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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0373.01 DHG SENATE BILL 98­044

STATE OF COLORADO

BY SENATOR Martinez;

also REPRESENTATIVE Tate.

BUSINESS AFFAIRS & LABOR

A BILL FOR AN ACT

CONCERNING AN INCREASE IN THE LOSS RATIO STANDARD FOR CREDIT INSURANCE.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

Increases the credit insurance loss ratio standard to 55% from the current 40%.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  10­10­109 (2), Colorado Revised Statutes, is amended to read:

10­10­109.  Filing, approval, and withdrawal of forms. (2)  The commissioner shall, within thirty days after the filing of any such policies, certificates of insurance, notices of proposed insurance, applications for insurance, endorsements, and riders, disapprove any such form if the benefits provided therein are not reasonable in relation to the premium charge or if it contains provisions which THAT are unjust, unfair, inequitable, misleading, or deceptive, or encourage misrepresentation of the coverage, or are contrary to any provisions of the insurance code or of any rule or regulation promulgated thereunder. A premium rate or schedule of premium rates shall be deemed reasonable for all purposes under this article if the rate or schedule produces, or reasonably may be expected to produce, a ratio of incurred claims to earned premium of not less than forty FIFTY­FIVE percent.

SECTION 2.  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.