Colorado 2024 Regular Session

Colorado House Bill HB1321 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	Second Regular Session
	2	+	Seventy-fourth General Assembly
	3	+	STATE OF COLORADO
	4	+	REREVISED
	5	+	This Version Includes All Amendments
	6	+	Adopted in the Second House
	7	+	LLS NO. 24-0711.01 Kristen Forrestal x4217
1	8		HOUSE BILL 24-1321
2		-	~~BY REPRESENTATIVE(S) Brown and Taggart, Amabile, Bird, Clifford,~~
3		-	~~Jodeh~~, ~~Marshall~~, ~~Ortiz, Titone, Velasco, McCluskie;~~
4		-	~~also SENATOR(S) Roberts and Hinrichsen, Kolker, Priola.~~
	9	+	House Committees Senate Committees
	10	+	Business Affairs & Labor Business, Labor, & Technology
	11	+	A BILL FOR AN ACT
5	12		C
6		-	ONCERNING ALIGNING THE COLORADO STATUTES WITH THE NATIONAL
7		-	ASSOCIATION OF INSURANCE COMMISSIONERS' FINANCIAL MODEL
8		-	LAWS
9		-	.
10		-
11		-	Be it enacted by the General Assembly of the State of Colorado:
12		-	SECTION 1. In Colorado Revised Statutes, 10-3-801, add (4.3),
13		-	(7.5), and (8.5) as follows:
14		-	10-3-801. Definitions. As used in this part 8, unless the context
15		-	otherwise requires:
	13	+	ONCERNING ALIGNING THE COLORADO STATUTES WITH THE101
	14	+	N
	15	+	ATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS'102
	16	+	FINANCIAL MODEL LAWS .103
	17	+	Bill Summary
	18	+	(Note: This summary applies to this bill as introduced and does
	19	+	not reflect any amendments that may be subsequently adopted. If this bill
	20	+	passes third reading in the house of introduction, a bill summary that
	21	+	applies to the reengrossed version of this bill will be available at
	22	+	http://leg.colorado.gov
	23	+	.)
	24	+	The bill updates Colorado state laws concerning insurance
	25	+	company holding systems to align with the National Association of
	26	+	Insurance Commissioners' model act. The changes include updating:
	27	+	! The registration requirements for the ultimate controlling
	28	+	person of each insurer by adding new filing requirements
	29	+	SENATE
	30	+	3rd Reading Unamended
	31	+	April 29, 2024
	32	+	SENATE
	33	+	2nd Reading Unamended
	34	+	April 26, 2024
	35	+	HOUSE
	36	+	3rd Reading Unamended
	37	+	March 11, 2024
	38	+	HOUSE
	39	+	Amended 2nd Reading
	40	+	March 8, 2024
	41	+	HOUSE SPONSORSHIP
	42	+	Brown and Taggart, Amabile, Bird, Clifford, Jodeh, Marshall, McCluskie, Ortiz, Titone,
	43	+	Velasco
	44	+	SENATE SPONSORSHIP
	45	+	Roberts and Hinrichsen, Kolker, Priola
	46	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	47	+	Capital letters or bold & italic numbers indicate new material to be added to existing law.
	48	+	Dashes through the words or numbers indicate deletions from existing law. to be included with the division of insurance's (division)
	49	+	existing registration requirements;
	50	+	! The standards for insurance holding company transactions
	51	+	subject to registration with the division;
	52	+	! Language concerning the confidential treatment of
	53	+	documents to include proprietary and trade secret
	54	+	documents and materials; and
	55	+	! The regulatory tools that the division may use for the
	56	+	regulation of insurance holding companies.
	57	+	The bill also makes technical amendments.
	58	+	Be it enacted by the General Assembly of the State of Colorado:1
	59	+	SECTION 1. In Colorado Revised Statutes, 10-3-801,
	60	+	add (4.3),2
	61	+	(7.5), and (8.5) as follows:3
	62	+	10-3-801. Definitions. As used in this part 8, unless the context4
	63	+	otherwise requires:5
	64	+	6
16	65		(4.3) "G
17		-	ROUP CAPITAL CALCULATION INSTRUCTIONS " MEANS THE
18		-	GROUP CAPITAL CALCULATION INSTRUCTIONS ADOPTED AND AMENDED BY
19		-	THE
20		-	NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS.
	66	+	ROUP CAPITAL CALCULATION INSTRUCTIONS " MEANS THE7
	67	+	GROUP CAPITAL CALCULATION INSTRUCTIONS ADOPTED AND AMENDED BY8
	68	+	THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS.9 10
21	69		(7.5) "NAIC
22		-	LIQUIDITY STRESS TEST FRAMEWORK " OR
23		-	"FRAMEWORK" MEANS THE NAIC PUBLICATION THAT INCLUDES A HISTORY
24		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
25		-	officers and the Governor. To determine whether the Governor has signed the bill
26		-	or taken other action on it, please consult the legislative status sheet, the legislative
27		-	history, or the Session Laws.
28		-	________
29		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
30		-	through words or numbers indicate deletions from existing law and such material is not part of
31		-	the act. OF THE NAIC'S DEVELOPMENT OF REGULATORY LIQUIDITY STRESS TESTING ,
32		-	THE SCOPE CRITERIA APPLICABLE FOR A SPECIFIC DATA YEAR , AND THE
33		-	LIQUIDITY STRESS TEST INSTRUCTIONS AND REPORTING TEMPLATES FOR A
34		-	SPECIFIC DATA YEAR
35		-	, AS ADOPTED BY THE NAIC, AND AS AMENDED FROM
36		-	TIME TO TIME BY THE
37		-	NAIC, IN ACCORDANCE WITH THE PROCEDURES
38		-	ADOPTED BY THE
39		-	NAIC.
	70	+	LIQUIDITY STRESS TEST FRAMEWORK " OR11
	71	+	"
	72	+	FRAMEWORK" MEANS THE NAIC PUBLICATION THAT INCLUDES A HISTORY12
	73	+	OF THE NAIC'S DEVELOPMENT OF REGULATORY LIQUIDITY STRESS13
	74	+	TESTING, THE SCOPE CRITERIA APPLICABLE FOR A SPECIFIC DATA YEAR ,14
	75	+	AND THE LIQUIDITY STRESS TEST INSTRUCTIONS AND REPORTING15
	76	+	TEMPLATES FOR A SPECIFIC DATA YEAR, AS ADOPTED BY THE NAIC, AND16
	77	+	AS AMENDED FROM TIME TO TIME BY THE NAIC, IN ACCORDANCE WITH17
	78	+	THE PROCEDURES ADOPTED BY THE NAIC.18
40	79		(8.5) "S
41		-	COPE CRITERIA" MEANS THE DESIGNATED EXPOSURE BASES ,
42		-	ALONG WITH MINIMUM MAGNITUDES OF EXPOSURE BASES FOR THE SPECIFIED
43		-	DATA YEAR
44		-	, USED TO ESTABLISH A PRELIMINARY LIST OF INSURERS
45		-	CONSIDERED SCOPED INTO THE
46		-	NAIC LIQUIDITY STRESS TEST FRAMEWORK
47		-	FOR THAT DATA YEAR
48		-	.
49		-	SECTION 2. In Colorado Revised Statutes, 10-3-804, amend (12)
50		-	as follows:
51		-	10-3-804. Registration of insurers. (12) (a) The ultimate
52		-	controlling person of every insurer subject to registration shall also file an
53		-	annual enterprise risk report. The report must, to the best of the ultimate
54		-	controlling person's knowledge and belief, identify the material risks within
55		-	the insurance holding company system that could pose enterprise risk to the
56		-	insurer. The controlling person shall file the report with the lead state
57		-	commissioner of the insurance holding company system as determined by
58		-	the procedures within the financial analysis handbook adopted by the NAIC.
	80	+	COPE CRITERIA" MEANS THE DESIGNATED EXPOSURE BASES,19
	81	+	ALONG WITH MINIMUM MAGNITUDES OF EXPOSURE BASES FOR THE20
	82	+	1321-2- SPECIFIED DATA YEAR, USED TO ESTABLISH A PRELIMINARY LIST OF1
	83	+	INSURERS CONSIDERED SCOPED INTO THE NAIC LIQUIDITY STRESS TEST2
	84	+	FRAMEWORK FOR THAT DATA YEAR .3
	85	+	SECTION 2. In Colorado Revised Statutes, 10-3-804, amend4
	86	+	(12) as follows:5
	87	+	10-3-804. Registration of insurers. (12) (a) The ultimate6
	88	+	controlling person of every insurer subject to registration shall also file7
	89	+	an annual enterprise risk report. The report must, to the best of the8
	90	+	ultimate controlling person's knowledge and belief, identify the material9
	91	+	risks within the insurance holding company system that could pose10
	92	+	enterprise risk to the insurer. The controlling person shall file the report11
	93	+	with the lead state commissioner of the insurance holding company12
	94	+	system as determined by the procedures within the financial analysis13
	95	+	handbook adopted by the NAIC.14
59	96		(b) E
60		-	XCEPT AS PROVIDED IN SUBSECTIONS (12)(b)(I) TO (12)(b)(IV)
61		-	AND (12)(c) TO (12)(e) OF THIS SECTION, THE ULTIMATE CONTROLLING
62		-	PERSON OF EACH INSURER SUBJECT TO REGISTRATION SHALL CONCURRENTLY
63		-	FILE WITH THE REGISTRATION AN ANNUAL GROUP CAPITAL CALCULATION AS
64		-	DIRECTED BY THE LEAD STATE COMMISSIONER
65		-	. THE REPORT MUST BE
66		-	COMPLETED IN ACCORDANCE WITH THE
67		-	NAIC GROUP CAPITAL CALCULATION
68		-	INSTRUCTIONS
69		-	, WHICH MAY PERMIT THE LEAD STATE COMMISSIONER TO
70		-	ALLOW A CONTROLLING PERSON THAT IS NOT THE ULTIMATE CONTROLLING
71		-	PERSON TO FILE THE GROUP CAPITAL CALCULATION
72		-	. THE REPORT MUST BE
73		-	FILED WITH THE LEAD STATE COMMISSIONER OF THE INSURANCE HOLDING
74		-	COMPANY SYSTEM AS DIRECTED BY THE LEAD STATE COMMISSIONER IN
75		-	ACCORDANCE WITH THE PROCEDURES WITHIN THE FINANCIAL ANALYSIS
76		-	HANDBOOK ADOPTED BY THE
77		-	NAIC. THE FOLLOWING INSURANCE HOLDING
78		-	COMPANY SYSTEMS ARE EXEMPT FROM FILING THE GROUP CAPITAL
79		-	CALCULATION
80		-	:
81		-	PAGE 2-HOUSE BILL 24-1321 (I) AN INSURANCE HOLDING COMPANY SYSTEM THAT HAS ONLY ONE
82		-	INSURER WITHIN ITS HOLDING COMPANY STRUCTURE
83		-	, THAT ONLY WRITES
84		-	BUSINESS
85		-	, AND IS ONLY LICENSED IN ITS DOMESTIC STATE AND ASSUMES NO
86		-	BUSINESS FROM ANY OTHER INSURER
87		-	;
	97	+	XCEPT AS PROVIDED IN SUBSECTIONS (12)(b)(I) TO15
	98	+	(12)(b)(IV)
	99	+	AND (12)(c) TO (12)(e) OF THIS SECTION, THE ULTIMATE16
	100	+	CONTROLLING PERSON OF EACH INSURER SUBJECT TO REGISTRATION SHALL17
	101	+	CONCURRENTLY FILE WITH THE REGISTRATION AN ANNUAL GROUP CAPITAL18
	102	+	CALCULATION AS DIRECTED BY THE LEAD STATE COMMISSIONER . THE19
	103	+	REPORT MUST BE COMPLETED IN ACCOR DANCE WITH THE NAIC GROUP20
	104	+	CAPITAL CALCULATION INSTRUCTIONS , WHICH MAY PERMIT THE LEAD21
	105	+	STATE COMMISSIONER TO ALLOW A CONTROLLING PERSON THAT IS NOT22
	106	+	THE ULTIMATE CONTROLLING PERSON TO FILE THE GROUP CAPITAL23
	107	+	CALCULATION. THE REPORT MUST BE FILED WITH THE LEAD STATE24
	108	+	COMMISSIONER OF THE INSURANCE HOLDING COMPANY SYSTEM AS25
	109	+	DIRECTED BY THE LEAD STATE COMMISSIONER IN ACCORDANCE WITH THE26
	110	+	PROCEDURES WITHIN THE FINANCIAL ANALYSIS HANDBOOK ADOPTED BY27
	111	+	1321
	112	+	-3- THE NAIC. THE FOLLOWING INSURANCE HOLDING COMPANY SYSTEMS ARE1
	113	+	EXEMPT FROM FILING THE GROUP CAPITAL CALCULATION :2
	114	+	(I) A
	115	+	N INSURANCE HOLDING COMPANY SYSTEM THAT HAS ONLY3
	116	+	ONE INSURER WITHIN ITS HOLDING COMPANY STRUCTURE , THAT ONLY4
	117	+	WRITES BUSINESS, AND IS ONLY LICENSED IN ITS DOMESTIC STATE AND5
	118	+	ASSUMES NO BUSINESS FROM ANY OTHER INSURER ;6
88	119		(II) A
89		-	N INSURANCE HOLDING COMPANY SYSTEM THAT IS REQUIRED
90		-	TO PERFORM A GROUP CAPITAL CALCULATION SPECIFIED BY THE
91		-	UNITED
92		-	STATES FEDERAL RESERVE BOARD . THE LEAD STATE COMMISSIONER SHALL
93		-	REQUEST THE CALCULATION FROM THE FEDERAL RESERVE BOARD UNDER THE
94		-	TERMS OF INFORMATION SHARING AGREEMENTS IN EFFECT
95		-	. IF THE FEDERAL
96		-	RESERVE BOARD CANNOT SHARE THE CALCULATION WITH THE LEAD STATE
97		-	COMMISSIONER
98		-	, THE INSURANCE HOLDING COMPANY SYSTEM IS NOT EXEMPT
99		-	FROM THE GROUP CAPITAL CALCULATION FILING
100		-	.
