfinsurance. Failure to pay any benefits under section
104706 (1) (b) to (1) (e) or failure to pay any judgment
within thirty days after such judgment shall have become final
shall constitute a reasonable ground for the cancellation of a
certificate of selfinsurance.
SECTION 8. 104720
(1), Colorado Revised Statutes, 1994 Repl. Vol., is amended to
read:
104720. Cancellation
renewal reclassification. (1) Except
in accordance with the provisions of this part 7, no insurer shall
cancel or fail to renew a policy of insurance which complies with
this part 7, issued in this state, as to any resident of the household
of the named insured, for any reason other than nonpayment of
premium, or increase a premium for any coverage on any such policy
unless the increase is part of a general increase in premiums
filed with the commissioner and does not result from a reclassification
of the insured, or reduce the coverage under any such policy unless
the reduction is part of a general reduction in coverage approved
by FILED WITH the commissioner or
to satisfy the requirements of other sections of this part 7.
SECTION 9. 427501,
Colorado Revised Statutes, 1993 Repl. Vol., as amended, is amended
to read:
427501. Selfinsurers.
(1) Any person in whose name more than twentyfive
motor vehicles are registered may qualify as a selfinsurer
by obtaining a certificate of selfinsurance issued by the
director
COMMISSIONER OF INSURANCE.
(2) The director
COMMISSIONER OF INSURANCE may, in his or her discretion, upon
the application of such person, issue a certificate of selfinsurance
when the director
COMMISSIONER OF INSURANCE is satisfied that such person is possessed
and will continue to be possessed of ability to pay all judgments
which
THAT may be obtained against such person. Upon not less than five
days' notice and a hearing pursuant to such notice, the director
COMMISSIONER OF INSURANCE may, upon reasonable grounds, cancel
a certificate of selfinsurance. Failure to pay any judgment
within thirty days after such judgment has become final shall
constitute a reasonable ground for the cancellation of a certificate
of selfinsurance.
SECTION 10. Appropriations.
(1) In addition to any other appropriation, there is
hereby appropriated, out of any moneys in the division of insurance
cash fund not otherwise appropriated, to the department of regulatory
agencies, division of insurance, for the fiscal year beginning
July 1, 1997, the sum of two hundred fortyfive thousand
four hundred one dollars ($245,401) and 0.6 FTE, or so much thereof
as may be necessary, for the implementation of this act.
(2) In addition to any other appropriation,
there is hereby appropriated to the department of law, for the
fiscal year beginning July 1, 1997, the sum of two hundred four
thousand nine hundred eightyfour dollars ($204,984) and
2.8 FTE, or so much thereof as may be necessary, for the provision
of legal services to the department of regulatory agencies related
to the implementation of this act. Said sum shall be from cash
funds exempt received from the department of regulatory agencies
out of the appropriation made in subsection (1) of the section.
SECTION 11. Effective date applicability.
This act shall take effect July 1, 1997, and shall apply to acts
occurring on or after said date.
SECTION 12. 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.
____________________________ ____________________________
Tom Norton Charles E. Berry
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Joan M. Albi Judith M. Rodrigue
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE OF COLORADO