C.R.S. § 8-67-101 Short title
8-67-101. Short title. The short title of this article 67 is the "Colorado Uninsured Employer Act".
Colorado Uninsured Employer Act
C.R.S. tit. 8, art. 67
in effectC.R.S. § 8-67-102 Legislative declaration
8-67-102. Legislative declaration. (1) The general assembly hereby finds and declares that the purpose of this article 67 is to provide a mechanism for the payment of covered claims to workers injured while employed by employers who have failed to obtain and maintain the required workers' compensation insurance and to avoid excessive delay in payment and financial loss to injured workers.
(2) Therefore, it is the intent of the general assembly to require employers to maintain workers' compensation insurance and that the requirement be vigorously enforced in order to protect compliant employers from those who would gain a competitive advantage at the expense of the safety and well-being of employees.
C.R.S. § 8-67-103 Definitions
8-67-103. Definitions. As used in this article 67, unless the context otherwise requires:
(1) "Board" means the uninsured employer board created in section 8-67-106.
(2) "Covered claim" means a claim for benefits resulting from an injury occurring on or after January 1, 2020, that has been adjudicated to be compensable, for which the employer has been determined to be uninsured, and for which the employer has failed to pay the full amount of benefits as ordered.
(3) "Department" means the department of labor and employment.
(4) "Director" means the director of the division of workers' compensation.
(5) "Division" means the division of workers' compensation in the department of labor and employment.
(6) "Fund" means the Colorado uninsured employer fund.
C.R.S. § 8-67-104 Exclusions
8-67-104. Exclusions. (1) The following persons may not recover compensation or other benefits from the fund:
(a) A partner in a partnership or an owner of a sole proprietorship;
(b) A director or officer of a corporation;
(c) A member or manager of a limited liability company;
(d) An individual who was responsible for obtaining and maintaining the employer's workers' compensation insurance coverage and who failed to do so;
(e) An individual who was eligible to be covered under a workers' compensation insurance policy and voluntarily rejected the coverage under section 8-41-202, 8-41-404 (4)(a)(V), or 8-41-404 (4)(a)(VI);
(f) An individual who is not an "employee" as defined in sections 8-40-202 and 8-40-301 or who is otherwise ineligible to receive benefits under articles 40 to 47 of this title 8.
C.R.S. § 8-67-105 Colorado uninsured employer fund
8-67-105. Colorado uninsured employer fund. (1) The Colorado uninsured employer fund is hereby created in the state treasury. A board of directors established under section 8-67-106 shall administer the fund under a plan of operation established under section 8-67-108.
(2) (a) The money collected for the fund pursuant to articles 40 to 47 of this title 8 shall be transmitted to the state treasurer, who shall credit the money to the fund. The money credited to the fund and all interest earned thereon are hereby continuously appropriated for the payment of the direct costs of administering the program, including benefits paid pursuant to this article 67 and payments to third parties retained pursuant to this article 67.
(b) The internal staffing costs, not including payments to third parties contracted by the board, associated with uninsured employer programs shall be paid out of the workers' compensation cash fund in accordance with appropriations made pursuant to section 8-44-112 (7).
(c) The fund consists of:
(I) Civil penalties, fines, and other revenue collected by the division and specifically allocated to the fund pursuant to articles 40 to 47 of this title 8;
(II) Any public or private gifts, grants, or donations to the fund received by the department;
(III) Any appropriations made to the fund; and
(IV) Earned interest, which the state treasurer shall deposit in the fund.
(d) The department may use revenues in the fund for benefits to be paid out of the fund pursuant to this article 67 as well as administrative costs of the board.
(e) The money in the fund:
(I) Shall remain in the fund and not be credited or transferred to the general fund at the end of any fiscal year;
(II) Is exempt from section 24-75-402; and
(III) Is not subject to annual appropriation by the general assembly.
(3) No later than June 1, 2022, the state auditor shall conduct or cause to be conducted a performance audit of the Colorado uninsured employer fund.
C.R.S. § 8-67-106 Creation of board
8-67-106. Creation of board. (1) There is hereby created in the division the uninsured employer board, consisting of the director of the division or the director's representative and four members appointed by the governor and confirmed by the senate. Appointed members of the board must include at least one individual to represent each of the following:
(a) Employers;
(b) Labor organizations;
(c) Insurers; and
(d) Attorney representatives of injured workers.
(2) The board shall exercise its powers and perform its functions under the department and the director as if the board were transferred to the department by a type 2 transfer, as such transfer is defined in the "Administrative Organization Act of 1968", article 1 of title 24.
(3) The appointed members of the board shall serve for terms of three years and may be reappointed; except that, of the members first appointed, one shall serve for an initial term of three years, two shall serve for initial terms of two years, and one shall serve for an initial term of one year. A member may serve no more than three consecutive terms.
(4) Members of the board are not entitled to compensation for their services but shall be reimbursed for actual and necessary traveling and expenses incurred in the performance of their official duties as members of the board.
