7 Colo. Code Regs. § 1101-4, pt. 4
Current through Register Vol. 47, No. 16, August 25, 2024
Part 4 - ADDITIONAL INSURANCE REQUIREMENTS(A)SPECIFIC EXCESS INSURANCE AND AGGREGATE EXCESS INSURANCE(1) The contract or policy of specific excess insurance and/or aggregate excess insurance shall comply with all of the following:(a) Is issued from either an insurer or a non-admitted surplus line company licensed or approved by the Insurance Commissioner of Colorado.(b) Is not cancelable or nonrenewable unless written notice by registered or certified mail is given to the other party to the policy and to the Executive Director not less than ninety (90) days before termination by the party desiring to cancel or not renew the policy.(c) Any contract or policy containing any type of commutation clause shall provide that any commutation effected thereunder shall not relieve the underwriter or underwriters of further liability in respect to claims and expenses unknown at the time of such commutation or in regard to any claim apparently closed at the time of initial commutation which is subsequently reopened by or through a competent authority. If the underwriter proposes to settle a liability for future payments payable as compensation for accidents occurring during the term of the policy by the payment of a lump sum to the employer to be fixed as provided in the commutation clause of the policy, then not less than thirty (30) days prior notice to such commutation shall be given by the underwriter(s) or its (their) agent by registered or certified mail to the Executive Director. If any commutation is effected, the Executive Director shall have the right to direct that such sum be placed in trust for the benefit of the injured employee(s) entitled to such future payments of compensation.(d) If a permit holder becomes insolvent and is unable to make benefit payments, the excess carrier shall make such payments as would have been made by the excess carrier to the employer, after it has been determined that the retention level has been reached on the excess contract, as directed by the Executive Director.(e) All of the following shall be applied toward the reaching of retention level in the specific excess contract and/or the aggregate excess contract:(1) Payments made by the employer;(2) Payments due and owing to claimant by the employer;(3) Payments made on behalf of the employer by any surety bond under a bond required by the Executive Director or from other security, as defined in Part 3(A)(4)(d).(f) Copies of a certificate of the excess insurance and aggregate insurance shall be filed, on an annual basis, with the Executive Director together with a certification that such policy fully complies with the rules of the Workers' Compensation Act.