As used in this article 15, unless the context otherwise requires:
(1) Broker means any contract seller who must utilize the services of a general provider to fulfill the terms of a preneed contract.
(1.5) Cash advances means consideration which can be used at the time of need at the discretion of the contract buyer or his or her heirs, assigns, or authorized representatives for merchandise or services the prices of which are not guaranteed in a preneed contract and which merchandise or services are ancillary and in addition to merchandise and services the prices of which are guaranteed in a preneed contract.
(2) Cemetery means any place, including a mausoleum, niche, or crypt, in which there is provided space either below or above the surface of the ground for the interment of the remains of human bodies.
(3) Commissioner means the commissioner of insurance.
(4) Common trust funds means a common trust as defined by the provisions of article 24 of title 11, C.R.S. This article does not preclude the use of a common trust to the extent that the individual contract seller complies with the provisions of this article.
(5) Contract buyer means a person who purchases merchandise and services through a preneed contract.
(6) Contract seller means a person who sells or offers to sell funeral goods, merchandise, or services through a preneed contract.
(7) Final resting place means a space, either below or above the surface of the ground, for the interment of the remains of human bodies.
(8) Funds means money paid by a contract buyer, excluding interest, finance charges, and late fees paid, for the purchase of a preneed contract.
(8.5) Funeral goods has the same meaning as in section 12-135-103 (17).
(9) General provider means a person who engages, on a contract basis, in the usual business of providing the merchandise and performing the services, at time of need, for the final disposition of a deceased human body, and does not include subcontractors of a general provider.
(10) Merchandise means goods which are normally sold or offered for sale directly to the public for use in connection with funeral services and does not include overhead items.
(11) Overhead items means items such as embalming fluid, sanitary supplies, and other items used in the performance of funeral services.
(12) Person means an individual, partnership, firm, joint venture, corporation, company, association, joint stock association, or limited liability company.
(13) (a) Preneed contract means any written contract, agreement, or mutual understanding, or any security or other instrument that is convertible into a contract, agreement, or mutual understanding, whereby, upon the death of the preneed contract beneficiary, a final resting place, merchandise, or services are provided or performed in connection with the final disposition of the beneficiary's body. Consideration for a preneed contract is funds, deposits, or the assignment of life insurance benefits.
(b) Preneed contract does not include:
(I) A contract for merchandise whereby the buyer takes physical possession of the merchandise at the time of entering into the contract; or
(II) A transportation protection agreement.
(c) (Deleted by amendment, L. 2013.)
(14) Preneed contract beneficiary means, for any preneed contract entered into on or after July 1, 1967, any person specified in the preneed contract, upon whose death a final resting place, merchandise, or services of any nature shall be provided, delivered, or performed.
(15) Preneed contract price means the total price listed on a preneed contract for all items listed and includes cash advances.
(16) Services means any services that may be used to care for and prepare deceased human bodies for final disposition.
(16.5) Transportation protection agreement means an agreement that primarily provides for the coordination and arrangement, by a third party that is not a general provider, of services related to:
(a) The preparation of human remains for the purpose of transportation; or
(b) The transportation of human remains.
(17) Trustee means a chartered state bank, savings and loan association, credit union, or trust company that is authorized to act as fiduciary and that is subject to supervision by the state bank or financial services commissioner or a national banking association, federal credit union, or federal savings and loan association authorized to act as fiduciary in Colorado.
(18) Trust funds means funds deposited by a contract seller with a trustee.
(19) Trust instrument means the documents pursuant to which a trustee receives, holds, invests, and disburses trust funds.
Source: L. 95: Entire article R&RE, p. 1031, � 1, effective May 25. L. 2013: (6) and (13) amended and (8.5) added, (SB 13-125), ch. 287, p. 1515, � 1, effective August 7. L. 2019: IP and (8.5) amended, (HB 19-1172), ch. 136, p. 1653, � 39, effective October 1. L. 2021: (16) amended, (SB 21-006), ch. 123, p. 489, � 6, effective September 7. L. 2025: (13)(b) amended and (16.5) added, (HB 25-1217), ch. 92, p. 414, � 1, effective August 6.
Editor's note: (1) This section is similar to former � 10-15-102 as it existed prior to 1995.
(2) Section 6(2) of chapter 92 (HB 25-1217), Session Laws of Colorado 2025, provides that the act changing this section applies to offenses committed on or after August 6, 2025.
10-15-103. License procedure - records - examination of records - definition - rules. (1) (a) A contract seller shall not enter into a preneed contract or accept any funds or other consideration without a license from the commissioner. To be valid, an application for an initial license must be in writing, signed by the applicant, and duly verified on forms furnished by the commissioner. Each application must be accompanied by payment of five hundred dollars and proof of either the net worth or surety bond requirements established by the commissioner by rule.
(b) (I) With the submission of the initial application described in paragraph (a) of this subsection (1), each applicant shall submit a set of fingerprints to the commissioner. The commissioner shall forward such fingerprints to the Colorado bureau of investigation for the purpose of conducting a state and national fingerprint-based criminal history record check utilizing records of the Colorado bureau of investigation and the federal bureau of investigation.