C.R.S. § 8-67-107 Powers of the board - rules
8-67-107. Powers of the board - rules. (1) The board has the following powers and duties:
(a) To establish standards and criteria for payment of benefits from the fund;
(b) To set minimum and maximum benefit rates; except that benefits paid by the fund shall not exceed the maximum allowed under articles 40 to 47 of this title 8 or set forth by order of the director. Minimum benefit rates shall be at the level required by articles 40 to 47 of this title 8 unless the fund lacks sufficient money as determined by the board. If benefits are paid below the amount mandated by articles 40 to 47 of this title 8, benefits shall be prioritized and paid as follows:
(I) Medical benefits;
(II) Funeral benefits;
(III) Temporary disability;
(IV) Death benefits;
(V) Permanent total disability;
(VI) Permanent partial disability;
(VII) Disfigurement.
(c) To adjust claims, which may be performed by contracting with any appropriate entities designated as third-party administrators. Designation of a third-party administrator is subject to the approval of the director.
(d) To pay the expenses of the board as authorized by this section;
(e) To disseminate information regarding the fund;
(f) To adopt rules as necessary to carry out the purposes of this article 67, including rules regarding admission to the fund and payment of benefits in order to ensure the financial stability of the fund;
(g) To investigate claims brought for benefits and to adjust, compromise, settle, and pay covered claims to the extent permitted by statute and rule; to deny payment of benefits from the fund of all other claims and to review settlements, releases, and final orders to which the uninsured employer and injured worker were parties; and to determine the extent to which such settlements, releases, and orders may effect eligibility for benefits.
(2) The board may:
(a) Employ or retain persons as necessary to handle claims and perform other duties of the board;
(b) Intervene as a party before any court or administrative tribunal in this state that has jurisdiction over an uninsured employer or other party potentially responsible for payment of benefits;
(c) Negotiate and become a party to contracts as necessary to carry out the purposes of this article 67;
(d) Perform other acts necessary or proper to effectuate the purposes of this article 67;
(e) Purchase or otherwise obtain insurance and reinsurance policies to limit the liability of the fund for payment of benefits under this article 67; and
(f) Deny entry to the fund or payment of benefits if the underlying claim appears to be premised on fraudulent activity.
C.R.S. § 8-67-108 Plan of operation - rules
8-67-108. Plan of operation - rules. (1) The board shall, by rule, adopt a plan of operation and any amendments necessary or suitable to assure the fair, reasonable, and equitable administration of the fund.
(2) If the board fails to adopt a plan of operation on or before September 1, 2018, the director shall, after notice and hearing, adopt and promulgate reasonable rules as necessary or advisable to effectuate this article 67. The rules shall continue in force until modified or superseded by the board.
(3) The plan of operation shall:
(a) Establish the procedures by which all the powers and duties of the board under section 8-67-107 will be performed;
(b) Establish the amount and method of reimbursing members of the board under section 8-67-106 (4);
(c) Establish procedures by which claims may be filed with the board, including establishing acceptable forms of proof of covered claims;
(d) Establish procedures for pursuing actions against uninsured employers pursuant to section 8-67-110;
(e) Establish regular places and times for meetings of the board;
(f) Establish procedures for maintaining records of all financial transactions of the board;
(g) Contain additional provisions necessary or proper for the execution of the powers and duties of the board; and
(h) Establish procedures for contracting with third-party administrators to administer claims paid by the fund.
C.R.S. § 8-67-109 Effect of benefits
8-67-109. Effect of benefits. (1) Notwithstanding this section or articles 40 to 47 of this title 8, a person seeking benefits under this article 67 from the fund is deemed to have assigned his or her rights under articles 40 to 47 of this title 8 to the board to the extent of the benefits paid by the fund. Every injured worker seeking the protection of this article 67 shall cooperate with the board to the same extent as he or she would have been required to cooperate with the employer.
(2) If an employer has no insurance and fails to pay the full amount of benefits as required by articles 40 to 47 of this title 8, the injured worker may apply to the board for payment of the compensation benefits, including medical benefits, to which the injured worker is entitled, to be paid from the fund. Benefits to which the injured worker is entitled from the fund do not include any penalties assessed against the employer.
(3) The board has the right to appear as a creditor in a bankruptcy proceeding involving an uninsured employer who has been found liable to an injured worker admitted to the fund.
(4) The receiver, liquidator, or statutory successor of an uninsured employer is bound by settlements of covered claims with the board. The court having jurisdiction shall grant such claims priority equal to that which the injured worker would have been entitled in the absence of this article 67 against the assets of the employer. The expenses of the board shall be accorded the same priority as the liquidator's expenses.
