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STTTES&HARBISONeur Robert D. Clark, Esq. Cheryl A. Linden, Esq. March 12, 2001 Page 5 license." 2 C.C.R 407-2, Rule 3.02.4(2)(b)(v)(C). The first condition does not apply, since Frontier is not bankrupt. The next issue is whether Frontier caz~ or should be considered to be insolvent The Clazk letter and the NOV set forth a number of facts regazding Frontier's financial condition and then conclude that Frontier may be not able to meet its bonded obligations. While the letter and the NOV do aot specifically declare Frontier to be insolvent, the fact that DMG has ordered Powderhom to replace the Frontier bond certainly implies that the agency has, in effect, found Frontier to be insolvent. however, DMG lacks the statutory authority to declare or determine Frontier to be insolvent. Such a detemtination can only be made by the Colorado Insurance Commissioners. Accordingly, Frontier cannot be considered to be insolvent for purposes of determining whether Powderhom's reclamation bond must be replaced. The neat issue is whether any grounds east for suspension or revocation of Frontier's license. As was noted above, Frontier's delisting by the U.S. Department of Treasury is irrelevant to the continuing validity of Frontier's Colorado license or certificate of authority issued by the Insurance Commissioner. Otherwise, the determination as to whether Frontier's Colorado license should be suspended or revoked is to be made by the Insurance Commissioner, and not by the DMG, under specific criteria and procedures sat forth in the insurance statutesb. No such determination has been made by the Commissioner, because none of the specified criteria are applicable to Frontier. The DMG cannot suspend or revoke Frontier's license to write bonds in the state. Even assuming ar~uendo that DMG had the necessary power to do so, any attempt to suspend or revoke the license through an NOV would be invalid. Colorado's insurance statutes set forth specific procedures that must be followed before a company's certificate or license can be revoked, including prior published notice of the intent to suspend or revoke and an oppot'tunity for the company to show cause why action should not be taken against it. Accordingly, any attempt by DMG to assert that Frontier's license has been suspended or revoked is totally without merit. Colorado's statutes and regulations authorize DMG to require a company to replace a surety reclamation bond only if certain specified conditions are met. Although Frontier no longer possesses a valid Certificate of Authority from the U.S. Department of Treasury, it maintains a license or certificate of authority to do business in the State of Colorado. Absent s Colorado's insurance statutes authorize the Commissioner to suspend or revoke a company's certificate of authority to do business is the company is insolvent or impaired, as those terms are defined in the statute. C.R.S. § 10-1-11 I. e C.R.S. § 10-1-111 sets forth specific grounds for which a company's license or certificate of authority can be suspended or revoked.