	120	+	N INSURANCE HOLDING COMPANY SYSTEM THAT IS REQUIRED7
	121	+	TO PERFORM A GROUP CAPITAL CALCULATION SPECIFIED BY THE UNITED8
	122	+	S
	123	+	TATES FEDERAL RESERVE BOARD. THE LEAD STATE COMMISSIONER SHALL9
	124	+	REQUEST THE CALCULATION FROM THE FEDERAL RESERVE BOARD UNDER10
	125	+	THE TERMS OF INFORMATION SHARING AGREEMENTS IN EFFECT . IF THE11
	126	+	FEDERAL RESERVE BOARD CANNOT SHARE THE CALCULATION WITH THE12
	127	+	LEAD STATE COMMISSIONER, THE INSURANCE HOLDING COMPANY SYSTEM13
	128	+	IS NOT EXEMPT FROM THE GROUP CAPITAL CALCULATION FILING .14
101	129		(III) A
102		-	N INSURANCE HOLDING COMPANY SYSTEM WHOSE
103		-	NON
104		-	-UNITED STATES GROUP-WIDE SUPERVISOR IS LOCATED WITHIN A
105		-	RECIPROCAL JURISDICTION AS DESCRIBED IN SECTION
106		-	10-3-702 THAT
107		-	RECOGNIZES THE
108		-	UNITED STATES' STATE REGULATORY APPROACH TO GROUP
109		-	SUPERVISION AND GROUP CAPITAL
110		-	;
	130	+	N INSURANCE HOLDING COMPANY SYSTEM WHOSE15
	131	+	NON-UNITED STATES GROUP-WIDE SUPERVISOR IS LOCATED WITHIN A16
	132	+	RECIPROCAL JURISDICTION AS DESCRIBED IN SECTION 10-3-702 THAT17
	133	+	RECOGNIZES THE UNITED STATES' STATE REGULATORY APPROACH TO18
	134	+	GROUP SUPERVISION AND GROUP CAPITAL ;19
111	135		(IV) A
112		-	N INSURANCE HOLDING COMPANY SYSTEM :
	136	+	N INSURANCE HOLDING COMPANY SYSTEM :20
113	137		(A) T
114		-	HAT PROVIDES INFORMATION TO THE LEAD STATE
115		-	COMMISSIONER THAT MEETS THE RE QUIREMENTS FOR ACCREDITATION
116		-	UNDER THE
117		-	NAIC FINANCIAL STANDARDS AND ACCREDITATION PROGRAM ,
118		-	EITHER DIRECTLY OR INDIRECTLY THROUGH THE GROUP -WIDE SUPERVISOR,
119		-	WHO HAS DETERMINED SUCH INFORMATION IS SATISFACTORY TO ALLOW THE
120		-	LEAD STATE COMMISSIONER TO COMPLY WITH THE
121		-	NAIC GROUP
122		-	SUPERVISION APPROACH
123		-	, AS DETAILED IN THE NAIC FINANCIAL ANALYSIS
124		-	HANDBOOK
125		-	; AND
126		-	(B) WHOSE NON-UNITED STATES GROUP-WIDE SUPERVISOR THAT IS
127		-	NOT IN A RECIPROCAL JURISDICTION RECOGNIZES AND ACCEPTS
128		-	, AS SPECIFIED
129		-	BY THE LEAD STATE COMMISSIONER IN REGULATION
130		-	, THE GROUP CAPITAL
131		-	CALCULATION AS THE WORLD
132		-	-WIDE GROUP CAPITAL ASSESSMENT FOR
133		-	UNITED STATES INSURANCE GROUPS THAT OPERATE IN THAT JURISDICTION .
	138	+	HAT PROVIDES INFORMATION TO THE LEAD STATE21
	139	+	COMMISSIONER THAT MEETS THE REQUIREMENTS FOR ACCREDITATION22
	140	+	UNDER THE NAIC FINANCIAL STANDARDS AND ACCREDITATION PROGRAM ,23
	141	+	EITHER DIRECTLY OR INDIRECTLY THROUGH THE GROUP -WIDE SUPERVISOR,24
	142	+	WHO HAS DETERMINED SUCH INFORMATION IS SATISFACTORY TO ALLOW25
	143	+	THE LEAD STATE COMMISSIONER TO COMPLY WITH THE NAIC GROUP26
	144	+	SUPERVISION APPROACH, AS DETAILED IN THE NAIC FINANCIAL ANALYSIS27
	145	+	1321
	146	+	-4- HANDBOOK; AND1
	147	+	(B) W
	148	+	HOSE NON-UNITED STATES GROUP-WIDE SUPERVISOR THAT2
	149	+	IS NOT IN A RECIPROCAL JURISDICTION RECOGNIZES AND ACCEPTS , AS3
	150	+	SPECIFIED BY THE LEAD STATE COMMISSIONER IN REGULATION , THE GROUP4
	151	+	CAPITAL CALCULATION AS THE WORLD -WIDE GROUP CAPITAL ASSESSMENT5
	152	+	FOR UNITED STATES INSURANCE GROUPS THAT OPERATE IN THAT6
	153	+	JURISDICTION.7
134	154		(c) N
135		-	OTWITHSTANDING SUBSECTIONS (12)(b)(III) AND (12)(b)(IV)
136		-	OF THIS SECTION AND THIS SUBSECTION (12)(c), THE LEAD STATE
137		-	COMMISSIONER SHALL REQUIRE THE GROUP CAPITAL CALCULATION FOR
138		-	PAGE 3-HOUSE BILL 24-1321 UNITED STATES OPERATIONS OF ANY NON -UNITED-STATES-BASED
139		-	INSURANCE HOLDING COMPANY SYSTEM WHERE
140		-	, AFTER ANY NECESSARY
141		-	CONSULTATION WITH OTHER SUPERVISORS OR OFFICIALS
142		-	, IT IS DEEMED
143		-	APPROPRIATE BY THE LEAD STATE COMMISSIONER FOR PRUDENTIAL
144		-	OVERSIGHT AND SOLVENCY MONITORING PURPOSES OR FOR ENSURING THE
145		-	COMPETITIVENESS OF THE INSURANCE MARKETPLACE
146		-	.
	155	+	OTWITHSTANDING SUBSECTIONS (12)(b)(III) AND8
	156	+	(12)(b)(IV)
	157	+	OF THIS SECTION AND THIS SUBSECTION (12)(c), THE LEAD9
	158	+	STATE COMMISSIONER SHALL REQUIRE THE GROUP CAPITAL CALCULATION10
	159	+	FOR UNITED STATES OPERATIONS OF ANY NON -UNITED-STATES-BASED11
	160	+	INSURANCE HOLDING COMPANY SYSTEM WHERE , AFTER ANY NECESSARY12
	161	+	CONSULTATION WITH OTHER SUPERVISORS OR OFFICIALS , IT IS DEEMED13
	162	+	APPROPRIATE BY THE LEAD STATE COMMISSIONER FOR PRUDENTIAL14
	163	+	OVERSIGHT AND SOLVENCY MONITORING PURPOSES OR FOR ENSURING THE15
	164	+	COMPETITIVENESS OF THE INSURANCE MARKETPLACE .16
147	165		(d) N
148		-	OTWITHSTANDING THE EXEMPTIONS FROM FILING THE GROUP
149		-	CAPITAL CALCULATION STATED IN SUBSECTIONS
150		-	(12)(b)(I) TO (12)(b)(IV)
151		-	OF THIS SECTION, THE LEAD STATE COMMISSIONER MAY EXEMPT THE
152		-	ULTIMATE CONTROLLING PERSON FROM FILING THE ANNUAL GROUP CAPITAL
153		-	CALCULATION OR TO ACCEPT A LIMITED GROUP CAPITAL FILING OR REPORT
154		-	IN ACCORDANCE WITH CRITERIA AS SPECIFIED BY THE REGULATIONS
155		-	PROMULGATED BY THE LEAD STATE COMMISSIONER
156		-	.
