Except for violations of section 10-3-104 or article 15 of this title 10, any officer, director, stockholder, attorney, or agent of any corporation or association who violates any of the provisions of this title 10 and article 14 of title 24, who participates in or aids, abets, or advises or consents to any such violation, and any person who solicits or knowingly receives any money or property in violation of said references commits a class 2 misdemeanor, and any officer aiding or abetting in any contribution made in violation of said references is liable to the company or association for the amount so contributed. No person shall be excused from attending and testifying or producing any books, papers, or other documents, before any court, upon any investigation, proceeding, or trial, for a violation of any of the provisions of said references upon the ground or for the reason that the testimony or evidence, documentary or otherwise, required of such person may tend to incriminate or degrade him or her; but no person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he or she may so testify or produce evidence, documentary or otherwise, and no testimony so given or produced shall be used against him or her upon any criminal investigation or proceeding.
Source: L. 13: p. 354, � 53. C.L. � 2526. CSA: C. 87, � 68. CRS 53: � 72-3-15. C.R.S. 1963: � 72-3-15. L. 83: Entire section amended, p. 448, � 1, effective March 15. L. 92: Entire section amended, p. 1537, � 28, effective May 20. L. 2003: Entire section amended, p. 849, � 2, effective July 1. L. 2005: Entire section amended, p. 761, � 12, effective June 1. L. 2012: Entire section amended, (HB 12-1266), ch. 280, p. 1502, � 22, effective July 1. L. 2021: Entire section amended, (SB 21-271), ch. 462, p. 3147, � 111, effective March 1, 2022.
Cross references: For the penalty for a class 2 misdemeanor, see � 18-1.3-501.
10-3-112. Directors - terms - election - conflicts of interest - recovery of profits. (1) (a) The business of insurance companies incorporated under the laws of this state shall be managed by a board of directors consisting of such number of directors, not less than three, as may be prescribed by the articles of incorporation or bylaws, and said directors shall hold office until their successors are duly elected and qualified. Such directors shall be nominated and elected in the manner prescribed by the bylaws of the company not inconsistent with the laws of this state. No director may serve who has been convicted of fraud involving any financial institution or of a felony, but the commissioner may waive this provision regarding a felony if he or she determines that the particular felony does not jeopardize the person's ability to act as a director.
(b) (I) Each executive officer and director of a domestic company applying for a certificate of authority to do business in Colorado 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. Only the actual costs of such record check must be borne by the employer.
(II) When the results of a fingerprint-based criminal history record check of a person performed pursuant to this subsection (1)(b) reveal a record of arrest without a disposition, the commissioner shall require that person to submit to a name-based judicial record check, as defined in section 22-2-119.3 (6)(d).
(2) Every domestic insurance company shall report within thirty days to the commissioner any change in its executive officers or directors, including in its report a statement of the business and professional affiliations of any new executive officer or director. For purposes of this subsection (2), the term executive officer includes only the following: Chairman of the board of directors, president, executive vice-president, secretary, and treasurer.
(3) No director, officer, or employee having any authority in the investment or disposition of the funds of a domestic insurance company shall accept, except on behalf of the company, or be the beneficiary of any fee, brokerage, gift, or other emolument because of any investment, loan, deposit, purchase, sale, payment, or exchange made by or for the company; but a director who is not otherwise an officer or employee of the company may receive reasonable compensation for necessary services performed for sales or purchases made to or for the company in the ordinary course of its business and in the usual private professional or business capacity of such director.
(4) Any profit or gain received by or on behalf of any person in violation of subsection (3) of this section shall inure to and be recoverable by the company. Suit to recover such profit may be instituted in any court of competent jurisdiction by the company, or by any stockholder of the company in its name and in its behalf if the company fails or refuses to bring such suit within sixty days after request in writing or fails diligently to prosecute the same thereafter; but no such suit shall be brought more than two years after the date such profit was realized.
Source: L. 13: p. 346, � 31. C.L. � 2502. L. 33: p. 614, � 1. CSA: C. 87, � 29. CRS 53: � 72-1-43. C.R.S. 1963: � 72-1-43. L. 67: p. 163, � 1. L. 69: p. 510, � 1. L. 2002: (1) amended, p. 970, � 1, effective June 1. L. 2019: (1)(b) amended, (HB 19-1166), ch. 125, p. 537, � 2, effective April 18. L. 2022: (1)(b)(II) amended, (HB 22-1270), ch. 114, p. 513, � 3, effective April 21.