HB 21-1013 Summary

• Establishes a new statutory framework allowing Colorado domestic stock insurers to divide into multiple resulting insurers through a plan of division approved by the Insurance Commissioner.

• Requires a dividing insurer to file a plan of division with the Commissioner that details asset and liability allocation, resulting insurers' corporate documents, and share distribution to shareholders.

• Commissioner must hold a public hearing and approve the division plan if it meets financial stability, fairness, solvency, and consumer protection requirements, with at least 30 days' notice to policyholders and reinsurers.

• Resulting insurers become liable only for liabilities allocated to them by the plan of division and operate by operation of law without requiring transfer or assumption of assets.

• Appropriates $10,729 to the Division of Insurance for implementation and adds appraisal rights for shareholders when a dividing insurer does not survive the division.