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state of Colorado in the event of a default by Frontier" as Powderhom alleges. The <br />agreement between Frontier and National is a reinsurance agreement. It essentially <br />provides a back up mechanism for Frontier. It does not, however, create any rights in <br />the Division or Board to file a claim directly with National. Further, National is not <br />the surety on file with the Division -Frontier is the surety. The reinsurance <br />agreement is strictly an agreement between Frontier and National. The Division and <br />the Board do not have a cause of action against National if Frontier defaults on its <br />bond. It should also be noted that it is unclear whether a claim on the Frontier bond <br />for the Powderhor site is covered by the reinsurance agreement.Z <br />Simply put, the reinsurance agreement does not cure the violation caused by <br />the suspension of Frontier's license to do business in Colorado. And even if <br />insolvency were the only basis for a violation, the reinsurance agreement also does <br />riot resolve the violation because National is not the surety on [he Powderhom site <br />and the agreement creates no right in the Division or the Board to go against National <br />directly. The agreement is merely an agreement between Frontier and National. <br />present policies. <br />Z Powderhom asserts that National is certified by the U.S. Department of Treasury. This is a <br />somewhat misleading statement. National is certified to issue surety business but is not on <br />the Treasury's list as a reinsurer. <br />10 <br />