CO| The Colorado Division of Insurance has amended Colorado Regulation 2-4-1, this regulation sets standards for placing surplus lines insurance and qualifying nonadmitted insurers under the Colorado Nonadmitted Insurance Act and the federal NRRA, applying to eligible nonadmitted insurers, brokers, producers, and independently procured nonadmitted business where the insured’s home state is Colorado.

• It establishes key consumer protection disclosures that must appear in bold on the declarations page for surplus lines, claims-made, non-complying auto, and certain international policies, requires identification of the individual placing broker, and mandates retention of copies of the required disclosures.
• The regulation also clarifies that surplus lines may be used when coverage is not available or affordable in the admitted market, defining affordability so that admitted quotes must exceed the eligible nonadmitted insurer’s quote by at least 10 percent for comparable coverage.
• The rule prescribes diligent search documentation requirements, including broker-attested efforts each policy period, record retention for at least three years, and special treatment of automobile liability risks subject to Colorado financial responsibility laws.
• It details surplus lines premium tax handling and reporting (quarterly and annual via the SLIP system), fines for late reports, the Division’s process for maintaining an annual eligible list, filing obligations for foreign and alien insurers (including NAIC IID listing for aliens and capital and surplus thresholds for foreign insurers), and a narrow path for specialty writers with lower surplus supported by an actuarial opinion.
• The regulation also incorporates portions of NAIC Model Law 870 by reference, provides standard enforcement remedies for noncompliance, and states that this latest amendment is effective January 30, 2026, with a long amendment history beginning in 1991.

Click here to see CO Amended Regulation 2-4-1