(1) Group captive insurance companies shall comply with the investment requirements and limitations applicable to other insurance companies under the laws of this state as described in sections 10-1-102 (2) and (16), 10-3-213 to 10-3-242, and 10-3-802.
(2) (a) Pure captive insurance companies shall not be subject to any restrictions on investments whatsoever; except that the commissioner may prohibit or limit any investment that threatens the solvency or liquidity of any such company or if such investments are not made in accordance with the approved plan of operation.
(b) A pure captive insurance company may make loans to its parent company if approved within its plan of operations.
(3) In lieu of a fidelity bond, the officers, directors, or managers of a captive insurance company shall demonstrate sufficient safeguards to protect the funds of the captive insurance company.
Source: L. 72: p. 436, § 1. C.R.S. 1963: § 72-36-21. L. 87: Entire section amended, p. 438, § 7, effective May 22. L. 89: (2) amended and (3) to (11) added, p. 466, § 12, effective April 15. L. 91: IP(10) amended, p. 1225, § 6, effective May 24. L. 94: Entire section R&RE, p. 549, § 12, effective April 6. L. 2003: (1) amended, p. 617, § 16, effective July 1.
Cross references: For the regulation of the financial affairs of insurance companies, see part 2 of article 3 of this title 10.