REPEALED IN FULL REGULATION 1-1-4
CONCERNING THE MAINTENANCE OF OFFICES IN THIS STATE
I. AUTHORITY
This regulation is promulgated under the authority of §§ 10-1-108(8), 10-1-109 and 10-3-128(4), C.R.S.
II. PURPOSE
The provisions of § 10-3-128, C.R.S. require that every applicant applying for an initial certificate of authority maintain offices in this state and that any insurer licensed in Colorado prior to July 1,1991 file a plan for compliance. The purpose of this regulation is to describe how companies can comply with this statute and also to describe the information which must be furnished by companies filing to prove compliance with or requesting a waiver for these provisions.
III. SCOPE
This regulation shall apply to all Colorado domestic insurance companies.
IV. DEFINITION
A. "Books and Records" as used herein shall include all information which is necessary for an examiner or other representative of the Commissioner to conduct a financial, actuarial, rate or market conduct examination of the insurer, including, but not limited, to underwriting files, claims files, policy form files, actuarial support files, in-force files and listings, general ledgers, accounting journals, trial balance ledgers, organizational documents, board and other committee minutes, stock journals, and complaint logs.
B. "Plan of Operation" as used herein shall include all pertinent information necessary to
understand the company operation, including, but not limited to, a summary of the current products being offered, method of offering, facilities to service the products and area of solicitation.
C. "Readily Accessible" as used herein shall mean that the referenced documents or copies of such documents are physically available in Colorado within ten calendar days of a request, or are immediately electronically available from Colorado, by an examiner or other representative of the Commissioner.
V. PLAN OR EVIDENCE OF COMPLIANCE
As a continuing condition of the insurer's authority to transact the business of insurance in Colorado, all domestic insurance companies must maintain, and if requested, file sufficient evidence satisfactory to the Commissioner, to justify and support compliance with the requirements of § 10-3-128(1), C.R.S.
The standards as outlined in statute require that each company meet condition (a) below and either condition (b) or (c) below:
a. that the company's books and records are readily accessible, and;
b. that there is significant economic development being provided to Colorado. Compliance may be demonstrated by the company maintaining a home or regional home office in Colorado or actually spending in Colorado at least $200,000 annually. This minimum expense tabulation may include salaries for Colorado employees, purchases made in Colorado, taxes paid to Colorado (excluding premium tax) and other expenditures made in Colorado. This tabulation should not include premiums paid by insureds, commissions paid, or any secondary effect of the moneys spent in
Colorado. Alternatively, the company may make other demonstration acceptable to the
Commissioner to satisfy this standard, or;
c. that insurance products are currently or reasonably anticipated to be offered and beneficial to the Colorado insurance buying public. These products must reasonably be anticipated to be purchased by Colorado residents. The company should also describe the method and means by which these products will be offered.
Under the statute any company licensed prior to July 1, 1991, which does not maintain its home, principal, executive offices and its books and records in Colorado was required to file, by January 1, 1992, a demonstration of how it believes compliance with the standards of Section 10-3-128(1), C.R.S. is being achieved.
VI. WAIVER/MODIFICATION OF REQUIREMENTS
In accordance with § 10-3-128(3), C.R.S., a new or existing company which is unable to meet the requirements of this regulation may file a formal written request to the Commissioner to modify or waive such requirements. Such written request shall include details of the condition or conditions for which waiver or modification is requested. Such request shall include a summary of the company's current plan of operation along with any other material or information the company considers pertinent and a corporate resolution that immediate notice will be provided the Commissioner in the event of material change in any of the above.
In determining whether or not to grant a waiver under Section 10-3-128, C.R.S., the Division will consider each application on a case by case basis. The Division will consider, among other things whether the company maintained its books and records outside of the State of Colorado on July 1, 1991, whether the company had received written authority from the Division to remove its books and records from the State of Colorado and whether the company has complied with the requirements of Colorado law and regulations and directives of the Division as well as the history of complaints regarding the availability or accessibility of its books and records.
A waiver once granted may, under appropriate circumstances, be subject to revocation. For example, a waiver allowing a company to maintain its books and records in one location will not be deemed to allow the company to change the location of its books and records to an alternate location outside of Colorado.
If such request for waiver or modification is acceptable to the Commissioner, such waiver or modification shall be limited to the present location and filed plan of the company. The company may be required at any time to provide evidence satisfactory to the Commissioner that such plan is being maintained.
VII. SEVERABILITY
If any provision of this regulation or the application thereof to any person or circumstance is for any reason held to be invalid, the remainder of this regulation shall not be affected thereby.
VIII. EFFECTIVE DATE
This regulation initially became effective April 1, 1992, is amended effective December 31, 1992.
Repealed In Full effective February 1, 2012