ARCHIVED  October 1, 1997

Insurance regulations reduce number of Colo. insolvencies

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A risk-based capital rule put in place to prevent insolvencies of health-insurance companies appears to be working.
How it operates: If a health-insurance company invests in something such as mutual funds, for example, it also must have a minimum set aside in nonrisk securities. The risk-based capital regulations are intended to create an early-warning system to alert state regulators to possible problems in the insurance industry.
A surge of insurance-industry insolvencies in the mid to late 1980s made regulators sit up and take notice. But since regulations were approved by the National Association of Insurance Commissioners and adopted in…

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Christopher Wood
Christopher Wood is editor and publisher of BizWest, a regional business journal covering Boulder, Broomfield, Larimer and Weld counties. Wood co-founded the Northern Colorado Business Report in 1995 and served as publisher of the Boulder County Business Report until the two publications were merged to form BizWest in 2014. From 1990 to 1995, Wood served as reporter and managing editor of the Denver Business Journal. He is a Marine Corps veteran and a graduate of the University of Colorado Boulder. He has won numerous awards from the Colorado Press Association, Society of Professional Journalists and the Alliance of Area Business Publishers.
Categories: ARCHIVED Industry News
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