	166	+	OTWITHSTANDING THE EXEMPTIONS FROM FILING THE GROUP17
	167	+	CAPITAL CALCULATION STATED IN SUBSECTIONS (12)(b)(I) TO (12)(b)(IV)18
	168	+	OF THIS SECTION, THE LEAD STATE COMMISSIONER MAY EXEMPT THE19
	169	+	ULTIMATE CONTROLLING PERSON FROM FILING THE ANNUAL GROUP20
	170	+	CAPITAL CALCULATION OR TO ACCEPT A LIMITED GROUP CAPITAL FILING21
	171	+	OR REPORT IN ACCORDANCE WITH CRITERIA AS SPECIFIED BY THE22
	172	+	REGULATIONS PROMULGATED BY THE LEAD STATE COMMISSIONER .23
157	173		(e) I
158		-	F THE LEAD STATE COMMISSIONER DETERMINES THAT AN
159		-	INSURANCE HOLDING COMPANY SYSTEM NO LONGER MEETS ONE OR MORE OF
160		-	THE REQUIREMENTS FOR AN EXEMPTION FROM FILING THE GROUP CAPITAL
161		-	CALCULATION UNDER THIS SECTION
162		-	, THE INSURANCE HOLDING COMPANY
163		-	SYSTEM MUST FILE THE GROUP CAPITAL CALCULATION AT THE NEXT ANNUAL
164		-	FILING DATE UNLESS GIVEN AN EXTENSION BY THE LEAD STATE
165		-	COMMISSIONER BASED ON REASONABLE GROUNDS SHOWN
166		-	.
	174	+	F THE LEAD STATE COMMISSIONER DETERMINES THAT AN24
	175	+	INSURANCE HOLDING COMPANY SYSTEM NO LONGER MEETS ONE OR MORE25
	176	+	OF THE REQUIREMENTS FOR AN EXEMPTION FROM FILING THE GROUP26
	177	+	CAPITAL CALCULATION UNDER THIS SECTION , THE INSURANCE HOLDING27
	178	+	1321
	179	+	-5- COMPANY SYSTEM MUST FILE THE GROUP CAPITAL CALCULATION AT THE1
	180	+	NEXT ANNUAL FILING DATE UNLESS GIVEN AN EXTENSION BY THE LEAD2
	181	+	STATE COMMISSIONER BASED ON REASONABLE GROUNDS SHOWN .3
167	182		(f) (I) T
168		-	HE ULTIMATE CONTROLLING PERSON OF AN INSURER SUBJECT
169		-	TO REGISTRATION AND ALSO SCOPED INTO THE
170		-	NAIC LIQUIDITY STRESS TEST
171		-	FRAMEWORK SHALL FILE THE RESULTS OF A SPECIFIC YEAR
172		-	'S LIQUIDITY
173		-	STRESS TEST
174		-	. THE FILING MUST BE MADE TO THE LEAD STATE COMMISSIONER
175		-	OF THE INSURANCE HOLDING COMPANY SYSTEM AS DETERMINED BY THE
176		-	PROCEDURES WITHIN THE FINANCIAL ANALYSIS HANDBOOK ADOPTED BY THE
177		-	NAIC.
	183	+	HE ULTIMATE CONTROLLING PERSON OF AN INSURER4
	184	+	SUBJECT TO REGISTRATION AND ALSO SCOPED INTO THE NAIC LIQUIDITY5
	185	+	STRESS TEST FRAMEWORK SHALL FILE THE RESULTS OF A SPECIFIC YEAR 'S6
	186	+	LIQUIDITY STRESS TEST. THE FILING MUST BE MADE TO THE LEAD STATE7
	187	+	COMMISSIONER OF THE INSURANCE HOLDING COMPANY SYSTEM AS8
	188	+	DETERMINED BY THE PROCEDURES WITHIN THE FINANCIAL ANALYSIS9
	189	+	HANDBOOK ADOPTED BY THE NAIC.10
178	190		(II) (A) T
179		-	HE NAIC LIQUIDITY STRESS TEST FRAMEWORK INCLUDES
180		-	SCOPE CRITERIA APPLICABLE TO A SPECIFIC DATA YEAR
181		-	. AT LEAST
182		-	ANNUALLY
183		-	, THE FINANCIAL STABILITY TASK FORCE OR ITS SUCCESSOR SHALL
184		-	REVIEW THE SCOPE CRITERIA
185		-	. ANY CHANGE TO THE NAIC LIQUIDITY STRESS
186		-	TEST FRAMEWORK OR TO THE DATA YEAR FOR WHICH THE SCOPE CRITERIA
187		-	ARE TO BE MEASURED TAKES EFFECT ON
188		-	JANUARY 1 OF THE YEAR
189		-	FOLLOWING THE CALENDAR YEAR WHEN SUCH CHANGES ARE ADOPTED
190		-	.
191		-	I
192		-	NSURERS MEETING AT LEAST ONE THRESHOLD OF THE SCOPE CRITERIA ARE
193		-	CONSIDERED SCOPED INTO THE
194		-	NAIC LIQUIDITY STRESS TEST FRAMEWORK
195		-	PAGE 4-HOUSE BILL 24-1321 FOR THE SPECIFIED DATA YEAR UNLESS THE LEAD STATE COMMISSIONER , IN
196		-	CONSULTATION WITH THE
197		-	NAIC FINANCIAL STABILITY TASK FORCE OR ITS
198		-	SUCCESSOR
199		-	, DETERMINES THE INSURER SHOULD NOT BE SCOPED INTO THE
200		-	NAIC LIQUIDITY STRESS TEST FRAMEWORK FOR THAT DATA YEAR .
201		-	S
202		-	IMILARLY, INSURERS THAT DO NOT TRIGGER AT LEAST ONE THRESHOLD OF
203		-	THE SCOPE CRITERIA ARE CONSIDERED SCOPED OUT OF THE
204		-	NAIC LIQUIDITY
205		-	STRESS TEST FRAMEWORK FOR THE SPECIFIED DATA YEAR
206		-	, UNLESS THE LEAD
207		-	STATE COMMISSIONER
208		-	, IN CONSULTATION WITH THE NAIC FINANCIAL
209		-	STABILITY TASK FORCE OR ITS SUCCESSOR
210		-	, DETERMINES THE INSURER
211		-	SHOULD BE SCOPED INTO THE FRAMEWORK FOR THAT DATA YEAR
212		-	.
	191	+	HE NAIC LIQUIDITY STRESS TEST FRAMEWORK INCLUDES11
	192	+	SCOPE CRITERIA APPLICABLE TO A SPECIFIC DATA YEAR . AT LEAST12
	193	+	ANNUALLY, THE FINANCIAL STABILITY TASK FORCE OR ITS SUCCESSOR13
	194	+	SHALL REVIEW THE SCOPE CRITERIA . ANY CHANGE TO THE NAIC14
	195	+	LIQUIDITY STRESS TEST FRAMEWORK OR TO THE DATA YEAR FOR WHICH15
	196	+	THE SCOPE CRITERIA ARE TO BE MEASURED TAKES EFFECT ON JANUARY 116
	197	+	OF THE YEAR FOLLOWING THE CALENDAR YEAR WHEN SUCH CHANGES ARE17
	198	+	ADOPTED. INSURERS MEETING AT LEAST ONE THRESHOLD OF THE SCOPE18
	199	+	CRITERIA ARE CONSIDERED SCOPED INTO THE NAIC LIQUIDITY STRESS19
	200	+	TEST FRAMEWORK FOR THE SPECIFIED DATA YEAR UNLESS THE LEAD STATE20
	201	+	COMMISSIONER, IN CONSULTATION WITH THE NAIC FINANCIAL STABILITY21
	202	+	TASK FORCE OR ITS SUCCESSOR, DETERMINES THE INSURER SHOULD NOT22
	203	+	BE SCOPED INTO THE NAIC LIQUIDITY STRESS TEST FRAMEWORK FOR THAT23
	204	+	DATA YEAR. SIMILARLY, INSURERS THAT DO NOT TRIGGER AT LEAST ONE24
	205	+	THRESHOLD OF THE SCOPE CRITERIA ARE CONSIDERED SCOPED OUT OF THE25
	206	+	NAIC
	207	+	LIQUIDITY STRESS TEST FRAMEWORK FOR THE SPECIFIED DATA26
	208	+	YEAR, UNLESS THE LEAD STATE COMMISSIONER , IN CONSULTATION WITH27
	209	+	1321
	210	+	-6- THE NAIC FINANCIAL STABILITY TASK FORCE OR ITS SUCCESSOR ,1
	211	+	DETERMINES THE INSURER SHOULD BE SCOPED INTO THE FRAMEWORK FOR2
	212	+	THAT DATA YEAR.3
213	213		(B) A
214		-	S PART OF THE DETERMINATION FOR AN INSURER , THE LEAD
215		-	STATE INSURANCE COMMISSIONER
216		-	, IN CONSULTATION WITH THE FINANCIAL
217		-	STABILITY TASK FORCE OR ITS SUCCESSOR
218		-	, SHALL ASSESS A REGULATOR'S
219		-	DESIRE TO AVOID HAVING INSURERS SCOPED IN AND OUT OF THE
220		-	NAIC
221		-	LIQUIDITY STRESS TEST FRAMEWORK ON A FREQUENT BASIS .
	214	+	S PART OF THE DETERMINATION FOR AN INSURER , THE LEAD4
	215	+	STATE INSURANCE COMMISSIONER , IN CONSULTATION WITH THE FINANCIAL5
	216	+	STABILITY TASK FORCE OR ITS SUCCESSOR, SHALL ASSESS A REGULATOR'S6
	217	+	DESIRE TO AVOID HAVING INSURERS SCOPED IN AND OUT OF THE NAIC7
	218	+	LIQUIDITY STRESS TEST FRAMEWORK ON A FREQUENT BASIS .8
222	219		(III) T
223		-	HE PERFORMANCE OF, AND FILING OF THE RESULTS FROM, A
224		-	SPECIFIC YEAR
225		-	'S LIQUIDITY STRESS TEST MUST COMPLY WITH THE NAIC
226		-	LIQUIDITY STRESS TEST FRAMEWORK 'S INSTRUCTIONS AND REPORTING
227		-	TEMPLATES FOR THAT YEAR AND ANY LEAD STATE INSURANCE
228		-	COMMISSIONER DETERMINATIONS
229		-	, IN CONJUNCTION WITH THE NAIC
230		-	FINANCIAL STABILITY TASK FORCE OR ITS SUCCESSOR, PROVIDED WITHIN THE
231		-	FRAMEWORK
232		-	.
233		-	SECTION 3. In Colorado Revised Statutes, 10-3-805, amend
234		-	(1)(a)(V); and add (1)(a)(VII), (1)(a)(VIII), (1)(a)(IX), (1)(h), and (4) as
235		-	follows:
236		-	10-3-805. Standards and management of an insurer within an
237		-	insurance holding company system - rules. (1) Transactions within an
238		-	insurance holding company system. (a) Transactions within an insurance
239		-	holding company system to which an insurer subject to registration is a
240		-	party are subject to the following standards:
241		-	(V) The books, accounts, and records of each party to all such
242		-	transactions shall be so maintained as to clearly and accurately disclose the
243		-	nature and details of the transactions, including such accounting
244		-	information as is necessary to support the reasonableness of the charges or
245		-	fees to the respective parties; and
246		-	PAGE 5-HOUSE BILL 24-1321 (VII) (A) IF AN INSURER SUBJECT TO THIS ARTICLE 3 IS DEEMED BY
247		-	THE COMMISSIONER TO BE IN A HAZARDOUS FINANCIAL CONDITION
248		-	, AS
249		-	DEFINED BY RULE OF THE COMMISSIONER
250		-	, OR A CONDITION THAT WOULD BE
251		-	GROUNDS FOR SUPERVISION
252		-	, CONSERVATION, OR A DELINQUENCY
253		-	PROCEEDING
254		-	, THEN THE COMMISSIONER MAY REQUIRE THE INSURER TO
255		-	SECURE AND MAINTAIN EITHER A DEPOSIT
256		-	, HELD BY THE COMMISSIONER, OR
257		-	A BOND
258		-	, AS DETERMINED BY THE INSURER AT THE INSURER 'S DISCRETION,
259		-	FOR THE PROTECTION OF THE INSURER FOR THE DURATION OF THE CONTRACT
260		-	OR AGREEMENT
261		-	, OR THE EXISTENCE OF THE CONDITION FOR WHICH THE
262		-	COMMISSIONER REQUIRED THE DEPOSIT OR THE BOND
263		-	.
