2021 Colorado Code
Title 10 - Insurance
Article 1 - General Provisions
Part 1 - General Provisions
§ 10-1-102. Definitions

As used in this title 10, unless the context otherwise requires:

1. “Actuary” means a person designated by the commissioner as a qualified actuary based on requirements set forth in rules promulgated by the commissioner.
2. “Admitted assets” includes the investments that are admitted assets of a domestic company under parts 1 and 2 of article 3 and part 4 of article 7 of this title and, in addition thereto, includes:
   1. Those assets defined as admitted by nationally recognized insurance statutory accounting principles; and
   2. Other assets deemed by the commissioner to be available for the payment of losses and claims, at values to be determined by the commissioner.

3. “Admitted company” or “authorized company” designates companies duly qualified and licensed to transact business in this state, under the provisions of this title. “Nonadmitted companies” or “unauthorized companies” designates companies not licensed to transact business in this state, under the provisions of this title (except article 15) and article 14 of title 24, C.R.S.

   (3.5) “Bail insurance company” means an insurer engaged in the business of writing bail bonds through bonding agents and subject to regulation by the division.

   (3.7) “Bail recovery” means actions taken by a person other than a peace officer to apprehend an individual or take an individual into custody because of the individual's failure to comply with bail conditions.
4. “Charitable gift annuity” means an annuity that:
   1. Meets the definition and standards contained in section 501 (m)(5) of the federal “Internal Revenue Code of 1986”, as amended;
   2. Contains on its face the following statement: “This annuity is not issued by an insurance company nor regulated by the Colorado division of insurance and is not protected by any state guaranty fund or protective association.”
   3. Is issued or guaranteed by an organization that at all times during the three years preceding the date of the issuance of such annuity:
      1. Was qualified to receive contributions described in section 170 (c) of the federal “Internal Revenue Code of 1986”, as amended; and
      2. If required as a condition of such qualification by provisions of the federal “Internal Revenue Code of 1986”, as amended, was in receipt of notification from the federal internal revenue service that such organization was so qualified.

5. “Commissioner” or “insurance commissioner” means the commissioner of insurance.
6. 1. “Company”, “corporation”, “insurance company”, or “insurance corporation” includes all corporations, associations, partnerships, or individuals engaged as insurers in the business of insurance, including the attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurer or interinsurance exchange, or suretyship except fraternal or benevolent orders and societies.
   2. “Company”, “corporation”, “insurance company”, or “insurance corporation” does not include health maintenance organizations unless the specific provision of law by its terms applies to health maintenance organizations.
   3. For the purposes of a “company”, “corporation”, or “insurance company”, a reciprocal insurer shall be considered a single economic entity. (6.5) “Disqualified insurance company” means a company licensed as a captive insurance company under the laws of this state or the laws of another jurisdiction with gross receipts for the taxable year that consist fifty percent or less of premiums from arrangements that constitute insurance for federal income tax purposes.

7. “Division” means the division of insurance.
8. “Domestic” designates those companies incorporated or formed in this state.
9. “Foreign”, when used without limitation, includes all those companies formed by authority of any other state or government.
10. “Institution” means any entity including, but not limited to, a corporation, a joint-stock company, a limited liability company, an association, a bank, a trust, a partnership, a joint venture, a special district, a government, or a quasi-governmental agency.
11. “Insurable interest in property” means every interest in property or any relation thereto, or liability in respect thereof, of such a nature that a contemplated peril might directly damnify the insured.
12. “Insurance” means a contract whereby one, for consideration, undertakes to indemnify another or to pay a specified or ascertainable amount or benefit upon determinable risk contingencies, and includes annuities.
13. “Insurer” means every person engaged as principal, indemnitor, surety, or contractor in the business of making contracts of insurance.
14. “Motor vehicle rental agreement” means an agreement for the rental of a motor vehicle for transportation purposes, for a period of no more than ninety days, in return for a fee that is calculated on a daily, weekly, or monthly basis.
15. “Motor vehicle rental company” means an entity that is in the business of renting, pursuant to motor vehicle rental agreements, motor vehicles that do not come within the definition of a commercial motor vehicle as set forth in section 42-2-402 (4), C.R.S.
16. “Nonadmitted assets” includes, but is not limited to, those assets defined as nonadmitted by nationally recognized insurance statutory accounting principles. Nonadmitted assets shall not be taken into account in determining the financial condition of a company.
17. 1. “Qualified United States financial institution” means an institution that is:
       1. Organized or, in the case of a United States office of a foreign banking organization, licensed under the laws of the United States or any state thereof; and
       2. Regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks, trust companies, or savings and loan associations.

    2. If any qualified United States financial institution issues letters of credit, such institution shall have been determined by either the commissioner or the securities valuation office of the national association of insurance commissioners to meet such standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the commissioner.
    3. If any qualified United States financial institution operates a trust, such institution shall be eligible to operate as a fiduciary of a trust and shall have been granted authority to operate with fiduciary powers.

18. “Real estate” and “real property” include fee simple and leasehold estates therein.
19. “Transact” as applied to insurance means and includes any of the following:
    1. Solicitation and inducement;
    2. Negotiations preliminary to effectuation of a contract of insurance;
    3. Execution of a contract of insurance;
    4. Transaction of matters subsequent to effectuation of a contract of insurance and arising out of the contract obligations.

