Authority of commissioner - assistance of brokers' association.

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(1) The commissioner shall maintain such facilities as may be necessary to carry out the purposes of this article.

(2) The commissioner may rely upon the advice and assistance of a duly constituted association of brokers in carrying out the purposes of this article, if the association files with the commissioner:

  1. A copy of the association's constitution and articles of agreement or association orthe association's certificate of incorporation and bylaws and any rules or regulations governing the association's activities;

  2. (Deleted by amendment, L. 95, p. 496, § 16, effective May 16, 1995.)

  3. A list of the association's members;

  4. The name and address of a resident of this state upon whom notices or orders of thecommissioner or process issued by the commissioner may be served.

(2.5) The commissioner may examine the association's records concerning the functions or duties performed on behalf of the commissioner by the association.

  1. The association shall provide a means for the examination of all surplus line coverages written in this state to determine whether such coverages comply with the law and such rules or regulations as may be issued by the commissioner.

  2. The commissioner may refuse to accept, or may suspend or revoke the acceptance of,an association for any of the following reasons:

    1. It reasonably appears that the association will not be able to carry out the purpose ofthis article;

    2. The association does not maintain and enforce rules or regulations which will assurethat members of the association and persons associated with those members will comply with this article, other applicable articles of this title, and rules or regulations promulgated under either;

    3. The rules or regulations of the association do not assure a fair representation of itsmembers in the selection of directors and in the administration of its affairs;

    4. The rules or regulations of the association do not provide for an equitable allocationof reasonable dues, fees, and other charges among members;

    5. The rules or regulations of the association impose an undue burden on competition;(f) The association fails to meet other applicable requirements prescribed in this article.

  3. An association shall deny membership to any person who is not a licensee.

  4. A broker shall cooperate with the association and the commissioner of insurance infulfilling the broker's statutory responsibilities under this article.

  5. There shall not be liability on the part of, nor shall a cause of action of any naturearise against, the association or its agents, employees, or directors or authorized representatives of the commissioner for actions taken or omitted by them in the performance of their powers and duties under this section.

  6. (a) Upon request from the association, the commissioner may approve the levy of an examination fee of not more than one percent of premiums charged pursuant to this article for the operation of the association to the extent that such operation relieves the commissioner of duties otherwise required of the commissioner under this article.

(b) The association may revoke the membership and the commissioner may revoke the license in this state of any licensee who fails to pay the examination fee when due, if the examination fee has been approved by the commissioner.

Source: L. 49: p. 472, § 14. CSA: C. 87, § 331. CRS 53: § 72-14-14. C.R.S. 1963: § 7213-14. L. 81: Entire section R&RE, p. 540, § 6, effective January 1, 1982. L. 95: (2)(b), (6), and (7) amended and (2.5) added, p. 496, § 16, effective May 16; IP(2) amended, p. 1109, § 56, effective May 31. L. 2010: IP(2) amended, (HB 10-1220), ch. 197, p. 853, § 10, effective July 1.


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