(I.5) When the results of a fingerprint-based criminal history record check of an applicant performed pursuant to this subsection (1)(b) reveal a record of arrest without a disposition, the commissioner shall require that applicant to submit to a name-based judicial record check, as defined in section 22-2-119.3 (6)(d).
(II) For purposes of this paragraph (b), applicant means an individual and, in the case of a corporation, each officer and director of the corporation.
(2) Upon receipt of a complete initial application and license fee, the commissioner shall issue a license to the applicant unless the commissioner determines that:
(a) The applicant has made false statements or misrepresentations in such application; or
(b) The applicant does not meet the conditions of subsection (1) of this section; or
(c) The applicant is not duly authorized to transact business in the state of Colorado; or
(d) Any officer, director, or controlling shareholder of the applicant has been convicted of a crime involving fraud or misappropriation or misuse of funds; or
(e) The applicant has not filed a preneed contract, general provider contract, or trust agreement and assignment form, where applicable, which comply with the provisions of this article; or
(f) The applicant is an insurance company.
(3) (a) The contract seller shall keep accurate accounts, books, and records of all transactions, copies of all preneed contracts, dates and amounts of payments made and accepted thereon, the name and address of each contract buyer, copies of all annual reports, the name of the preneed contract beneficiary as to each preneed contract, the name of the trustee holding trusted funds received under each preneed contract, copies of statutory reports made to the trustee and statutory reports provided by the trustee, and any other information necessary to verify compliance with the provisions of this article.
(b) Such records as stated in paragraph (a) of this subsection (3) shall be kept by the contract seller for at least five years following the earliest of the following:
(I) The death of the preneed contract beneficiary; or
(II) The removal of funds from trust; or
(III) The termination of the assignment of life insurance benefits.
(4) (a) The commissioner may investigate the books, records, and accounts of a contract seller to ensure that trust funds, preneed contracts, and preneed insurance policies comply with this article 15. The commissioner, or a qualified person designated by the commissioner, may examine the books, records, and accounts of the contract seller as often as necessary and may require the attendance of and examine under oath all persons whose testimony the commissioner needs for this purpose.
(b) The commissioner shall make every reasonable effort to utilize examiners employed by the division of insurance in preference to designating persons who are not employees of the division of insurance to perform examinations. If evidence of a violation of this article is known, the commissioner may designate a qualified person who is not an employee of the division of insurance to examine a contract seller, and the contract seller shall directly pay the reasonable expenses and charges of the examiner. The examinee may contest the amount of fees, costs, and expenses charged by the examiner by filing an objection with the commissioner that sets forth the charges the examinee considers to be unreasonable, together with the basis for disputing the charges. Amounts that are disputed are not due to the examiner until the commissioner has reviewed the objection and made a written finding that the disputed charges were reasonable for the examination performed.
(5) (a) Every license shall expire on June 30. Every license shall be renewed annually and automatically extended upon filing of a complete application on a form provided by the commissioner, demonstration of compliance with the conditions of subsection (2) of this section, payment of the fee prescribed in paragraph (b) of this subsection (5), and the filing of the annual report which shall be due by March 31 of each year. A filing made later than March 31 may be subject to a late fee of up to one hundred dollars per day for each day received after such date. If the contract seller is in compliance with this section, the contract seller shall be deemed licensed unless and until notified by the commissioner that the renewal does not comply with this section.
(b) The commissioner shall establish the annual renewal fee by rule based on the cost of regulating the industry and the outstanding preneed contract obligations of the contract sellers.
(6) Notwithstanding the amount specified for any fee in this section, the commissioner by rule or as otherwise provided by law may reduce the amount of one or more of the fees if necessary pursuant to section 24-75-402 (3), C.R.S., to reduce the uncommitted reserves of the fund to which all or any portion of one or more of the fees is credited. After the uncommitted reserves of the fund are sufficiently reduced, the commissioner by rule or as otherwise provided by law may increase the amount of one or more of the fees as provided in section 24-75-402 (4), C.R.S.
Source: L. 95: Entire article R&RE, p. 1034, � 1, effective May 25. L. 98: (6) added, p. 1328, � 32, effective June 1. L. 2002: (1) amended, p. 971, � 3, effective June 1. L. 2010: (4) amended, (HB 10-1220), ch. 197, p. 853, � 11, effective July 1. L. 2013: (1)(a) and (4) amended, (SB 13-125), ch. 287, p. 1516, � 2, effective August 7. L. 2019: (1)(b)(I.5) added, (HB 19-1166), ch. 125, p. 538, � 4, effective April 18. L. 2022: (1)(b)(I.5) amended, (HB 22-1270), ch. 114, p. 514, � 6, effective April 21; (1)(a), (4)(a), and (5)(b) amended, (HB 22-1228), ch. 309, p. 2223, � 3, effective August 10.
Editor's note: This section is similar to former � 10-15-103 as it existed prior to 1995.