History. Source: L. 2003: Entire article RC&RE, p. 587, § 1, effective July 1. L. 2004: (3) amended, p. 897, § 5, effective May 21. L. 2012: (3) amended and (3.5) and (3.7) added,(HB 12-1266), ch. 280, p. 1491, § 1, effective July 1. L. 2021: IP amended and (6.5) added,(HB 21-1311), ch. 298, p. 1785, § 11, effective June 23.

This section is similar to former § 10-1-102 as it existed prior to 2002.

For the legislative declaration in HB 21-1311, see section 1 of chapter 298, Session Laws of Colorado 2021.

Analysis

• I. GENERAL CONSIDERATION.
• II. COMPANY.
• III. INSURABLE INTEREST.
• IV. INSURANCE.
  • A. In General.
  • B. Construction.

• V. INSURER.

Annotator's note. Cases relevant to § 10-1-102 decided prior to its earliest source, L. 13, p. 321 , § 2, have been included in the annotations to this section. Since § 10-1-102 is similar to § 10-1-102 as it existed prior to the 2002 repeal of article 1 of title 10, relevant cases construing that provision also have been included in the annotations to this section.

An interinsurance exchange is included in the definition of insurance company in subsection (4). Because § 10-13-114 applies the regulatory remedies in §§ 10-3-401 to 10-3-414 to interinsurance exchanges, the insurance commissioner has the discretion to rehabilitate an interinsurance exchange in the same manner as any other insurance company. Alias Smith & Jones v. Barnes, 695 P.2d 302 (Colo. App. 1984).

One who makes a bona fide claim to equitable or legal title in property has an insurable interest, because he would suffer pecuniary damage in its destruction. Am. Ins. Co. v. Donlon, 16 Colo. App. 416, 66 P. 249 (1901).

A trustor may recover for loss. Where an insurance policy is issued to the owner covering property upon which there is a deed of trust and a loss occurs, the trustor may recover the entire loss irrespective of the encumbrance or the fact that the cestui que trust also had a policy on the property in which his interest, to the amount of the indebtedness, was insured. Farmers' Union Mut. Protective Ass'n v. San Luis State Bank, 86 Colo. 293 , 281 P. 366 (1929).

Owner has some interest in the property conveyed after sale by the trustee, until such time as the trustee under the deed of trust executes his deed to the person entitled thereto. Farmers' Union Mut. Protective Ass'n v. San Luis State Bank, 86 Colo. 293 , 281 P. 366 (1929).

Insurable interest is not dependent upon completeness or validity of title by which the property is held; a limited or qualified interest is enough. Webb v. M.F.A. Mut. Ins. Co., 44 Colo. App. 210, 620 P.2d 38 (1980).

Subsequent bona fide purchaser of stolen motor vehicle has insurable interest. A subsequent bona fide purchaser of a stolen motor vehicle has title and the right to possession of the vehicle against the whole world except the rightful owner, and this constitutes an insurable interest. Webb v. M.F.A. Mut. Ins. Co., 44 Colo. App. 210, 620 P.2d 38 (1980).

For cases dealing generally with the question of “insurable interest” from an academic standpoint, see Mich. Fire & Marine Ins. Co. v. Wich, 8 Colo. App. 409, 46 P. 687 (1896); Helvetia Swiss Fire Ins. Co. v. Allis Co., 11 Colo. App. 264, 53 P. 242 (1898); Am. Cent. Ins. Co. v. Donlon, 16 Colo. App. 416, 66 P. 249 (1901); Farmers' Union Mut. Protective Ass'n v. San Luis State Bank, 86 Colo. 293 , 281 P. 366 (1929); Simon v. Truck Ins. Exch., 757 P.2d 1123 (Colo. App. 1988).

Fraternal benefit societies, by §§ 10-1-113 and 10-14-104 , are not governed by general insurance laws. Neighbors of Woodcraft v. Westover, 99 Colo. 231 , 61 P.2d 585 (1936).

Contracts of an insurance corporation purporting to be organized not for profit are insurance contracts under the definition recited in subsection (7) and the relationship between the company and its members that of insurer and insured. Int'l Serv. Union Co. v. People ex rel. Wettengel, 101 Colo. 1 , 70 P.2d 431 (1937).

The terms in an insurance contract are to be given their meaning according to common usage. Reed v. United States Fid. & Guar. Co., 176 Colo. 568 , 491 P.2d 1377 (1971).

In the case of ambiguity of any term, the court will look to the body of the insurance contract for enlightenment, and the insurance contract terms will be construed most strongly against the insurer. Reed v. United States Fid. & Guar. Co., 176 Colo. 568 , 491 P.2d 1377 (1971).

In determining whether an intent to harm precludes coverage for injury under a homeowner's insurance policy, where the injury is child molestation, the subjective intent of the injuring party is not relevant to the determination. Rather, an intent to injure may be inferred as a matter of law due to the inherently harmful nature of child molestation. Allstate Ins. Co. v. Troelstrup, 789 P.2d 415 (Colo. 1990).

A person in the business of selling motor vehicle service contracts is not an insurer. In re First Assured Warranty Corp., 383 B.R. 502 (Bankr. D. Colo. 2008 ).