(1) (a) The FAIR plan association may collect fees from member insurers to generate sufficient revenue to start up the association. (b) A member insurer that pays a fee based on subsection (1)(a) of this section may recoup the amount directly from the member insurers' policyholders. (c) A member insurer shall not increase premiums based on a fee assessed pursuant to subsection (1)(a) of this section. (d) The fee described in subsection (1)(a) of this section is not a premium for any purpose, including the computation of the gross premium tax described in section 10-3-209, or a licensed producer's commission. (2) (a) The FAIR plan association may collect fees from member insurers as needed for the association to meet its financial obligations, subject to approval by the commissioner. (b) A member insurer assessed a fee pursuant to subsection (2)(a) of this section may recoup the fee directly from the member insurer's policyholders as a surcharge on the policyholders. The surcharge may be recouped over a reasonable amount of time. (c) A member insurer shall not increase premiums based on a fee assessed pursuant to subsection (2)(a) of this section. (d) The fee described in subsection (2)(a) of this section is not a premium for any purpose, including the computation of the gross premium tax described in section 10-3-209, or a licensed producer's commission. (3) If the commissioner determines at any time that the FAIR plan association is or may become unable to meet its financial obligations, the commissioner shall direct the board to collect fees in accordance with subsection (2) of this section. (4) The FAIR plan association may abate or defer, in whole or in part, a fee assessed to a member insurer if, in the opinion of the board, payment of the fee would endanger the solvency of the member insurer. In the event a fee assessed against a member insurer is abated or deferred, in whole or in part, the amount by which such fee is abated or deferred may be assessed against the other member insurers.
‹ Prev All Colorado sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.