	220	+	HE PERFORMANCE OF, AND FILING OF THE RESULTS FROM, A9
	221	+	SPECIFIC YEAR'S LIQUIDITY STRESS TEST MUST COMPLY WITH THE NAIC10
	222	+	LIQUIDITY STRESS TEST FRAMEWORK 'S INSTRUCTIONS AND REPORTING11
	223	+	TEMPLATES FOR THAT YEAR AND ANY LEAD STATE INSURANCE12
	224	+	COMMISSIONER DETERMINATIONS , IN CONJUNCTION WITH THE NAIC13
	225	+	FINANCIAL STABILITY TASK FORCE OR ITS SUCCESSOR , PROVIDED WITHIN14
	226	+	THE FRAMEWORK.15
	227	+	SECTION 3. In Colorado Revised Statutes, 10-3-805, amend16
	228	+	(1)(a)(V); and add (1)(a)(VII), (1)(a)(VIII), (1)(a)(IX), (1)(h), and (4) as17
	229	+	follows:18
	230	+	10-3-805. Standards and management of an insurer within an19
	231	+	insurance holding company system - rules. (1) Transactions within20
	232	+	an insurance holding company system. (a) Transactions within an21
	233	+	insurance holding company system to which an insurer subject to22
	234	+	registration is a party are subject to the following standards:23
	235	+	(V) The books, accounts, and records of each party to all such24
	236	+	transactions shall be so maintained as to clearly and accurately disclose25
	237	+	the nature and details of the transactions, including such accounting26
	238	+	information as is necessary to support the reasonableness of the charges27
	239	+	1321
	240	+	-7- or fees to the respective parties; and1
	241	+	(VII) (A) I
	242	+	F AN INSURER SUBJECT TO THIS ARTICLE 3 IS DEEMED BY2
	243	+	THE COMMISSIONER TO BE IN A HAZARDOUS FINANCIAL
	244	+	CONDITION, AS3
	245	+	DEFINED BY RULE OF THE COMMISSIONER , OR A CONDITION THAT WOULD4
	246	+	BE GROUNDS FOR SUPERVISION , CONSERVATION, OR A DELINQUENCY5
	247	+	PROCEEDING, THEN THE COMMISSIONER MAY REQUIRE THE INSURER TO6
	248	+	SECURE AND MAINTAIN EITHER A DEPOSIT , HELD BY THE COMMISSIONER,7
	249	+	OR A BOND, AS DETERMINED BY THE INSURER AT THE INSURER 'S8
	250	+	DISCRETION, FOR THE PROTECTION OF THE INSURER FOR THE DURATION OF9
	251	+	THE CONTRACT OR AGREEMENT , OR THE EXISTENCE OF THE CONDITION FOR10
	252	+	WHICH THE COMMISSIONER REQUIRED THE DEPOSIT OR THE BOND .11
264	253		(B) I
265		-	N DETERMINING WHETHER A DEPOSIT OR A BOND IS REQUIRED ,
266		-	THE COMMISSIONER SHALL CONSIDER WHETHER CONCERNS EXIST WITH
267		-	RESPECT TO THE AFFILIATED PERSON
268		-	'S ABILITY TO FULFILL A CONTRACT OR
269		-	AGREEMENT IF THE INSURER WERE TO BE PUT INTO LIQUIDATION
270		-	. ONCE THE
271		-	INSURER IS DEEMED TO BE IN A HAZARDOUS FINANCIAL CONDITION OR A
272		-	CONDITION THAT WOULD BE GROUNDS FOR SUPERVISION
273		-	, CONSERVATION, OR
274		-	A DELINQUENCY PROCEEDING
275		-	, AND A DEPOSIT OR BOND IS NECESSARY, THE
276		-	COMMISSIONER MAY DETERMINE THE AMOUNT OF THE DEPOSIT OR BOND
277		-	,
278		-	NOT TO EXCEED THE VALUE OF A CONTRACT OR AGREEMENT IN ANY ONE
279		-	YEAR
280		-	, AND WHETHER SUCH DEPOSIT OR BOND SHOULD BE REQUIRED FOR A
281		-	SINGLE CONTRACT
282		-	, MULTIPLE CONTRACTS, OR A CONTRACT ONLY WITH A
283		-	SPECIFIC PERSON
284		-	.
	254	+	N DETERMINING WHETHER A DEPOSIT OR A BOND IS REQUIRED ,12
	255	+	THE COMMISSIONER SHALL CONSIDER WHETHER CONCERNS EXIST WITH13
	256	+	RESPECT TO THE AFFILIATED PERSON'S ABILITY TO FULFILL A CONTRACT OR14
	257	+	AGREEMENT IF THE INSURER WERE TO BE PUT INTO LIQUIDATION . ONCE15
	258	+	THE INSURER IS DEEMED TO BE IN A HAZARDOUS FINANCIAL CONDITION OR16
	259	+	A CONDITION THAT WOULD BE GR OUNDS FOR SUPERVISION ,17
	260	+	CONSERVATION, OR A DELINQUENCY PROCEEDING , AND A DEPOSIT OR18
	261	+	BOND IS NECESSARY, THE COMMISSIONER MAY DETERMINE THE AMOUNT19
	262	+	OF THE DEPOSIT OR BOND, NOT TO EXCEED THE VALUE OF A CONTRACT OR20
	263	+	AGREEMENT IN ANY ONE YEAR , AND WHETHER SUCH DEPOSIT OR BOND21
	264	+	SHOULD BE REQUIRED FOR A SINGLE CONTRACT , MULTIPLE CONTRACTS, OR22
	265	+	A CONTRACT ONLY WITH A SPECIFIC PERSON .23
285	266		(VIII) T
286		-	HE RECORDS AND DATA OF THE INSURER HELD BY AN
287		-	AFFILIATE ARE AND REMAIN THE PROPERTY OF THE INSURER AND ARE
288		-	SUBJECT TO CONTROL OF THE INSURER
289		-	. THE AFFILIATE SHALL ENSURE THAT
290		-	THE RECORDS AND DATA ARE IDENTIFIABLE AND ARE SEGREGATED OR
291		-	READILY CAPABLE OF SEGREGATION
292		-	, AT NO ADDITIONAL COST TO THE
293		-	INSURER
294		-	, FROM ALL OTHER PERSONS' RECORDS AND DATA. THIS INCLUDES
295		-	ALL RECORDS AND DATA THAT ARE OTHERWISE THE PROPERTY OF THE
296		-	INSURER
297		-	, IN WHATEVER FORM MAINTAINED , INCLUDING CLAIMS AND CLAIM
298		-	FILES
299		-	, POLICYHOLDER LISTS, APPLICATION FILES, LITIGATION FILES, PREMIUM
300		-	RECORDS
301		-	, RATE BOOKS, UNDERWRITING MANUALS , PERSONNEL RECORDS,
302		-	FINANCIAL RECORDS, OR SIMILAR RECORDS WITHIN THE POSSESSION ,
303		-	CUSTODY, OR CONTROL OF THE AFFILIATE. AT THE REQUEST OF THE INSURER,
304		-	THE AFFILIATE SHALL PERMIT THE RECEIVER TO OBTAIN A COMPLETE SET OF
305		-	ALL RECORDS OF ANY TYPE THAT PERTAIN TO THE INSURER
306		-	'S BUSINESS,
307		-	OBTAIN ACCESS TO THE OPERATING SYSTEMS ON WHICH THE DATA IS
308		-	MAINTAINED
309		-	, OBTAIN THE SOFTWARE THAT RUNS THE OPERATING SYSTEMS
310		-	PAGE 6-HOUSE BILL 24-1321 EITHER THROUGH ASSUMPTION OF LICENSING AGREEMENTS OR OTHERWISE ,
311		-	AND RESTRICT THE USE OF THE DATA BY THE AFFILIATE IF THE RECEIVER OR
312		-	THE AFFILIATE IS NOT OPERATING THE INSURER
313		-	'S BUSINESS. THE AFFILIATE
314		-	SHALL PROVIDE A WAIVER OF ANY LANDLORD LIEN OR OTHER ENCUMBRANCE
315		-	TO GIVE THE INSURER ACCESS TO ALL RECORDS AND DATA IN THE EVENT OF
316		-	THE AFFILIATE
317		-	'S DEFAULT UNDER A LEASE OR OTHER AGREEMENT .
	267	+	HE RECORDS AND DATA OF THE INSURER HELD BY AN24
	268	+	AFFILIATE ARE AND REMAIN THE PROPERTY OF THE INSURER AND ARE25
	269	+	SUBJECT TO CONTROL OF THE INSURER . THE AFFILIATE SHALL ENSURE26
	270	+	THAT THE RECORDS AND DATA ARE IDENTIFIABLE AND ARE SEGREGATED27
	271	+	1321
	272	+	-8- OR READILY CAPABLE OF SEGREGATION , AT NO ADDITIONAL COST TO THE1
	273	+	INSURER, FROM ALL OTHER PERSONS' RECORDS AND DATA. THIS INCLUDES2
	274	+	ALL RECORDS AND DATA THAT ARE OTHERWISE THE PROPERTY OF THE3
	275	+	INSURER, IN WHATEVER FORM MAINTAINED , INCLUDING CLAIMS AND4
	276	+	CLAIM FILES, POLICYHOLDER LISTS, APPLICATION FILES, LITIGATION FILES,5
	277	+	PREMIUM RECORDS, RATE BOOKS, UNDERWRITING MANUALS , PERSONNEL6
	278	+	RECORDS, FINANCIAL RECORDS, OR SIMILAR RECORDS WITHIN THE7
	279	+	POSSESSION, CUSTODY, OR CONTROL OF THE AFFILIATE. AT THE REQUEST8
	280	+	OF THE INSURER, THE AFFILIATE SHALL PERMIT THE RECEIVER TO OBTAIN9
	281	+	A COMPLETE SET OF ALL RECORDS OF ANY TYPE THAT PERTAIN TO THE10
	282	+	INSURER'S BUSINESS, OBTAIN ACCESS TO THE OPERATING SYSTEMS ON11
	283	+	WHICH THE DATA IS MAINTAINED, OBTAIN THE SOFTWARE THAT RUNS THE12
	284	+	OPERATING SYSTEMS EITHER THROUGH ASSUMPTION OF LICENSING13
	285	+	AGREEMENTS OR OTHERWISE , AND RESTRICT THE USE OF THE DATA BY THE14
	286	+	AFFILIATE IF THE RECEIVER OR THE AFFILIATE IS NOT OPERATING THE15
	287	+	INSURER'S BUSINESS. THE AFFILIATE SHALL PROVIDE A WAIVER OF ANY16
	288	+	LANDLORD LIEN OR OTHER ENCUMBRANCE TO GIVE THE INSURER ACCESS17
	289	+	TO ALL RECORDS AND DATA IN THE EVENT OF THE AFFILIATE 'S DEFAULT18
	290	+	UNDER A LEASE OR OTHER AGREEMENT .19
318	291		(IX) A
319		-	PREMIUM OR OTHER MONEY BELONGING TO THE INSURER
320		-	THAT IS COLLECTED BY OR HELD BY AN AFFILIATE IS THE EXCLUSIVE
321		-	PROPERTY OF THE INSURER AND IS SUBJECT TO THE CONTROL OF THE
322		-	INSURER
323		-	. ANY RIGHT OF OFFSET IN THE EVENT AN INSURER IS PLACED INTO
324		-	RECEIVERSHIP IS SUBJECT TO PART
325		-	5 OF THIS ARTICLE 3.
