DEPARTMENT OF REGULATORY AGENCIES 
DIVISION OF INSURANCE
3 CCR 702-3
Proposed Amended Regulation 3-1-1
FIDELITY BOND REQUIREMENTS
Section 1 	Authority
Section 2 	ScopeBackground and Purpose
Section 3	Applicability Requirement For Fidelity Coverage
Section 34 	Requirement For Fidelity CoverageSeverability
Section 45 	SeverabilityEffective Date
Section 56	EnforcementHistory
Section 7 	Effective Date
Section 8 	History
Section 1	Authority
This regulation is promulgated under the authority of §§ 10-1-109, 10-6-129, 10-14-505 and 10-16-109 C.R.S.
Section 2	ScopeBackground and Purpose
Funds received by insurers from insureds must be treated in a fiduciary capacity. The purpose of this regulation is to provide requirements for fidelity coverage for these entities.  The purpose of this regulation is to prescribe the minimum amount of fidelity coverage required to be maintained by insurers for money or other property, which may be lost because of theft or dishonest acts of its officers, directors and 
Section 3	ApplicabilityRequirement for Fidelity Coverage
This regulation shall apply to all Colorado domestic insurers as well as each risk retention group captive insurer, fraternal benefit society, health maintenance organization and non-profit hospital, medical-surgical and health service corporation.The provisions of this section shall be applicable . . .
Section 34	Requirement For Fidelity CoverageSeverability
All insurers must obtain fidelity coverage for all officers, directors and employees who handle or have access to company funds. The amount of coverage shall be determined in accordance with the following schedule.  All insurers must obtain fidelity coverage for all officers, directors and employees who have access to, or authorize transactions concerning company funds and investments. The amount of coverage shall be determined in accordance with the following schedule.
Minimum Amounts Oof Fidelity Insurance

Exposure Index	Bracket No	Amount of Bond	
$ 1,000 -	$ 25,000	1	$ 15,000 -	$ 25,000	
25,000 -	125,000	2	25,000 -	50,000	
125,000 -	250,000	3	50,000 -	75,000	
250,000 -	500,000	4	75,000 -	100,000	
500,000 -	750,000	5	100,000 -	125,000	
750,000 -	1,000,000	6	125,000 -	150,000	
1,000,000 -	1,375,000	7	150,000 -	175,000	
1,375,000 -	1,750,000	8	175,000 -	200,000	
1,750,000 -	2,125,000	9	200,000 -	225,000	
2,125,000 -	2,500,000	10	225,000 -	250,000	
2,500,000 -	3,325,000	11	250,000 -	300,000	
3,325,000 -	4,175,000	12	300,000 -	350,000	
4,175,000 -	5,000,000	13	350,000 -	400,000	
5,000,000 -	6,075,000	14	400,000 -	450,000	
6,075,000 -	7,150,000	15	450,000 -	500,000	
7,150,000 -	9,275,000	16	500,000 -	600,000	
9,275,000 -	11,425,000	17	600,000 -	700,000	
11,425,000 -	15,000,000	18	700,000 -	800,000	
15,000,000 -	20,000,000	19	800,000 -	900,000	
20,000,000 -	25,000,000	20	900,000 -	1,000,000	
25,000,000 -	50,000,000	21	1,000,000 -	1,250,000	
50,000,000 -	87,500,000	22	1,250,000 -	1,500,000	
87,500,000 -	125,000,000	23	1,500,000 -	1,750,000	
125,000,000 -	187,500,000	24	1,750,000 -	2,000,000	
187,500,000 -	250,000,000	25	2,000,000 -	2,250,000	
250,000,000 -	333,325,000	26	2,250,000 -	2,500,000	
333,325,000 -	500,000,000	27	2,500,000 -	3,000,000	
500,000,000 -	750,000,000	28	3,000,000 -	3,500,000	
750,000,000 -	1,000,000,000	29	3,500,000 -	4,000,000	
1,000,000,000 -	1,250,000,000	30	4,000,000 -	4,500,000	
1,250,000,000 -	1,500,000,000	31	4,500,000 -	5,000,000	

1A.	Calculation of Exposure Index and Bond Amount Calculation of Bond Amount 
1. 	Total Admitted Assets		
$ _______________ X 5% = 		$ ___________________
2.	Gross Income*
$ _______________X 10% = 	$ ___________________
3.	Exposure Index 			$ ___________________**
3B. Minimum Amount of Bond
Bracket # ____ 			$___________________
*Include gross premium written and assumed plus interest and dividend income.
**Amount is calculated by adding the results of A and B above.
Section 45	SeverabilityEffective Date
If any provisions of this regulation or its application to any person or circumstance is for any reason held to be invalid, the remainder of this regulation shall not be affected.
Section 56	EnforcementHistory
Noncompliance with this Regulation may result, after proper notice and hearing, in the imposition of any of the sanctions made available in the Colorado statutes pertaining to the business of insurance or other laws which include the imposition of fines, issuance of cease and desist orders, and/or suspensions or revocation of license.  
Section 7	Effective Date
This amended regulation shall be effective on April 1, 2000 October 2, 2006.
Section 8	History
Originally effective 1974.
Amended effective April 1, 2000.
Amended effective October 2, 2006