Purpose - applicability.

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(1) The purpose of this part 4 is to promote the public welfare by regulating insurance rates to the end that they not be excessive, inadequate, or unfairly discriminatory, to prohibit price-fixing agreements and other anticompetitive behavior by insurers, to promote price competition among insurers, to provide rates that are responsive to competitive market conditions, and to improve the availability and reliability of insurance. For such purposes, the division of insurance of the department of regulatory agencies and the head of the division, the commissioner of insurance, shall be charged with the execution of this part 4.

(2) This part 4 shall apply to all kinds of insurance except:

  1. Reinsurance other than joint reinsurance as provided in section 10-4-411;

  2. Life insurance and annuities regulated under article 7 of this title;

  3. Sickness and accident insurance regulated under parts 1 and 2 of article 16 of this

title;

  1. Nonprofit hospital and health services regulated under parts 1 and 3 of article 16 ofthis title;

  2. Health maintenance organization services regulated under parts 1 and 4 of article 16 of this title;

  3. (Deleted by amendment, L. 2000, p. 465, § 3, effective August 2, 2000.) (g) Surplus line insurance regulated under article 5 of this title.

(3) The kinds of insurance subject to this part 4 shall be divided into two classes, as follows:

(a) Type I kinds of insurance, regulated by prior filing and approval of rating information, which shall be subject to all provisions of this part 4 unless specifically excluded by the terms of a section. The following kinds of insurance shall be classified as type I:

  1. Workers' compensation and employer's liability incidental thereto for any pure premium rate filed by a rating organization. With regard to a rate filing submitted by a rating organization, the commissioner shall make available to the public, in a manner deemed appropriate by the commissioner, the aggregate loss and payroll data by class code that the rating organization submits with the rate filing. Such data shall not be used for any commercial purpose.

  2. (Deleted by amendment, L. 2000, p. 465, § 3, effective August 2, 2000.) (III) Assigned risk motor vehicle insurance; (IV) and (V) Repealed.

(VI) Such other kinds of insurance as the commissioner shall order classified as type I pursuant to the provisions of section 10-4-403 (5).

(b) Type II kinds of insurance, regulated by open competition between insurers, including fire, casualty, inland marine, title, credit, workers' compensation and employer's liability incidental thereto and written in connection therewith for rates filed by insurers, and all other kinds of insurance that are subject to this part 4 and not specified in paragraph (a) of this subsection (3), including the expense and profit components of workers' compensation insurance, which shall be subject to all the provisions of this part 4 except for sections 10-4-405 and 10-4-406. Type II insurers shall file rating data, as provided in section 10-4-403, with the commissioner; except that credit life and credit accident and health insurers shall file schedules of premium rates pursuant to sections 10-10-109 and 10-10-110. A rate filing summary for a type II kind of insurance subject to this part 4, except for workers' compensation insurance, shall be posted on the division's website in order to provide notice to the public. The public notice shall include the rate standards that apply pursuant to section 10-4-403 (1). Nothing in this section shall be construed to limit the right of the public to inspect a rate filing and any supporting information pursuant to part 2 of article 72 of title 24, C.R.S., or to impair the commissioner's ability to review rates and determine that the rates are not excessive, inadequate, or unfairly discriminatory.

  1. Except for type I kinds of insurance as defined in paragraph (a) of subsection (3) ofthis section, prior approval of rates, schedules of rates, rating plans, rating classifications and territories, rating rules, and rate manuals with the commissioner, or his prior approval thereof, shall not be required. In lieu thereof, the provisions of paragraph (b) of subsection (3) of this section and sections 10-4-413, 10-4-414, and 10-4-418 regarding the availability of such items, the review thereof, and hearings and judicial review thereof are applicable.

  2. Rate filings for insurance subject to this part 4 shall be filed electronically in a formatmade available by the division, unless exempted by rule for an emergency situation as determined by the commissioner.

Source: L. 79: Entire part R&RE, p. 362, § 8, effective July 1. L. 81: (3)(a)(V) repealed and (3)(b) amended, pp. 563, 562, §§ 3, 1, effective July 1. L. 86: (2)(g), (3)(b), and (4) amended, p. 579, § 2, effective July 1. L. 87: (2)(g) amended, p. 427, § 6, effective May 1; (3)(a)(IV) repealed, p. 439, § 10, effective May 22. L. 90: (3)(a)(I) amended, p. 558, § 15, effective July 1. L. 91: (3)(a)(I) and (3)(b) amended, p. 1194, § 1, effective April 11. L. 92: (2)(f) amended, p. 1557, § 56, effective May 20; (2)(d) and (2)(e) amended, p. 1724, § 7, effective July 1. L. 2000: (2)(f) and (3) amended, p. 465, § 3, effective August 2. L. 2006: (2)(c) amended, p. 1490, § 12, effective June 1. L. 2007: (3)(b) amended and (5) added, p. 2003, § 1, effective January 1, 2008. L. 2010: (3)(b) amended, (HB 10-1220), ch. 197, p. 854, § 17, effective July 1; (3)(a)(I) amended, (SB 10-112), ch. 52, p. 196, § 2, effective August 11.

Editor's note: This section is similar to former §§ 10-4-301, 10-4-302, and 10-4-401 as they existed prior to 1979.

Cross references: For the legislative declaration contained in the 2000 act amending subsections (2)(f) and (3), see section 1 of chapter 135, Session Laws of Colorado 2000.


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