Colorado’s Insurance Accountability Law
An Overview of Colorado's New Insurance Fair Conduct Act
On August 6, 2008, the Colorado Insurance Fair Conduct Act went into effect. See C.R.S. § 10-3-1115 and § 10-3-1116. Generally speaking, the Act states that an insurance company which “unreasonably” delays or denies paying a claim is liable for twice the amount of the claim plus attorney fees and costs. Importantly, this law only applies to “first-party” claimants and does not include insurance companies defending the at-fault party in a traditional auto accident case. If you believe that an insurance company has unreasonably delayed or denied your claim, contact a Denver insurance dispute attorney right away to protect your rights and discuss your options.
The Insurance Fair Conduct Act does, however, apply to first-party claims like uninsured and underinsured motorists (UM/UIM) cases. The law also applies to medical-pay claims. Simply stated, the insurance company is only required to be reasonable to the client that holds the contract with them. This new law provides an obvious incentive for insurance companies to do the right thing up front. It is yet to be determined what effect, if any, the law has on how insurance companies operate in Colorado.
Contact the Denver insurance bad faith lawyers at Fuicelli & Lee, PC for a free consultation and learn more about this New Insurance Accountability Law and how it may affect your claim. We will assess your case and help you determine the best outcome for your situation.