	292	+	PREMIUM OR OTHER MONEY BELONGING TO THE INSURER20
	293	+	THAT IS COLLECTED BY OR HELD BY AN AFFILIATE IS THE EXCLUSIVE21
	294	+	PROPERTY OF THE INSURER AND IS SUBJECT TO THE CONTROL OF THE22
	295	+	INSURER. ANY RIGHT OF OFFSET IN THE EVENT AN INSURER IS PLACED INTO23
	296	+	RECEIVERSHIP IS SUBJECT TO PART 5 OF THIS ARTICLE 3.24
326	297		(h) (I) A
327		-	N AFFILIATE THAT IS PARTY TO AN AGREEMENT OR
328		-	CONTRACT WITH A DOMESTIC INSURER THAT IS SUBJECT TO SUBSECTION
329		-	(1)(b)(IV) OF THIS SECTION IS SUBJECT TO THE JURISDICTION OF ANY
330		-	SUPERVISION
331		-	, SEIZURE, CONSERVATORSHIP, OR RECEIVERSHIP PROCEEDINGS
332		-	AGAINST THE INSURER AND TO THE AUTHORITY OF ANY SUPERVISOR
333		-	,
334		-	CONSERVATOR, REHABILITATOR, OR LIQUIDATOR FOR THE INSURER
335		-	APPOINTED PURSUANT TO SUPERVISION AND RECEIVERSHIP ACTS FOR THE
336		-	PURPOSE OF INTERPRETING
337		-	, ENFORCING, AND OVERSEEING THE AFFILIATE'S
338		-	OBLIGATIONS UNDER THE AGREEMENT OR CONTRACT TO PERFORM SERVICES
339		-	FOR THE INSURER THAT
340		-	:
	298	+	N AFFILIATE THAT IS PARTY TO AN AGREEMENT OR25
	299	+	CONTRACT WITH A DOMESTIC INSURER THAT IS SUBJECT TO SUBSECTION26
	300	+	(1)(b)(IV)
	301	+	OF THIS SECTION IS SUBJECT TO THE JURISDICTION OF ANY27
	302	+	1321
	303	+	-9- SUPERVISION, SEIZURE, CONSERVATORSHIP , OR RECEIVERSHIP1
	304	+	PROCEEDINGS AGAINST THE INSURER AND TO THE AUTHORITY OF ANY2
	305	+	SUPERVISOR, CONSERVATOR, REHABILITATOR, OR LIQUIDATOR FOR THE3
	306	+	INSURER APPOINTED PURSUANT TO SUPERVISION AND RECEIVERSHIP ACTS4
	307	+	FOR THE PURPOSE OF INTERPRETING, ENFORCING, AND OVERSEEING THE5
	308	+	AFFILIATE'S OBLIGATIONS UNDER THE AGREEMENT OR CONTRACT TO6
	309	+	PERFORM SERVICES FOR THE INSURER THAT :7
341	310		(A) A
342		-	RE AN INTEGRAL PART OF THE INSURER 'S OPERATIONS,
343		-	INCLUDING MANAGEMENT , ADMINISTRATION, ACCOUNTING, DATA
344		-	PROCESSING
345		-	, MARKETING, UNDERWRITING, CLAIMS HANDLING, INVESTMENT,
346		-	OR ANY OTHER SIMILAR FUNCTIONS ; OR
347		-	(B) ARE ESSENTIAL TO THE INSURER 'S ABILITY TO FULFILL ITS
348		-	OBLIGATIONS UNDER ITS INSURANCE POLICIES
349		-	.
	311	+	RE AN INTEGRAL PART OF THE INSURER 'S OPERATIONS,8
	312	+	INCLUDING MANAGEMENT , ADMINISTRATION, ACCOUNTING, DATA9
	313	+	PROCESSING, MARKETING, UNDERWRITING , CLAIMS HANDLING ,10
	314	+	INVESTMENT, OR ANY OTHER SIMILAR FUNCTIONS; OR11
	315	+	(B) A
	316	+	RE ESSENTIAL TO THE INSURER'S ABILITY TO FULFILL ITS12
	317	+	OBLIGATIONS UNDER ITS INSURANCE POLICIES .13
350	318		(II) T
351		-	HE COMMISSIONER MAY REQUIRE THAT AN AGREEMENT OR
352		-	CONTRACT PURSUANT TO SUBSECTION
353		-	(1)(b)(IV) OF THIS SECTION FOR THE
354		-	PROVISION OF SERVICES DESCRIBED IN SUBSECTION
355		-	(1)(h)(I) OF THIS SECTION
356		-	SPECIFY THAT THE AFFILIATE CONSENTS TO THE JURISDICTION AS SET FORTH
357		-	IN THIS SUBSECTION
358		-	(1)(h).
	319	+	HE COMMISSIONER MAY REQUIRE THAT AN AGREEMENT OR14
	320	+	CONTRACT PURSUANT TO SUBSECTION (1)(b)(IV) OF THIS SECTION FOR THE15
	321	+	PROVISION OF SERVICES DESCRIBED IN SUBSECTION (1)(h)(I) OF THIS16
	322	+	SECTION SPECIFY THAT THE AFFILIATE CONSENTS TO THE JURISDICTION AS17
	323	+	SET FORTH IN THIS SUBSECTION (1)(h).18
359	324		(4) T
360		-	HE COMMISSIONER MAY PROMULGATE RULES TO IMPLEMENT
361		-	THIS SECTION
362		-	.
363		-	PAGE 7-HOUSE BILL 24-1321 SECTION 4. In Colorado Revised Statutes, 10-3-808, amend (1),
364		-	(3)(a), (3)(c), (3)(d), and (6); and add (7) as follows:
365		-	10-3-808. Confidential treatment. (1) (a) Documents, materials,
366		-	or other information in the possession or control of the division that are
367		-	obtained by or disclosed to the commissioner or any other person in the
368		-	course of an examination or investigation made pursuant to section
369		-	10-3-806 and all information reported pursuant to section 10-3-803 (2)(l)
370		-	and (2)(m), 10-3-804, or 10-3-805
371		-	ARE PROPRIETARY AND CONTAIN TRADE
372		-	SECRETS AND
373		-	are confidential by law and privileged; are not subject to the
374		-	"Colorado Open Records Act", part 2 of article 72 of title 24; C.R.S.,
375		-	are
376		-	not subject to subpoena; and are not subject to discovery or admissible in
377		-	evidence in any private civil action. However, the commissioner is
378		-	authorized to use the documents, materials, or other information in the
379		-	furtherance of any regulatory or legal action brought as a part of the
380		-	commissioner's official duties. The commissioner shall not otherwise make
381		-	the documents, materials, or other information public without the prior
382		-	written consent of the insurer to which they pertain unless the
383		-	commissioner, after giving the insurer and its affiliates who would be
384		-	affected notice and opportunity to be heard, determines that the interest of
385		-	policyholders, shareholders, or the public will be served by the publication,
386		-	in which event the commissioner may publish all or any part
387		-	OF THE
388		-	DOCUMENTS
389		-	, MATERIALS, OR OTHER INFORMATION in such manner as the
390		-	commissioner deems appropriate.
	325	+	HE COMMISSIONER MAY PROMULGATE RULES TO IMPLEMENT19
	326	+	THIS SECTION.20
	327	+	SECTION 4. In Colorado Revised Statutes, 10-3-808, amend (1),21
	328	+	(3)(a), (3)(c), (3)(d), and (6); and add (7) as follows:22
	329	+	10-3-808. Confidential treatment. (1) (a) Documents, materials,23
	330	+	or other information in the possession or control of the division that are24
	331	+	obtained by or disclosed to the commissioner or any other person in the25
	332	+	course of an examination or investigation made pursuant to section26
	333	+	10-3-806 and all information reported pursuant to section 10-3-803 (2)(l)27
	334	+	1321
	335	+	-10- and (2)(m), 10-3-804, or 10-3-805 ARE PROPRIETARY AND CONTAIN1
	336	+	TRADE SECRETS AND are confidential by law and privileged; are not2
	337	+	subject to the "Colorado Open Records Act", part 2 of article 72 of title3
	338	+	24; C.R.S., are not subject to subpoena; and are not subject to discovery4
	339	+	or admissible in evidence in any private civil action. However, the5
	340	+	commissioner is authorized to use the documents, materials, or other6
	341	+	information in the furtherance of any regulatory or legal action brought7
	342	+	as a part of the commissioner's official duties. The commissioner shall not8
	343	+	otherwise make the documents, materials, or other information public9
	344	+	without the prior written consent of the insurer to which they pertain10
	345	+	unless the commissioner, after giving the insurer and its affiliates who11
	346	+	would be affected notice and opportunity to be heard, determines that the12
	347	+	interest of policyholders, shareholders, or the public will be served by the13
	348	+	publication, in which event the commissioner may publish all or any part14
	349	+	OF THE DOCUMENTS, MATERIALS, OR OTHER INFORMATION in such manner15
	350	+	as the commissioner deems appropriate.16
391	351		(b) F
392		-	OR PURPOSES OF THE INFORMATION REPORTED AND PROVIDED
393		-	TO THE DIVISION PURSUANT TO SECTION
394		-	10-3-804 (12)(b), THE
395		-	COMMISSIONER SHALL MAINTAIN THE CONFIDENTIALITY OF THE GROUP
396		-	CAPITAL CALCULATION AND GROUP CAPITAL RATIO PRODUCED WITHIN THE
397		-	CALCULATION AND ANY GROUP CAPITAL INFORMATION RECEIVED FROM AN
398		-	INSURANCE HOLDING COMPANY SUPERVISED BY THE FEDERAL RESERVE
399		-	BOARD OR ANY
400		-	UNITED STATES GROUP-WIDE SUPERVISOR.
