Colorado Legislative Council Staff
NO FISCAL IMPACT
February 6, 1998
House Business Affairs
Will Meyer (866-4976)
TITLE: CONCERNING THE AUTHORITY OF THE COMMISSIONER OF INSURANCE TO IMPOSE CERTAIN REQUIREMENTS ON NONADMITTED INSURERS AS A CONDITION OF BEING AN APPROVED NONADMITTED INSURER IN THIS STATE, AND, IN CONNECTION THEREWITH, ADOPTING STANDARDS FOR THE SERVICE OF PROCESS AND TRUST REQUIREMENTS FOR NONADMITTED INSURERS.
Summary of Assessment
The provisions of the bill would amend the required amount of the trust an unincorporated group of individual insurers, commonly known as a Lloyd’s plan, or similar group must maintain to do business in this state. It would change it from an amount equal to the group’s liabilities in this country to an amount satisfactory to the Commissioner of Insurance that is not less than the amount required in the state where the trust is located. The bill would become effective upon signature of the Governor.
The Division of Insurance reviews such companies on an annual basis and such companies would be required to meet the standards contained in this bill to be approved to do business in Colorado. The provisions of the bill would not affect any agency of the state, or unit of local government. Therefore, this bill is assessed as having no fiscal impact.