(5) Upon the acceptance of a claim into the fund, the board shall record, as provided by subsection (6) of this section, a certificate prepared and furnished by the division showing the date on which the claim was filed, the date of the injury, the name and last-known address of the employer against whom it was filed, the names and last-known addresses of the employer's principals, and the fact that the employer has not secured the payment of compensation as required. Upon recording, the certificate constitutes a valid lien against the assets of the employer and its principals in favor of the fund for the whole amount that may be due as compensation. Any lien secured pursuant to this article 67 has priority in the order filed. The board shall serve a copy of the certificate upon the employer and its principals.
(6) The certificate constituting a lien in favor of the fund must be filed in the following offices:
(a) The offices of the county clerks of the counties in which the principals of the defendant employer reside;
(b) The office of the county clerk of the county in which the defendant employer has its principal place of business; and
(c) The offices of the county clerks in the counties where the employer's property is located.
(7) If an uninsured employer becomes insolvent, the board may convert all future payments of workers' compensation weekly benefits, medical expenses, or other payments pursuant to articles 40 to 47 of this title 8 to a present lump sum. The board shall fix the lump sum of probable future medical expenses and weekly compensation benefits, or other benefits payable pursuant to articles 40 to 47 of this title 8, capitalized at their present value upon the basis of interest at the rate of four percent per annum. The board shall then file with the receiver or liquidator of an insolvent employer the statement of the lump sum, which shall preserve the rights of the board against the assets of the insolvent employer. The employer is discharged from all further liability for the commuted workers' compensation claim upon payment of the present lump sum to either the injured worker or, subject to approval by the board, to a licensed insurer for purchase of an annuity or other periodic payment plan for the benefit of the injured worker.
preserve the rights of the board against the assets of the insolvent employer. The employer is discharged from all further liability for the commuted workers' compensation claim upon payment of the present lump sum to either the injured worker or, subject to approval by the board, to a licensed insurer for purchase of an annuity or other periodic payment plan for the benefit of the injured worker.
(8) Payment from the fund does not relieve the obligation of the employer to pay benefits as required by articles 40 to 47 of this title 8 to the injured worker; except that any benefits due to the injured worker will be reduced by the amount of the benefits paid by the fund to the injured worker. All benefits required pursuant to articles 40 to 47 of this title 8 remain the liability of the employer.
C.R.S. § 8-67-110 Collection of benefit reimbursements
8-67-110. Collection of benefit reimbursements. (1) The board shall institute practices and procedures as it deems necessary to collect any money due the fund in the form of reimbursement for benefits paid from the fund to an injured worker.
(2) Repealed.
(3) If, after due notice, an employer defaults in the repayment of any benefits paid by the fund to an injured worker on that employer's behalf, the board may seek collection from the employer by instituting a civil action, which shall include the right of attachment in the name of the fund. Court costs shall not be charged to the board, but any employer against whom judgment is taken shall be charged with all costs of the action. All costs collected by the fund shall be paid into the registry of the court.
(4) The board may employ counsel and other personnel necessary to collect reimbursements as described in this section.
C.R.S. § 8-67-111 Payment of benefits
8-67-111. Payment of benefits. (1) Benefits paid under this article 67 are treated as benefits paid by an insurer or self-insured employer under articles 40 to 47 of this title 8.
(2) A person having a single claim against multiple employers is not entitled to receive benefits unless each of the liable employers is uninsured.
(3) When paying benefits, the board is entitled to claim any reduction of benefits, to claim overpayments, or to make any other adjustments allowed under articles 40 to 47 of this title 8.
(4) Benefits awarded under this article 67 must be reduced by any benefits paid by the uninsured employer.
C.R.S. § 8-67-112 Medical benefits
8-67-112. Medical benefits. (1) Medical benefits paid under this article 67 are treated as benefits paid by an insurer or self-insured employer under articles 40 to 47 of this title 8.
(2) Upon acceptance of a claim for benefits from the fund, the board may designate a new authorized treating physician. Application to the fund shall be deemed as acceptance by the injured worker of the new designated physician if the designation is made. The previously authorized treating physician providing primary care shall continue as the authorized treating physician providing primary care for the injured employee until the injured employee's initial visit with the newly authorized treating physician, at which time the treatment relationship with the previously authorized treating physician providing primary care is terminated.
(3) Notwithstanding articles 40 to 47 of this title 8, the board is permitted to negotiate rates of reimbursement for medical providers.
C.R.S. § 8-67-113 Procedure
8-67-113. Procedure. (1) A controversy concerning any issue arising under this section shall be resolved through hearings in accordance with sections 8-43-207 and 8-43-207.5. In any such hearing, a decision of the board to deny benefits may only be set aside upon a showing of abuse of discretion.
(2) The division shall notify the board of any claim determined or suspected to be uninsured, either at the time of filing or otherwise. Upon the notification, the board is permitted to join the claim as a party upon written notice to all other parties.
(3) A hearing must not proceed on the issue of lack of coverage without the board having been notified and provided an opportunity to join the claim as a party.
(4) The board, its agents, or employees have no liability for any action taken against them for the performance of their duties under this article 67.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-08.docxFetched: 10/6/2026