	352	+	OR PURPOSES OF THE INFORMATION REPORTED AND PROVIDED17
	353	+	TO THE DIVISION PURSUANT TO SECTION 10-3-804 (12)(b), THE18
	354	+	COMMISSIONER SHALL MAINTAIN THE CONFIDENTIALITY OF THE GROUP19
	355	+	CAPITAL CALCULATION AND GROUP CAPITAL RATIO PR ODUCED WITHIN THE20
	356	+	CALCULATION AND ANY GROUP CAPITAL INFORMATION RECEIVED FROM AN21
	357	+	INSURANCE HOLDING COMPANY SUPERVISED BY THE FEDERAL RESERVE22
	358	+	BOARD OR ANY UNITED STATES GROUP-WIDE SUPERVISOR.23
401	359		(c) F
402		-	OR THE PURPOSES OF THE INFORMATION REPORTED AND
403		-	PROVIDED TO THE DIVISION PURSUANT TO SECTION
404		-	10-3-804 (12)(f), THE
405		-	COMMISSIONER SHALL MAINTAIN THE CONFIDENTIALITY OF THE LIQUIDITY
406		-	STRESS TEST RESULTS AND SUPPORTING DISCLOSURES AND ANY LIQUIDITY
407		-	STRESS TEST INFORMATION RECEIVED FROM AN INSURANCE HOLDING
408		-	COMPANY SUPERVISED BY THE FEDERAL RESERVE BOARD AND NON
409		-	-UNITED
410		-	STATES GROUP-WIDE SUPERVISORS.
411		-	PAGE 8-HOUSE BILL 24-1321 (3) In order to assist in the performance of the commissioner's
412		-	duties, the commissioner:
413		-	(a) May share documents, materials, or other information, including
414		-	the confidential and privileged documents, materials, or information subject
415		-	to subsection (1) of this section
416		-	AND PROPRIETARY AND TRADE SECRET
417		-	DOCUMENTS AND MATERIALS
418		-	, with other state, federal, and international
419		-	regulatory agencies, with the NAIC, and its affiliates and subsidiaries
420		-	WITH
421		-	ANY THIRD
422		-	-PARTY CONSULTANTS DESIGNATED BY THE COMMISSIONER , and
423		-	with state, federal, and international law enforcement authorities, including
424		-	members of any
425		-	A supervisory college described in section 10-3-807, if the
426		-	recipient agrees in writing to maintain the confidentiality and privileged
427		-	status of the document, material, or other information
428		-	OR PROPRIETARY AND
429		-	TRADE SECRET DOCUMENT AND MATERIAL
430		-	and has verified in writing the
431		-	legal authority to maintain confidentiality;
432		-	(c) May receive documents, materials, or information, including
433		-	otherwise confidential and privileged documents, materials, or information
434		-	AND PROPRIETARY AND TRADE SECRET INFORMATION , from the NAIC and
435		-	its affiliates and subsidiaries and from regulatory and law enforcement
436		-	officials of other foreign or domestic jurisdictions, and shall maintain as
437		-	confidential or privileged any document, material, or information
438		-	OR
439		-	PROPRIETARY AND TRADE SECRET DOCUMENTS AND MATERIALS
440		-	received
441		-	with notice or the understanding that it is confidential or privileged under
442		-	the laws of the jurisdiction that is the source of the document, material, or
	360	+	OR THE PURPOSES OF THE INFORMATION REPORTED AND24
	361	+	PROVIDED TO THE DIVISION PURSUANT TO SECTION 10-3-804 (12)(f), THE25
	362	+	COMMISSIONER SHALL MAINTAIN THE CONFIDENTIALITY OF THE LIQUIDITY26
	363	+	STRESS TEST RESULTS AND SUPPORTING DISCLOSURES AND ANY LIQUIDITY27
	364	+	1321
	365	+	-11- STRESS TEST INFORMATION RECEIVED FROM AN INSURANCE HOLDING1
	366	+	COMPANY SUPERVISED BY THE FEDERAL RESERVE BOARD AND2
	367	+	NON-UNITED STATES GROUP-WIDE SUPERVISORS.3
	368	+	(3) In order to assist in the performance of the commissioner's4
	369	+	duties, the commissioner:5
	370	+	(a) May share documents, materials, or other information,6
	371	+	including the confidential and privileged documents, materials, or7
	372	+	information subject to subsection (1) of this section
	373	+	AND PROPRIETARY8
	374	+	AND TRADE SECRET DOCUMENTS AND MATERIALS , with other state,9
	375	+	federal, and international regulatory agencies, with the NAIC, and its
	376	+	10
	377	+	affiliates and subsidiaries WITH ANY THIRD-PARTY CONSULTANTS11
	378	+	DESIGNATED BY THE COMMISSIONER , and with state, federal, and12
	379	+	international law enforcement authorities, including members of any A13
	380	+	supervisory college described in section 10-3-807, if the recipient agrees14
	381	+	in writing to maintain the confidentiality and privileged status of the15
	382	+	document, material, or other information
	383	+	OR PROPRIETARY AND TRADE16
	384	+	SECRET DOCUMENT AND MATERIAL and has verified in writing the legal17
	385	+	authority to maintain confidentiality;18
	386	+	(c) May receive documents, materials, or information, including19
	387	+	otherwise confidential and privileged documents, materials, or20
443	388		information
444		-	OR PROPRIETARY AND TRADE SECRET DOCUMENT AND
445		-	MATERIAL
446		-	; and
	389	+	AND PROPRIETARY AND TRADE SECRET INFORMATION , from21
	390	+	the NAIC and its affiliates and subsidiaries and from regulatory and law22
	391	+	enforcement officials of other foreign or domestic jurisdictions, and shall23
	392	+	maintain as confidential or privileged any document, material, or24
	393	+	information
	394	+	OR PROPRIETARY AND TRADE SECRET DOCUMENTS AND25
	395	+	MATERIALS received with notice or the understanding that it is26
	396	+	confidential or privileged under the laws of the jurisdiction that is the27
	397	+	1321
	398	+	-12- source of the document, material, or information OR PROPRIETARY AND1
	399	+	TRADE SECRET DOCUMENT AND MATERIAL ; and2
447	400		(d) Shall enter into written agreements with the NAIC
448		-	AND ANY
449		-	THIRD
450		-	-PARTY CONSULTANT DESIGNATED BY THE COMMISSIONER governing
451		-	the sharing and use of information provided pursuant to this part 8
452		-	consistent with this subsection (3) that must:
453		-	(I) Specify procedures and protocols regarding the confidentiality
	401	+	AND ANY3
	402	+	THIRD-PARTY CONSULTANT DESIGNATED BY THE COMMISSIONER4
	403	+	governing the sharing and use of information provided pursuant to this5
	404	+	part 8 consistent with this subsection (3) that must:6
	405	+	(I) Specify procedures and protocols regarding the confidentiality7
454	406		and security of information shared with the NAIC and its affiliates and
455		-	~~subsidiaries OR A THIRD-PARTY CONSULTANT DESIGNATED BY THE~~
456		-	~~COMMISSIONER~~
457		-	pursuant to this part 8, including procedures and ~~protocols~~
458		-	for sharing by the NAIC with other state, federal, or ~~international~~
	407	+	8
	408	+	subsidiaries OR A THIRD-PARTY CONSULTANT DESIGNATED BY THE9
	409	+	COMMISSIONER pursuant to this part 8, including procedures and protocols10
	410	+	for sharing by the NAIC with other state, federal, or international11
459	411		regulators. T
460		-	HE AGREEMENT MUST STATE THAT THE RECIPIENT AGREES TO
461		-	MAINTAIN THE CONFIDENTIALITY AND PRIVILEGED STATUS OF THE
462		-	PAGE 9-HOUSE BILL 24-1321 DOCUMENTS, MATERIALS, OR OTHER INFORMATION OR PROPRIETARY AND
463		-	TRADE SECRET DOCUMENTS AND MATERIALS AND HAS VERIFIED IN WRITING
464		-	THE LEGAL AUTHORITY TO MAINTAIN SUCH CONFIDENTIALITY
465		-	.
466		-	(II) Specify that ownership of information shared with the NAIC
467		-	and its affiliates and subsidiaries OR A THIRD-PARTY CONSULTANT pursuant
468		-	to this part 8 remains with the commissioner and that the NAIC's use of the
469		-	information USE OF THE INFORMATION BY THE NAIC OR THE THIRD-PARTY
470		-	CONSULTANT AS DESIGNATED BY THE COMMISSIONER
471		-	is subject to the
472		-	direction of the commissioner;
	412	+	HE AGREEMENT MUST STATE THAT THE RECIPIENT AGREES TO12
	413	+	MAINTAIN THE CONFIDENTIALITY AND PRIVILEGED STATUS OF THE13
	414	+	DOCUMENTS, MATERIALS, OR OTHER INFORMATION OR PROPRIETARY AND14
	415	+	TRADE SECRET DOCUMENTS AND MATERIALS AND HAS VERIFIED IN15
	416	+	WRITING THE LEGAL AUTHORITY TO MAINTAIN SUCH CONFIDENTIALITY .16
	417	+	(II) Specify that ownership of information shared with the NAIC17
	418	+	and its affiliates and subsidiaries
	419	+	OR A THIRD-PARTY CONSULTANT18
	420	+	pursuant to this part 8 remains with the commissioner and that the NAIC's19
	421	+	use of the information USE OF THE INFORMATION BY THE NAIC OR THE20
	422	+	THIRD-PARTY CONSULTANT AS DESIGNATED BY THE COMMISSIONER is21
	423	+	subject to the direction of the commissioner;22
473	424		(II.5) E
474		-	XCLUDING DOCUMENTS , MATERIAL, OR INFORMATION
475		-	REPORTED PURSUANT TO SECTION
476		-	10-3-804 (12)(f), PROHIBIT THE NAIC OR
477		-	A THIRD
478		-	-PARTY CONSULTANT DESIGNATED BY THE COMMISSIONER FROM
479		-	STORING THE INFORMATION SHARED PURSUANT TO THIS SECTION IN A
480		-	PERMANENT DATABASE AFTER THE UNDERLYING ANALYSIS IS COMPLETED
481		-	.
482		-	(III) Require prompt notice to be given to an insurer whose
483		-	confidential information in the possession of the NAIC
484		-	OR THIRD-PARTY
485		-	CONSULTANT DESIGNATED BY THE COMMISSIONER
486		-	pursuant to this part 8 is
487		-	subject to a request or subpoena to the NAIC
488		-	OR THIRD-PARTY CONSULTANT
489		-	DESIGNATED BY THE COMMISSIONER
490		-	for disclosure or production; and
491		-	(IV) Require the NAIC and its affiliates and subsidiaries OR A
492		-	THIRD
493		-	-PARTY CONSULTANT DESIGNATED BY THE COMMISSIONER to consent
494		-	to intervention by an insurer in any judicial or administrative action in
495		-	which the NAIC and its affiliates and subsidiaries
496		-	OR A THIRD-PARTY
497		-	CONSULTANT DESIGNATED BY THE COMMISSIONER
498		-	may be required to
499		-	disclose confidential information about the insurer shared with the NAIC
500		-	and its affiliates and subsidiaries
501		-	OR A THIRD-PARTY CONSULTANT
502		-	DESIGNATED BY THE COMMISSIONER
503		-	pursuant to this part 8; AND
504		-	(V) FOR DOCUMENTS, MATERIAL, OR INFORMATION REPORTED
505		-	PURSUANT TO SECTION
506		-	10-3-804 (12)(f), WHERE THERE IS AN AGREEMENT
507		-	INVOLVING A THIRD
508		-	-PARTY CONSULTANT, PROVIDE FOR NOTIFICATION OF
509		-	THE IDENTITY OF THE CONSULTANT TO THE APPLICABLE INSURERS
510		-	.
