CO HB1315

Enacts the Credit for Reinsurance Model Act in Colorado law, establishing standards for when domestic insurers can take credit for reinsurance ceded to assuming insurers, with requirements based on the assuming insurer's licensing, accreditation, or certification status.

Allows reinsurance credit through six categories: licensed insurers in Colorado, accredited reinsurers, insurers in states with similar standards maintaining $20 million surplus, assuming insurers maintaining trust funds, certified reinsurers, and limited credit for jurisdictionally-required reinsurance.

Establishes the Insurer Receivership Model Act's netting agreement provisions, allowing counterparties to qualified financial contracts with insurers to terminate or accelerate obligations upon insolvency or delinquency proceedings, with specific restrictions on setoff rights.

Requires trust arrangements for foreign and certain assuming insurers to include specific conditions for asset distribution, claim valuation by the state insurance commissioner, and compliance with domestic insurance company liquidation laws.

Effective January 1, 2015 for most provisions, subject to referendum petition, with applicability to reinsurance agreements with inception, anniversary, or renewal dates at least six months after the effective date.