| Notice Filed with SOS |
08/30/2024 |
| Rule |
ProposedRuleAttach2024-00424.docx
|
| Additional Information |
AddInfoAttach2024-00424.pdf
|
| Statutory Authority |
11-101-102. Declaration of policy.
11-102-104. Powers and duties of the banking board.
11-109-104. Powers - banking board - commissioner |
| Description of Subjects/Issues |
The purpose of this rule is to establish the minimum amounts of bond and error and omissions insurance
a trust company must maintain.
The Colorado Division of Banking (Division) finds that the proposed amendments to rule TC16 are necessary as follows:
Remove the term surety bond and replace it with fidelity bond as a fidelity bond is more appropriate for a trust company.
Adjust the minimum bond amount from the initial 1993 amount, $1,000,000, to equivalent dollar levels in 2024, $2,000,000.
Require that the trust company must conduct a risk analysis when determining the amount of the fidelity bond and errors and omissions insurance.
Require that the corporate insurance or bonding company must be authorized to do business in Colorado.
Add a one year phase-in period to allow trust companies time to comply with the new minimum fidelity bond requirement. |
| Purpose/Objective of Rule |
The purpose of this rule is to establish the minimum amounts of bond and error and omissions insurance a trust company must maintain. |
| Basis And Purpose |
BasisAndPurposeAttachment2024-00424.pdf
|
| Comments |
The Colorado Division of Banking (Division) finds that the proposed amendments this rule are necessary as follows:
􀆔 Remove the term surety bond and replace it with fidelity bond as a fidelity bond is more appropriate for a trust company.
􀆔 Adjust the minimum bond amount from the initial 1993 amount, $1,000,000, to equivalent dollar levels in 2024, $2,000,000.
􀆔 Require that the trust company must conduct a risk analysis when determining the amount of the fidelity bond and errors and omissions insurance.
􀆔 Require that the corporate insurance or bonding company must be authorized to do business in Colorado.
􀆔 Add a one year phase-in period to allow trust companies time to comply with the new minimum fidelity bond requirement. |
| Submitted in response to issues raised by COLS/OLLS? |
No
|
| Is this rule adopted in response to recent legislation? |
No
|
| Hearing Date |
10/17/2024 |
| Hearing Time |
10:00 AM |
| Hearing Location |
1560 Broadway, Suite 100D, Denver, Colorado |
| Contact Name |
Charles Siler |
| Contact Title |
Banking Board Administrator |
| Contact Telephone |
3038947584 |
| Contact email |
charles.siler@state.co.us |