	425	+	XCLUDING DOCUMENTS , MATERIAL, OR INFORMATION23
	426	+	REPORTED PURSUANT TO SECTION 10-3-804 (12)(f), PROHIBIT THE NAIC24
	427	+	OR A THIRD-PARTY CONSULTANT DESIGNATED BY THE COMMISSIONER25
	428	+	FROM STORING THE INFORMATION SHARED PURSUANT TO THIS SECTION IN26
	429	+	A PERMANENT DATABASE AFTER THE UNDERLYING ANALYSIS IS27
	430	+	1321
	431	+	-13- COMPLETED.1
	432	+	(III) Require prompt notice to be given to an insurer whose2
	433	+	confidential information in the possession of the NAIC OR THIRD-PARTY3
	434	+	CONSULTANT DESIGNATED BY THE COMMISSIONER pursuant to this part 84
	435	+	is subject to a request or subpoena to the NAIC OR THIRD-PARTY5
	436	+	CONSULTANT DESIGNATED BY THE COMMISSIONER for disclosure or6
	437	+	production; and7
	438	+	(IV) Require the NAIC and its affiliates and subsidiaries OR A8
	439	+	THIRD-PARTY CONSULTANT DESIGNATED BY THE COMMISSIONER to9
	440	+	consent to intervention by an insurer in any judicial or administrative10
	441	+	action in which the NAIC and its affiliates and subsidiaries OR A11
	442	+	THIRD-PARTY CONSULTANT DESIGNATED BY THE COMMISSIONER may be12
	443	+	required to disclose confidential information about the insurer shared with13
	444	+	the NAIC and its affiliates and subsidiaries OR A THIRD-PARTY14
	445	+	CONSULTANT DESIGNATED BY THE COMMISSIONER pursuant to this part 8;15
	446	+	AND16
	447	+	(V) F
	448	+	OR DOCUMENTS, MATERIAL, OR INFORMATION REPORTED17
	449	+	PURSUANT TO SECTION 10-3-804 (12)(f), WHERE THERE IS AN AGREEMENT18
	450	+	INVOLVING A THIRD-PARTY CONSULTANT, PROVIDE FOR NOTIFICATION OF19
	451	+	THE IDENTITY OF THE CONSULTANT TO THE APPLICABLE INSURERS .20
511	452		(6) Documents, materials, or other information
512		-	OR PROPRIETARY
513		-	AND TRADE SECRET DOCUMENTS AND MATERIALS
514		-	in the possession or
	453	+	OR PROPRIETARY21
	454	+	AND TRADE SECRET DOCUMENTS AND MATERIALS in the possession or22
515	455		control of the NAIC
516		-	OR A THIRD-PARTY CONSULTANT DESIGNATED BY ~~THE~~
517		-	~~PAGE 10-HOUSE BILL 24-1321~~ COMMISSIONER pursuant to this part 8 are confidential by law ~~and~~
518		-	privileged; are not subject to the "Colorado Open Records Act", part 2 of
	456	+	OR A THIRD-PARTY CONSULTANT DESIGNATED BY THE23
	457	+	COMMISSIONER pursuant to this part 8 are confidential by law and24
	458	+	privileged; are not subject to the "Colorado Open Records Act", part 2 of25
519	459		article 72 of title 24; C.R.S.,
520		-	are not subject to subpoena; and are not subject
521		-	to discovery or admissible in evidence in any private civil action.
522		-	(7) (a) T
523		-	HE GROUP CAPITAL CALCULATION AND RESULTING GROUP
524		-	CAPITAL RATIO REQUIRED BY SECTION
525		-	10-3-804 (12)(b) AND THE LIQUIDITY
526		-	STRESS TEST ALONG WITH ITS RESULTS AND SUPPORTING DISCLOSURES
527		-	REQUIRED BY SECTION
528		-	10-3-804 (12)(f) ARE REGULATORY TOOLS FOR
529		-	ASSESSING GROUP RISKS AND CAPITAL ADEQUACY AND GROUP LIQUIDITY
530		-	RISKS
531		-	, RESPECTIVELY, AND ARE NOT INTENDED AS A MEANS TO RANK
532		-	INSURERS OR INSURANCE HOLDING COMPANY SYSTEMS GENERALLY
533		-	.
	460	+	are not subject to subpoena; and are not26
	461	+	subject to discovery or admissible in evidence in any private civil action. 27
	462	+	1321
	463	+	-14- (7) (a) THE GROUP CAPITAL CALCULATION AND RESULTING GROUP1
	464	+	CAPITAL RATIO REQUIRED BY SECTION 10-3-804 (12)(b) AND THE2
	465	+	LIQUIDITY STRESS TEST ALONG WITH ITS RESULTS AND SUPPORTING3
	466	+	DISCLOSURES REQUIRED BY SECTION 10-3-804 (12)(f) ARE REGULATORY4
	467	+	TOOLS FOR ASSESSING GROUP RISKS AND CAPITAL ADEQUACY AND GROUP5
	468	+	LIQUIDITY RISKS, RESPECTIVELY, AND ARE NOT INTENDED AS A MEANS TO6
	469	+	RANK INSURERS OR INSURANCE HOLDING COMP ANY SYSTEMS GENERALLY .7
534	470		(b) (I) E
535		-	XCEPT AS PROVIDED IN SUBSECTION (7)(b)(II) OF THIS
536		-	SECTION
537		-	, ANY INSURER, BROKER, OR OTHER PERSON ENGAGED IN ANY
538		-	MANNER IN THE INSURANCE BUSINESS SHALL NOT ADVERTISE
539		-	, ANNOUNCE,
540		-	OR STATE A REPRESENTATION REGARDING THE GROUP CAPITAL
541		-	CALCULATION
542		-	, GROUP CAPITAL RATIO, LIQUIDITY STRESS TEST RESULTS, OR
543		-	SUPPORTING DISCLOSURES FOR THE LIQUIDITY STRESS TEST OF ANY INSURER
544		-	OR ANY INSURER GROUP
545		-	, OR OF ANY COMPONENT DERIVED IN THE
546		-	CALCULATION BY DIRECTLY OR INDIRECTLY MAKING
547		-	, PUBLISHING,
548		-	DISSEMINATING, CIRCULATING, OR PLACING THE REPRESENTATION BEFORE
549		-	THE PUBLIC
550		-	:
	471	+	XCEPT AS PROVIDED IN SUBSECTION (7)(b)(II) OF THIS8
	472	+	SECTION, ANY INSURER, BROKER, OR OTHER PERSON ENGAGED IN ANY9
	473	+	MANNER IN THE INSURANCE BUSINESS SHALL NOT ADVERTISE , ANNOUNCE,10
	474	+	OR STATE A REPRESENTATION REGARDING THE GROUP CAPITAL11
	475	+	CALCULATION, GROUP CAPITAL RATIO, LIQUIDITY STRESS TEST RESULTS,12
	476	+	OR SUPPORTING DISCLOSURES FOR THE LIQUIDITY STRESS TEST OF ANY13
	477	+	INSURER OR ANY INSURER GROUP, OR OF ANY COMPONENT DERIVED IN THE14
	478	+	CALCULATION BY DIRECTLY OR INDIRECTLY MAKING , PUBLISHING,15
	479	+	DISSEMINATING, CIRCULATING, OR PLACING THE REPRESENTATION BEFORE16
	480	+	THE PUBLIC:17
551	481		(A) I
552		-	N A NEWSPAPER, MAGAZINE, OR OTHER PUBLICATION; OR
553		-	(B) IN THE FORM OF A NOTICE, CIRCULAR, PAMPHLET, LETTER, OR
554		-	POSTER
555		-	; OR
556		-	(C) OVER ANY RADIO OR TELEVISION STATION OR ANY ELECTRONIC
557		-	MEANS OF COMMUNICATION AVAILABLE TO THE PUBLIC
558		-	; OR
559		-	(D) IN ANY OTHER WAY AS AN ADVERTISEMENT .
	482	+	N A NEWSPAPER, MAGAZINE, OR OTHER PUBLICATION; OR18
	483	+	(B) I
	484	+	N THE FORM OF A NOTICE, CIRCULAR, PAMPHLET, LETTER, OR19
	485	+	POSTER; OR20
	486	+	(C) O
	487	+	VER ANY RADIO OR TELEVISION STATION OR ANY ELECTRONIC21
	488	+	MEANS OF COMMUNICATION AVAILABLE TO THE PUBLIC ; OR22
	489	+	(D) I
	490	+	N ANY OTHER WAY AS AN ADVERTISEMENT .23
560	491		(II) A
561		-	N INSURER MAY PUBLISH AN ANNOUNCEMENT ,
562		-	ADVERTISEMENT, OR STATEMENT DESCRIBED IN SUBSECTION (7)(b)(I) OF
563		-	THIS SECTION IN A WRITTEN PUBLICATION IF THE SOLE PURPOSE OF THE
564		-	ANNOUNCEMENT IS TO REBUT THE MATERIALLY FALSE STATEMENT WHEN
565		-	THE ANNOUNCEMENT
566		-	, ADVERTISEMENT, OR STATEMENT WAS PUBLISHED IN
567		-	A WRITTEN PUBLICATION AND THE INSURER IS ABLE TO DEMONSTRATE TO
568		-	PAGE 11-HOUSE BILL 24-1321 THE COMMISSIONER WITH SUBSTANTIAL PROOF THE FALSITY OR
569		-	INAPPROPRIATENESS OF SUCH ANNOUNCEMENT
570		-	, ADVERTISEMENT, OR
571		-	STATEMENT
572		-	.
573		-	SECTION 5. In Colorado Revised Statutes, amend 10-3-705 as
574		-	follows:
575		-	10-3-705. Rules. (1) The commissioner may adopt rules
576		-	implementing this part 7.
577		-	(2) (a) T
578		-	HE COMMISSIONER MAY ADOPT RULES APPLICABLE TO
579		-	REINSURANCE ARRANGEMENTS DESCRIBED IN THIS SUBSECTION
580		-	(2)(a).
581		-	R
582		-	ULES ADOPTED PURSUANT TO THIS SUBSECTION (2) MUST APPLY ONLY TO
583		-	REINSURANCE RELATING TO
584		-	:
585		-	(I) L
586		-	IFE INSURANCE POLICIES WITH GUARANTEED NONLEVEL GROSS
587		-	PREMIUMS OR GUARANTEED NONLEVEL BENEFITS
588		-	;
589		-	(II) U
590		-	NIVERSAL LIFE INSURANCE POLICIES WITH PROVISIONS
591		-	RESULTING IN THE ABILITY OF A POLICYHOLDER TO KEEP A POLICY IN FORCE
592		-	OVER A SECONDARY GUARANTEE PERIOD
593		-	;
594		-	(III) V
595		-	ARIABLE ANNUITIES WITH GUARAN TEED DEATH OR LIVING
596		-	BENEFITS
597		-	;
598		-	(IV) L
599		-	ONG-TERM CARE INSURANCE POLICIES; OR
600		-	(V) OTHER LIFE AND HEALTH INSURANCE AND ANNUITY PRODUCTS
601		-	AS TO WHICH THE
602		-	NAIC ADOPTS MODEL REGULATORY REQUIREMENTS WITH
603		-	RESPECT TO CREDIT FOR REINSURANCE
604		-	.
