(1) (a) The commissioner shall promulgate rules necessary for the implementation and administration of this article. Such rules shall include, without limitation, the definition of what organizations and entities qualify as exempt commercial policyholders. Such definition shall require such organizations to be those purchasing type II kinds of insurance as specified in section 10-4-401 (3)(b), except the commissioner shall not include purchasers of title insurance within the definition of an exempt commercial policyholder. For purposes of promulgating such rules, the commissioner shall consider recommendations from risk management professionals, insurer representatives, producers, buyers, qualified insurance consultants, consumers of insurance products, and any other persons as necessary.
(b) (I) For the purposes of promulgating the definition of an exempt commercial policyholder, the commissioner shall mandate that an exempt commercial policyholder procure its insurance through use of a risk manager employed or retained by the exempt commercial policyholder. The qualifications of the risk manager shall be defined by the division of insurance pursuant to this section.
(II) The commissioner shall define all other criteria of an exempt commercial policyholder which criteria shall include but are not limited to the following, and each exempt commercial policyholder shall meet at least one of such criteria:
The minimum amount for aggregate insurance premium sales for the exempt commercial policyholder;
The minimum net worth of the exempt commercial policyholder;
The minimum dollar amount for annual net revenues or sales for the exempt commercial policyholder;
The minimum number of employees of the exempt commercial policyholder perindividual insured, or, if the exempt commercial policyholder is a member of an affiliated group, the minimum number of employees in the employing group;
A not-for-profit or public entity's minimum annual budget or assets; or(F) A municipality's minimum population.
The definition of an exempt commercial policyholder shall be reviewed periodicallyby the commissioner with the recommendations from risk management professionals, insurer representatives, producers, buyers, qualified insurance consultants, consumers of insurance products, and any other person as the commissioner deems necessary.
The commissioner shall promulgate rules that define the disclosure requirements forinsurance policies issued to exempt commercial policyholders. Each insurance policy issued to an exempt commercial policyholder shall contain a conspicuous disclaimer printed in at least ten-point, bold-faced type that states that the policy is exempt from the rate filing and approval and the form filing and certification requirements of the division of insurance.
The division shall determine by rule the type of data, documents, reports, rate andform information, and any other information the commissioner determines necessary, to be collected from an insurer providing coverage to an exempt commercial policyholder when the division has received a complaint that an insurer is anticompetitive or not adequately servicing the needs of the exempt commercial policyholder.
Rules promulgated under this section shall be promulgated in accordance with article4 of title 24, C.R.S., and initially completed by January 15, 2000.
Source: L. 99: Entire part added, p. 384, § 1, effective January 15, 2000.