CO SB165

Amends Colorado law to establish two alternative criteria for an insurance company to qualify for a 1% premium tax rate by maintaining a home or regional home office in the state, rather than the previous standard.

First criterion allows a company to qualify if it substantially performs core insurance functions (actuarial, medical, legal, application approval, policy issuance, advertising, hiring, training) in Colorado for each state where licensed or in three or more states.

Second criterion allows qualification if the company maintains significant direct insurance operations in Colorado supported by functional operations necessary and pertinent to lines of business written in the state.

Establishes application deadlines: December 31 for new applicants, and March 1 for previously approved companies, with late charges of $100 per day for late submissions through March 31; applications after March 31 are denied.

Takes effect January 1, 2017, subject to referendum petition; applies to all home office or regional home office applications filed on or after the effective date.