605		-	(b) A
606		-	RULE ADOPTED PURSUANT TO SUBSECTION (2)(a)(I) OR
607		-	(2)(a)(II) OF THIS SECTION MUST APPLY TO ANY TREATY CONTAINING :
608		-	(I) P
609		-	OLICIES ISSUED ON OR AFTER JANUARY 1, 2015; OR
610		-	(II) POLICIES ISSUED PRIOR TO JANUARY 1, 2015, IF RISK PERTAINING
611		-	TO PRE
612		-	-2015 POLICIES IS CEDED IN CONNECTION WITH THE TREATY , IN
613		-	WHOLE OR IN PART
614		-	, ON OR AFTER JANUARY 1, 2015.
615		-	PAGE 12-HOUSE BILL 24-1321 (c) A RULE ADOPTED PURSUANT THIS SUBSECTION (2) MAY REQUIRE
616		-	THE CEDING INSURER
617		-	, IN CALCULATING THE AMOUNTS OR FORMS OF
618		-	SECURITY REQUIRED TO BE HELD UNDER RULES PROMULGATED UNDER THIS
619		-	SUBSECTION
620		-	(2), TO USE THE VALUATION MANUAL ADOPTED BY THE NAIC
621		-	UNDER THE NAIC STANDARD VALUATION LAW , INCLUDING ALL
622		-	AMENDMENTS ADOPTED BY THE
623		-	NAIC AND IN EFFECT ON THE DATE ON
624		-	WHICH THE CALCULATION IS MADE
625		-	, TO THE EXTENT APPLICABLE.
626		-	(d) A
627		-	RULE ADOPTED PURSUANT TO THIS SUBSECTION (2) DOES NOT
628		-	APPLY TO CESSIONS TO AN ASSUMING INSURER THAT
629		-	:
630		-	(I) (A) M
631		-	EETS THE CONDITIONS SET FORTH IN SECTION 10-3-702
632		-	(6.5);
633		-	(B) I
634		-	S CERTIFIED IN THIS STATE; OR
635		-	(C) MAINTAINS AT LEAST TWO HUNDRED FIFTY MILLION DOLLARS IN
636		-	CAPITAL AND SURPLUS WHEN CALCULATED IN ACCORDANCE WITH THE MOST
637		-	RECENT
638		-	NAIC ACCOUNTING PRACTICES AND PROCEDURES MANUAL , AS
639		-	AMENDED BY THE
640		-	NAIC, EXCLUDING THE IMPACT OF ANY PERMITTED OR
641		-	PRESCRIBED PRACTICES
642		-	; AND
643		-	(II) IS LICENSED:
644		-	(A) I
645		-	N AT LEAST TWENTY-SIX STATES; OR
646		-	(B) IN AT LEAST TEN STATES AND LICENSED OR ACCREDITED IN A
647		-	TOTAL OF AT LEAST THIRTY
648		-	-FIVE STATES.
649		-	(e) T
650		-	HE AUTHORITY TO ADOPT RULES PURSUANT TO THIS SUBSECTION
651		-	(2) DOES NOT LIMIT THE COMMISSIONER'S GENERAL AUTHORITY TO ADOPT
652		-	RULES PURSUANT TO SUBSECTION
653		-	(1) OF THIS SECTION.
654		-	(f) A
655		-	S USED IN THIS SUBSECTION (2), "NAIC" MEANS THE NATIONAL
656		-	ASSOCIATION OF INSURANCE COMMISSIONERS.
657		-	SECTION 6. Act subject to petition - effective date. This act
658		-	takes effect January 1, 2025; except that, if a referendum petition is filed
659		-	pursuant to section 1 (3) of article V of the state constitution against this act
660		-	or an item, section, or part of this act within the ninety-day period after final
661		-	PAGE 13-HOUSE BILL 24-1321 adjournment of the general assembly, then the act, item, section, or part will
662		-	not take effect unless approved by the people at the general election to be
663		-	held in November 2024 and, in such case, will take effect January 1, 2025,
664		-	or on the date of the official declaration of the vote thereon by the governor,
665		-	whichever is later.
666		-	____________________________ ____________________________
667		-	Julie McCluskie Steve Fenberg
668		-	SPEAKER OF THE HOUSE PRESIDENT OF
669		-	OF REPRESENTATIVES THE SENATE
670		-	____________________________ ____________________________
671		-	Robin Jones Cindi L. Markwell
672		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
673		-	OF REPRESENTATIVES THE SENATE
674		-	APPROVED________________________________________
675		-	(Date and Time)
676		-	_________________________________________
677		-	Jared S. Polis
678		-	GOVERNOR OF THE STATE OF COLORADO
679		-	PAGE 14-HOUSE BILL 24-1321
	492	+	N INSURER MAY PUBLISH AN ANNOUNCEMENT ,24
	493	+	ADVERTISEMENT, OR STATEMENT DESCRIBED IN SUBSECTION (7)(b)(I) OF25
	494	+	THIS SECTION IN A WRITTEN PUBLICATION IF THE SOLE PURPOSE OF THE26
	495	+	ANNOUNCEMENT IS TO REBUT THE MATERIALLY FALSE STATEMENT WHEN27
	496	+	1321
	497	+	-15- THE ANNOUNCEMENT , ADVERTISEMENT, OR STATEMENT WAS PUBLISHED1
	498	+	IN A WRITTEN PUBLICATION AND THE INSURER IS ABLE TO DEMONSTRATE2
	499	+	TO THE COMMISSIONER WITH SUBSTANTIAL PROOF THE FALSITY OR3
	500	+	INAPPROPRIATENESS OF SUCH ANNOUNCEMENT , ADVERTISEMENT, OR4
	501	+	STATEMENT.5
	502	+	SECTION 5. In Colorado Revised Statutes, amend 10-3-7056
	503	+	as follows:7
	504	+	10-3-705. Rules. (1) The commissioner may adopt rules8
	505	+	implementing this part 7.9
	506	+	(2) (a) THE COMMISSIONER MAY ADOPT RULES APPLICABLE TO10
	507	+	REINSURANCE ARRANGEMENTS DESCRIBED IN THIS SUBSECTION (2)(a).11
	508	+	RULES ADOPTED PURSUANT TO THIS SUBSECTION (2) MUST APPLY ONLY TO12
	509	+	REINSURANCE RELATING TO:13
	510	+	(I) LIFE INSURANCE POLICIES WITH GUARANTEED NONLEVEL GROSS14
	511	+	PREMIUMS OR GUARANTEED NONLEVEL BENEFITS ;15
	512	+	(II) UNIVERSAL LIFE INSURANCE POLICIES WITH PROVISIONS16
	513	+	RESULTING IN THE ABILITY OF A POLICYHOLDER TO KEEP A POLICY IN17
	514	+	FORCE OVER A SECONDARY GUARANTEE PERIOD ;18
	515	+	(III) VARIABLE ANNUITIES WITH GUARANTEED DEATH OR LIVING19
	516	+	BENEFITS;20
	517	+	(IV) LONG-TERM CARE INSURANCE POLICIES; OR21
	518	+	(V) OTHER LIFE AND HEALTH INSURANCE AND ANNUITY PRODUCTS22
	519	+	AS TO WHICH THE NAIC ADOPTS MODEL REGULATORY REQUIREMENTS23
	520	+	WITH RESPECT TO CREDIT FOR REINSURANCE .24
	521	+	(b) A RULE ADOPTED PURSUANT TO SUBSECTION (2)(a)(I) OR25
	522	+	(2)(a)(II) OF THIS SECTION MUST APPLY TO ANY TREATY CONTAINING :26
	523	+	(I) POLICIES ISSUED ON OR AFTER JANUARY 1, 2015; OR27
	524	+	1321
	525	+	-16- (II) POLICIES ISSUED PRIOR TO JANUARY 1, 2015, IF RISK1
	526	+	PERTAINING TO PRE-2015 POLICIES IS CEDED IN CONNECTION WITH THE2
	527	+	TREATY, IN WHOLE OR IN PART, ON OR AFTER JANUARY 1, 2015.3
	528	+	(c) A RULE ADOPTED PURSUANT THIS SUBSECTION (2) MAY4
	529	+	REQUIRE THE CEDING INSURER, IN CALCULATING THE AMOUNTS OR FORMS5
	530	+	OF SECURITY REQUIRED TO BE HELD UNDER RULES PROMULGATED UNDER6
	531	+	THIS SUBSECTION (2), TO USE THE VALUATION MANUAL ADOPTED BY THE7
	532	+	NAIC UNDER THE NAIC STANDARD VALUATION LAW, INCLUDING ALL8
	533	+	AMENDMENTS ADOPTED BY THE NAIC AND IN EFFECT ON THE DATE ON9
	534	+	WHICH THE CALCULATION IS MADE , TO THE EXTENT APPLICABLE.10
	535	+	(d) A RULE ADOPTED PURSUANT TO THIS SUBSECTION (2) DOES NOT11
	536	+	APPLY TO CESSIONS TO AN ASSUMING INSURER THAT :12
	537	+	(I) (A) MEETS THE CONDITIONS SET FORTH IN SECTION 10-3-70213
	538	+	(6.5);14
	539	+	(B) IS CERTIFIED IN THIS STATE; OR15
	540	+	(C) MAINTAINS AT LEAST TWO HUNDRED FIFTY MILLION DOLLARS16
	541	+	IN CAPITAL AND SURPLUS WHEN CALCULATED IN ACCORDANCE WITH THE17
	542	+	MOST RECENT NAIC ACCOUNTING PRACTICES AND PROCEDURES M ANUAL,18
	543	+	AS AMENDED BY THE NAIC, EXCLUDING THE IMPACT OF ANY PERMITTED19
	544	+	OR PRESCRIBED PRACTICES; AND20
	545	+	(II) IS LICENSED:21
	546	+	(A) IN AT LEAST TWENTY-SIX STATES; OR22
	547	+	(B) IN AT LEAST TEN STATES AND LICENSED OR ACCREDITED IN A23
	548	+	TOTAL OF AT LEAST THIRTY-FIVE STATES.24
	549	+	(e) THE AUTHORITY TO ADOPT RULES PURSUANT TO THIS25
	550	+	SUBSECTION (2) DOES NOT LIMIT THE COMMISSIONER'S GENERAL26
	551	+	AUTHORITY TO ADOPT RULES PURSUANT TO SUBSECTION (1) OF THIS27
	552	+	1321
	553	+	-17- SECTION.1
	554	+	(f) AS USED IN THIS SUBSECTION (2), "NAIC" MEANS THE2
	555	+	NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS.3
	556	+	SECTION 6. Act subject to petition - effective date. This act4
	557	+	takes effect January 1, 2025; except that, if a referendum petition is filed5
	558	+	pursuant to section 1 (3) of article V of the state constitution against this6
	559	+	act or an item, section, or part of this act within the ninety-day period7
	560	+	after final adjournment of the general assembly, then the act, item,8
	561	+	section, or part will not take effect unless approved by the people at the9
	562	+	general election to be held in November 2024 and, in such case, will take10
	563	+	effect January 1, 2025, or on the date of the official declaration of the11
	564	+	vote thereon by the governor, whichever is later.12
	565	+	1321
	566	+	-18-